News from Senator Liz Krueger

New York State Senate | 26th District For Immediate Release: March 5, 2012 Please Contact: Andrew Goldston | agoldston@gmail.com | 917.720.7895

State Senate Republicans Kill Krueger Bill, Block Accountability for Corporations Receiving Special Tax Breaks
Albany, NY Republicans in the New York State Senates Committee on Corporations, Authorities, and Commissions voted down the Corporate Accountability for Tax Expenditures Act (S. 446A / A. 5920A). The bills sponsor, Sen. Liz Krueger (D-Manhattan), condemned the party-line vote as just the latest example of how Albanys power brokers are enabling waste and abuse. The Corporate Accountability for Tax Expenditures Act would amend the Business Corporation Law and the Public Authorities Law to improve accountability and transparency in the use of taxpayers dollars for state economic assistance programs. Under the bill: Economic assistance provided to private corporations by any state agency or public authority must be based on the terms of a standardized written incentive agreement. Certain development assistance agreements would need to be submitted to the Department of Taxation and Finance for review. If a business fails to create or retain the specified number of jobs and breaks the contract, the business will no longer qualify for state economic assistance.

Senate Republicans killed this bill on a party-line vote. For all their rhetoric on reining in spending and protecting taxpayers, their votes tell the real story, said Sen. Krueger. This legislation would go a long way towards ensuring that tax incentive programs are actually delivering the economic development benefits they claim to provide to our state, Senator Krueger explained. While job creation must be a key aspect of New York States economic future, it is not acceptable for countless businesses to take New York taxpayers money without really delivering on job creation or economic development. Dollars spent on tax breaks should be reviewed with the same scrutiny as dollars spent on any other government program, Sen. Krueger said. In addition to achieving results on job creation, companies should be expected to have a record of good corporate citizenship if they are going to receive public support. Currently there are no such standards. If subsidies are really going to benefit the people of New York, the businesses that receive them should be required to pay a living wage, avoid criminal activity, and work with the communities in which they are located. As a result, I have proposed legislation that would require more scrutiny, transparency, and accountability for state-brokered tax break deals.
Albany Office: District Office: Legislative Office Building | Room 905 | Albany, NY 12247 | 518.455.2297 | Fax 518.426.6874 rd 211 East 43 Street | Suite 401 | New York, NY 10017 | 212.490.9535 | Fax 212.490.2151

The legislation was originally formulated in reaction to the excesses of the now-defunct Empire Zones program, and remains relevant. To this day, New Yorks state government gives out untold millions in tax credits and other incentives without even compiling a unified budget for these expenditures, which are arranged through a variety of government agencies and programs. ###

Albany Office: District Office:

Legislative Office Building | Room 905 | Albany, NY 12247 | 518.455.2297 | Fax 518.426.6874 rd 211 East 43 Street | Suite 401 | New York, NY 10017 | 212.490.9535 | Fax 212.490.2151