ALBANY, N.Y. - The billions of dollars spent on Industrial Development Authorities in New York are not creating "measurable benefits," according to a new report.
The latest Authorities Budget Office report found significant problems at many of the 578 public authorities now operating in New York. These public authorities are often created to work outside the state budget process to spur economic development. While the number of authorities has grown by 200 percent in less than 20 years, Alex Camarda, senior policy consultant for Reinvent Albany, said they simply are not doing what they were supposed to do.
"While most authorities exist for the purposes of economic development, they have no direct impact on private-sector job growth, whatsoever," he said. "We think that's a real indictment of the very purpose of many of these authorities."
The report found the three counties with the highest number of projects approved by local authorities showed growth in private-sector employment, but at levels below the state average.
While authorities get money from the state, they also can issue bonds and currently have a combined total debt of almost $270 billion. Camarda called that a real problem for transparency and accountability.
"It's not honestly portraying the debt and obligations that the state owes," he said, "which is a real burden on taxpayers, particularly over time as the amount of debt accumulates."
The report also said almost half of procurement money spent by local authorities is not subject to competitive bidding and it identifies a number of serious ethics violations.
These problems persist despite major reforms in 2005 and 2009, Camarda said, so the solution may be to stop creating more of them.
"We would like to see fewer authorities," he said. "We would like to see their responsibilities and duties centralized, and there should be a real reduction, particularly in local development corporations."
He said many responsibilities now entrusted to public authorities could be taken on by state agencies.
The report is online at abo.ny.gov.
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Nebraska legislators are in the first full week of the special session focused on Gov. Jim Pillen's goal of decreasing property taxes by as much as 50%.
Among the groups keeping a close eye on the session and the governor's proposal is the Nebraska nonpartisan fiscal research organization OpenSky Policy Institute.
Rebecca Firestone, executive director of the institute, acknowledged they are still analyzing Pillen's plan and modeling its potential effects. She said it appears it would provide "substantial property cuts for large landowners," many of whom don't live in Nebraska.
"For the large portion of Nebraskans who do not own property, what we're looking at is a tax increase for them," Firestone argued. "It's a tax increase on some core aspects of daily living that for many Nebraskans of modest means will be hard."
Firestone cites sales taxes on automotive repair services as an example of a necessary service likely to become more expensive under this plan. A few of the other services to add sales taxes are veterinary services, hair cutting and legal services.
A document on the governor's website maintains with sales taxes, people are "in control," because they can decide what to purchase, when to purchase it and how much they are willing to pay.
In addition to new sales taxes, funding for the governor's plan would come from budget cuts, including to behavioral health, developmental disabilities and other health and human services programs. Firestone called the cuts unsustainable, potentially harmful and lacking in transparency.
"The methodology driving those cuts, which is from this contractor Epiphany and Associates, has not been made public to the people of Nebraska," Firestone pointed out. "Which is what the legislative process is for, and that needs to be a part of any rationale for budget cuts."
Firestone noted while OpenSky "appreciates the scope and ambition" of Pillen's plan, such a "major overhaul" of the state's revenue system warrants more than a special session.
"The Legislature must have the ability to exercise its oversight over how the state spends its money," Firestone contended. "To sort of redo that in a special session doesn't allow the kind of deliberation and careful scrutiny that our state budget deserves."
Pillen's website document states at the current rate of increase, property taxes in Nebraska will be increasing by $6 billion annually by 2026.
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This month, a Pittsburgh nonprofit working with immigrants was fined almost $200,000 for unfair labor practices.
It is one of a growing number of cases decided by the National Labor Relations Board. The NLRB found the organization Hello Neighbor denied pay increases and let workers go for their union support.
Buddy Maxwell, a United Auto Workers' organizer and Mack Truck worker in Macungie, said the NLRB is necessary for its ability to protect workers' rights, although its future may depend on who wins the presidential race in November.
Maxwell pointed out more workers seem to want to unionize, which he added has been easier under the current administration.
"As of now, we are probably at our highest of organization," Maxwell observed. "I mean, you're talking about wins of over 70% of organizing campaigns, as well as well over probably 100,000 that wanted to join unions and be able to have a say in their workplace."
The NLRB said union election petitions filed with its office were up 35% in the first quarter of 2024, compared to the same time in 2023. But the agency said it has struggling to keep up with the demand, including investigations of unfair labor practices since its budget has been flat for much of the last decade.
Maxwell, an Air Force veteran, explained he has been working for Mack Trucks for 30 years and played a role in his local union's six-week strike last year. He has also helped other workers in their organizing efforts, including at the Westport Axle plant in Alburtis.
"I became a lead organizer, and we ended up winning that organizing drive by over 70% of the vote," Maxwell noted. "And now, I am now working on another project for UAW International, trying to organize between 5,000 and 6,000 employees."
He emphasized the NLRB helped workers who were fired during the Westport Axle organizing drive get their jobs back. He added it is not uncommon for employers to mount anti-union campaigns. The NLRB said unfair labor practice charges were up 7% in the first quarter of this year.
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Pennsylvanians are seeing some financial relief with their property taxes and rent. The state expansion of the existing property tax and rent rebate program began distributing rebates this month.
More than 442,000 rebates, totaling $266 million, are in the hands of Pennsylvanians.
Bill Johnston-Walsh, state director of AARP Pennsylvania, said the expansion program helps people age 50+ and 18 years and older living with a disability to stay in their homes and eases the burden of high property taxes and rising costs.
"For this year, it was able to increase the rebate rates, the average rate increase from $650 to $1,000," Johnston-Walsh outlined. "The income cap for homeowners increased from $35,000 to $45,000. And then also, the income cap increase for renters from $15,000 to $45,000."
According to the Pennsylvania Department of Revenue, income thresholds for rebate eligibility will adjust with the cost-of-living changes, providing a safety net to protect recipients, even as their Social Security benefits rise over time.
Johnston-Walsh noted the deadline to apply for the program has been extended to Dec. 31 and several application options are available, such as online at mypath.pa.gov, in-person, by phone or by mail.
"You also go to the Department of Revenue website and you download the paper application, and then you'd be able to mail it in to the Department of Revenue," Johnston-Walsh explained. "The third way is in person. The department has revenue offices throughout the Commonwealth."
Johnston-Walsh added AARP advocated for the program expansion to help more older Pennsylvanians access it. The Keystone State is home to almost 3.5 million people age 60 and older.
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