IDA's not doing what they are supposed to -
DiNapoli: Audits Find Certain IDAs Lack Job Creation Data
Concerns with Contracts, Unauthorized Loans Also Identified
Recent audits by New York State Comptroller Thomas P. DiNapoli have revealed a number of local Industrial Development Agencies (IDAs) do not verify if businesses receiving tax breaks are actually meeting job creation goals. These same IDAs are unable to recover incentives given to companies that fail to reach specific benchmarks because of inadequate contract agreements.
DiNapoli’s office audited the IDAs in Cattaraugus County, Orleans County, Oswego County, Schenectady County and Schuyler County. The IDAs responses are included in the audit reports.
“These audits highlighted what is both right and wrong with IDAs in our state,” said DiNapoli. “Too many communities are left with unanswered questions about the effectiveness of providing costly tax breaks to private companies. IDAs owe it to taxpayers to appropriately track whether companies are delivering on their promises and take back benefits if they are not. My office will continue to scrutinize the operations of these entities so that residents can better determine if their local IDA is fulfilling its mission.”
The Comptroller’s audits, which focused on project approval and benefits, revealed:
County of Orleans IDA
•None of the project agreements that were reviewed contained recapture provisions. For example, one business received more than $600,000 in tax abatements, but closed its operations three years into a 10-year agreement. The company was not held accountable.
•Officials billed one business for payments in lieu of taxes (PILOTs) using an agreement billing schedule that was different from the board-approved schedule, resulting in the under-billing of $246,000 over a 12-year period. If not corrected, this would have increased to a projected $635,000 over the 20-year agreement period.
•Officials did not require periodic reporting of necessary information from businesses or verify the information that was provided, and therefore did not adequately monitor projects to ensure they met promised goals.
Full article:http://www.osc.state.ny.us/press/rel...=042815release
