Support the JOBS Act

S6870 – Savino / A8203A – Ryan

The NYS AFL-CIO, representing 2.5 million union members and their families as well as our retirees and their families,
strongly supports this bill which will enact the Just and Open Business Subsidies (JOBS) Act. This will create a
comprehensive approach to increase the effectiveness of the state’s economic development programs and address
situations where programs have failed to create jobs. All state and local government tax breaks, grants, and other types
of economic assistance would be covered, including Industrial Development Agencies.

Many, if not all, economic development programs are enacted to help stimulate private sector investment in communities
and to create jobs. Unfortunately, too many of the programs have evolved into massive corporate welfare programs.
This bill is intended to refocus these various programs to ensure that our state and communities get a return on
investment. Rather than simply increase profits for business by granting public assistance in exchange for empty
promises of job creation, this bill will hold businesses accountable for those promises.

The bill creates new oversight and accountability to track financial assistance agreements as well as the operation and
effectiveness of economic development. The bill provides for transparency and public disclosure, creates local hiring
preferences and would allow for the recoupment of incentives in the event an employer does not follow through on job
creation and economic development promises.

Billions of dollars are spent each year on public assistance for business. New York’s taxpayers have a right to expect and
require that when public money is used for economic development, meaningful jobs are created. This not only helps build
local economies but it helps replenish the lost tax revenue that is given away in the form of incentives.

Therefore, this Federation urges passage and enactment of this legislation.