Times Union Op-Ed: Rep. Tonko Editorial On IDA Reform In NYS

Op-Ed

Word that Global Foundries has struck a deal with New York State to provide prevailing wages for workers who will construct the company's state of the art chip plant in Malta is a huge win for New Yorkers. It guarantees that taxpayer dollars will be spent wisely to support quality job standards and a living wage for local workers and their families. I applaud Global Foundries and New York State for engaging in a private-public partnership that will create thousands of jobs, and should be used as a model for future economic development.

New York's lawmakers will soon have another chance to protect public investment and create jobs when it considers a bill that would reform the way Industrial Development Agencies (IDAs) do business (A3659/S1241). This bill would force IDAs to be more responsible, transparent and accountable through new regulations including the creation of wage standards, ensuring these projects result in good-paying, middle-class jobs, and providing a money-back guarantee when companies don't hold up their end of the bargain and come up short on job creation.

The main purpose of an IDA is to create good jobs and strengthen our local economy. They can and should be a local driving force of sustainable economic development. Too often, however, they end up subsidizing poverty wage jobs, and even cut jobs instead of creating them. Now, as IDAs are set to channel nearly $2 billion taxpayer dollars in federal stimulus money throughout New York State, we need to make sure our money is not going to waste. In this economic crisis, we need all of our economic development programs to be working as efficiently as possible. Attaching wage standards to our public investment is a good public policy, and a practice that many other states share, including the top ten pro-business states as ranked by Forbes Magazine. Wage standards actually make the state more competitive by increasing productivity and quality of work. Additionally, higher wages have a positive impact on local incomes and tax revenues.

At a time when unemployment has reached unprecedented levels, we need to make sure that public dollars, which are earmarked for economic development, circulate back into our local communities to create middle class jobs for our working families. These goals can be accomplished by implementing these reforms to improve the performance and accountability of IDAs.

Working in partnership with state and local governments, I know we can get our region back on track and put our residents back to work. By ensuring the attachment of wage standards on economic development projects throughout New York State, we can provide our residents with family-sustaining jobs that will better our communities and invest in our future.

Source