ALBANY, N.Y. (NEWS10) – The latest report released this month on the governor’s tax-free incentive job program, Start-Up New York, says roughly 1,100 net new jobs were created since the start of the program in 2013.
That’s nearly 800 this year alone.
Is it time for Start-Up New York to start packing up operations, political analyst Ken Girardin at Empire Center for Public Policy thinks so.
“The program attracted fewer long term long term job commitments than it did in 2015. That means it hasn’t just leveled out, that means it’s not just taking off, it means it’s melting down,” Girardin said.
Girardin’s work with Empire Center has historically criticized the program since its creation in 2013.
Lawmakers though expressed their own displeasure at this February hearing highlighting the program’s job creation numbers.
Girardin argues the real problem isn’t even the lack of return on investment for the millions spent on advertising.
“It’s that it’s such as distraction from the other bigger problems going on. We’re spending billions of dollars a year in economic development subsidies.”
Costs Girardin says greatly outweigh the number of incentives under Start-Up combined.
The political analyst argues Albany would be much better off shifting away from a job-creation program altogether.
“Where is the state legislature imposing rules and restrictions that put New York at a disproportionate disadvantage. Those are the places that it wouldn’t cost Albany a penny to make changes and to make New York state more competitive.”
From 2014, tax incentives add up to $6 million and when you divide that by a number of jobs created, it equals just over $5,000 per job. The state argues those 1,100 jobs have equaled $140 million spent statewide, that they say is a worthwhile investment.