State wants better reporting from IDAs
NORWICH – Industrial Development Agencies could lose their authority to grant tax breaks to private companies if they continue to send incomplete reports on project costs and job creation, State Comptroller Thomas DiNapoli announced Wednesday.
“IDAs are supposed to create jobs,” DiNapoli said. “Given the way IDAs are currently reporting information, there is no way of knowing that.”
Starting with the 2007 financial reports, the comptroller’s office will only be accepting audited statements that “are in compliance with all information requested.” Any IDA that fails to report complete data could be suspended from providing financial assistance to local businesses.
Hugh Kearney, the Chenango County IDA’s board chairman, said Thursday morning it was too early to comment on the comptroller’s findings.
“It’s premature to make a comment until I’ve had a chance to review our reports,” said Kearney.
Currently, IDA Executive Director Maureen Carpenter and Economic Development Director Jennifer Tavares compile the reports, Kearney said.
Carpenter said this morning that she’s in support of any changes that will “make information more accurate and accessible to the public.”
“I know our IDA does its best to provide the most accurate information we can in our reports,” she added.
The comptroller’s office found the 116 active IDAs — independent public authorities serving counties, cities, towns and villages — did little to verify individual employers’ job claims in projects totaling some $41 billion, the Associated Press states.
According to a report released Wednesday by DiNapoli’s office, IDAs statewide reported 228,000 jobs created by 2006, with an annual cost per job averaging $4,195.
The Chenango County IDA reported creating four new jobs and retaining 857 at a cost of $403 per job.
However, DiNapoli’s report notes: “A number of IDAs do not report comprehensive information on the number of jobs that existed for each project prior to assistance from the IDA nor on the number of current employees at the end of each reporting period.”
Among 3,813 projects statewide, businesses received $456 million in 2006 tax exemptions and another $1.6 billion in low-interest loans, the comptroller’s office said.
In all, six IDAs accounted for 40 percent of all projects reported in the state.
Chenango had 11 IDA projects in 2006, which received a total of $363,302 in net tax exemptions. In all, the IDA spent $18.1 million last year, the report states.
Beginning this year, IDAs are now required to report all financial information on-line. Carpenter said that has made filing easier and more standardized across the board. In the past, some of the agencies haven’t reported at all.
DiNapoli is also recommending that Gov. Eliot Spitzer increase oversight through Empire State Development and the state Budget Office.
As of 2004, the Chenango IDA’s had 13 project companies that netted a loss of 20 jobs based on their employment figures before and after receiving tax breaks.
Other comptroller facts:
• IDA revenues totaled $110 million in 2006.
• Expenditures totaled $86.0 million.
• $1.6 billion in debt was issued on behalf of IDA-assisted projects during the 2006 fiscal year, with total debt outstanding of $19.5 billion at the end of the fiscal year. $455.5 million in tax exemptions.
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The Associated Press contributed to this report.
“IDAs are supposed to create jobs,” DiNapoli said. “Given the way IDAs are currently reporting information, there is no way of knowing that.”
Starting with the 2007 financial reports, the comptroller’s office will only be accepting audited statements that “are in compliance with all information requested.” Any IDA that fails to report complete data could be suspended from providing financial assistance to local businesses.
Hugh Kearney, the Chenango County IDA’s board chairman, said Thursday morning it was too early to comment on the comptroller’s findings.
“It’s premature to make a comment until I’ve had a chance to review our reports,” said Kearney.
Currently, IDA Executive Director Maureen Carpenter and Economic Development Director Jennifer Tavares compile the reports, Kearney said.
Carpenter said this morning that she’s in support of any changes that will “make information more accurate and accessible to the public.”
“I know our IDA does its best to provide the most accurate information we can in our reports,” she added.
The comptroller’s office found the 116 active IDAs — independent public authorities serving counties, cities, towns and villages — did little to verify individual employers’ job claims in projects totaling some $41 billion, the Associated Press states.
According to a report released Wednesday by DiNapoli’s office, IDAs statewide reported 228,000 jobs created by 2006, with an annual cost per job averaging $4,195.
The Chenango County IDA reported creating four new jobs and retaining 857 at a cost of $403 per job.
However, DiNapoli’s report notes: “A number of IDAs do not report comprehensive information on the number of jobs that existed for each project prior to assistance from the IDA nor on the number of current employees at the end of each reporting period.”
Among 3,813 projects statewide, businesses received $456 million in 2006 tax exemptions and another $1.6 billion in low-interest loans, the comptroller’s office said.
In all, six IDAs accounted for 40 percent of all projects reported in the state.
Chenango had 11 IDA projects in 2006, which received a total of $363,302 in net tax exemptions. In all, the IDA spent $18.1 million last year, the report states.
Beginning this year, IDAs are now required to report all financial information on-line. Carpenter said that has made filing easier and more standardized across the board. In the past, some of the agencies haven’t reported at all.
DiNapoli is also recommending that Gov. Eliot Spitzer increase oversight through Empire State Development and the state Budget Office.
As of 2004, the Chenango IDA’s had 13 project companies that netted a loss of 20 jobs based on their employment figures before and after receiving tax breaks.
Other comptroller facts:
• IDA revenues totaled $110 million in 2006.
• Expenditures totaled $86.0 million.
• $1.6 billion in debt was issued on behalf of IDA-assisted projects during the 2006 fiscal year, with total debt outstanding of $19.5 billion at the end of the fiscal year. $455.5 million in tax exemptions.
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The Associated Press contributed to this report.
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