Don’t punish recipients of Empire Zone benefits
The recent News editorial, “Reform program fairly,” was right on the mark. The Empire Zone program should be reformed, but not at the expense of companies that, in good faith, based significant investments on the commitment of the state to provide Empire Zone benefits.
The governor’s proposed budget would subject companies that relied on Empire Zone benefits in making significant investments to a 20-to-1 cost-benefit requirement that they were not subject to when they made those investments. Because of this, more than 2,000 businesses could be removed from the program, including GEICO, Barilla Pasta and FedEx in Western New York.
Such actions would result in litigation, relocation and loss of credibility for New York’s economic development efforts for years to come. Economic development is a competitive marketplace, and the loss of legitimacy in New York’s commitments would be used against it by other states and countries with which we compete for projects.
These proposals would have a devastating effect on economic development in upstate, where the Empire Zone program has been the primary incentive used to encourage most major expansion.
Going forward, the Empire Zone program should be rebranded and reconstituted. The current program is too complex, too confusing, too bureaucratic and too expensive. But punishing businesses that have played by the rules and made investments and created jobs in New York would do long-term damage to New York’s credibility as a good place to live and work.
Brian McMahon
New York State Economic Development Council
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