IDA Reform Effort Update

In an address to a crowd of business executives and civic leaders this week, Governor David Paterson identified Industrial Development Agency reform as one of 4 ways the state can achieve a better budget for New Yorkers. He criticized IDAs specifically for not creating jobs in our communities and also cited the need to reign in IDAs and other authorities that aren’t accountable to the public.

It’s a good sign that IDA reform is on Governor Paterson’s to-do list now that the state budget is resolved. In just a few weeks on the job, it’s clear that the current administration has already heard our statewide coalition’s call for business standards, accountability measures and transparency reforms that will ensure IDAs are creating quality jobs for New Yorkers.

State Comptroller Thomas DiNapoli has also strengthened our coalition’s position by outlining sweeping reforms in his 2008 report on IDAs and promising sanctions for IDAs that fail to file proper reports with his office. The OSC’s independent report backed up our coalition’s platform and inspired media outlets across the state to renew their call for reform over the last month. Here’s a selection of the headlines—clips below and full articles linked:

► Buffalo News (Editorial, March 10, 2008): Push IDA accountability

► Messenger Post Newspapers (Ontario County: Editorial, March 3, 2008): Reform? Let's see it

► Daily Messenger (Ontario County: Julie Sherwood, March 2, 2008): State Cracks Down on IDAs’ Bookkeeping

► Tonawanda News (Editorial, March 10, 2008): IDAs must track job creation closer

► Rochester Democrat & Chronicle (Editorial, March 4, 2008): IDA reform needed

► Niagara Falls Reporter (March 4, 2008): County IDAs stink

In addition to these editorials and reports, business journals are now picking up the story with more urgency as the construction season gets underway and projects are on hold in many places due to the expiration of IDAs’ civic facility bonding authority. See the clip below from “Prevailing debate stalls IDA projects” published last week in the Long Island Business News which reports that $50 million worth of projects are “tied up” on Long Island alone.

We have kept the IDA reform conversation tuned down since our last mobilizations to Albany in early March, waiting as the new governor took office and worked with the legislature to reach a budget agreement. It is time to turn up the volume on the IDA debate again: we must continue to build on the momentum our coalition has generated thus far in 2008, both locally and in Albany.

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