New PPG Report on Economic Development Funding Exposes Waste and Offers Solutions

Uncategorizedon October 13th, 2011Comments Off

PPG has released a new report, Generating Waste: Problems with NYPA and the IDAs and How to Solve Them.

The report focuses on the three most active Industrial Development Agencies in the region, Niagara, Erie, and Amherst as well as on the NY Power Authority.

The 9 IDAs in Erie and Niagara County are all separate public benefit corporations authorized by NYS to provide sales, property and mortgage recording tax exemptions to businesses. Each IDA has its own Board, staff, legal representation and consultants. The IDAs operating expenses are generated based on fees that businesses pay based on the size of their tax break.

The NY Power Authority is the largest publicly owned utility in the nation, providing New York with more than one quarter of its electricity and operating more than 1,400 miles of transmission lines. Run by a board appointed by governor, NYPA owns 17 power plants that supply about one fourth of the state’s electricity needs.  NYPA is an unusual government entity in that it tends to run a “profit.”  In 2010 NYPA reported net income of $181 million.

The report is produced in coordination with the Coalition for Economic Justice, the Niagara Orleans Central Labor Council and the WNY Area Labor Federation.

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