Looks like most folks who answered a recent SWOPblogger webpoll about the proposed minimum wage increase want to see, to say the least, more livable wages - particularly when the jobs are tied to development, subsidies and taxbreaks. But how do we hold subsidized companies accountable? Who pays and who benefits from subsidizing private deals?
Illinois now has a web-based business subsidy reporting system. In a copied and pasted article below, the author asks why haven't other states, cities and local governments done the same?
In a city such as ours struggling through economic development reform - after years of scant accountability for decision makers and the companies that benefit the underground world of business recruitment - more transparency is desperately needed.
June 02, 2005 - by Greg Leroy, Good Jobs First
Illinois made accountability history this week, with the launch of its Web-based business subsidy reporting system. The new system is one requirement of the Corporate Accountability in Tax Expenditures Act, which was signed into law as Public Act 552-93 in 2003 and is phasing in over two years.
For a list of subsidized companies, go to:
www.corpacctportal.illinois.gov/ProgressReport.aspx
And for a sample company-specific report, go to:
www.corpacctportal.illinois.gov/output/2004/2004- Target%20Cor-DeKalb_137.pdf which shows that a Target warehouse planned for DeKalb will receive EDGE tax credits, even though more than 80 percent of the projected jobs will pay less than $22,000 annually.
This makes Illinois the fourth state to post job subsidy disclosure data on the web. Other states that post reports on the web include:
North Carolina
www.dor.state.nc.us/publications/williamslee.html
Minnesota
www.deed.state.mn.us/Community/subsidies/MBAFYe ar2004.htm
Ohio
www.odod.state.oh.us/ez/base/
Under the new Illinois law, companies getting state subsidies in 2004 and after must report basic data on promised job creation, broken down into job classifications with average wage levels. They must also update that information with yearly progress reports. While only companies will be able to add data to the site, all data reported will be accessible to the general public.
The new website includes company-specific summaries listing all the subsidies received from state agencies.
Users of the site will also be able to sort data by subsidy program. The data will even include company- specific data on state corporate income tax credits received under the controversial Economic Development for a Growing Economy (EDGE) program. The value of the credits will be estimated for the first two years, and reported with exact figures after.
Failure to submit an annual company compliance reports will trigger clawback actions. For companies failing to meet job creation or job retention pledges and lacking a waiver from the Department of Commerce and Economic Opportunity's (DCEO) director, clawback (or recapture) proceedings will begin at once. Waivers will be posted on the website as soon as they are granted. This year, subsidized Illinois companies have until May 15 to submit progress reports, plus a 53-day grace period. Starting in 2006, they will have only 30 days to comply after the due date before DCEO attorneys initiate recapture proceedings.
The Unified Economic Development Budget, also mandated by Public Act 552-93, will be published by September 30, three months after the end of the state's fiscal year.
On the new website's home page, Illinois Governor Rod Blagojevich claims his administration has been guided by three principles when making job investments - analysis, accountability and transparency. However, most of the credit for this giant step towards open government goes to member organizations of the Corporate Accountability Coalition formed in 2002. Led by the Illinois AFL-CIO, the Center for Tax and Budget Accountability, AFSCME, SEIU, and Citizen Action/Illinois, they drafted the original bill and resisted attempts to water it down. Good Jobs First helped make the case for more accountability in its January 2003 report, A Better Deal for Illinois, and we testified about our findings at the request of state legislators.
It's 2005: shouldn't *your* state's economic development subsidies be on the web?
Greg LeRoy
Executive Director
Good Jobs First
email: goodjobs@goodjobsfirst.org
phone: 202-626-3780 ext. 27
web: http://www.goodjobsfirst.org
# posted by karlos @ 4:15 PM
