Four Subsidy Stories You Might Have Missed This Week
1. New York has flooded microchip manufacturers with billions in subsidies, and New York Focus does a solid deep dive. There’s too much good stuff to quote here, so make sure to read the whole thing.
“The dirty secret about certain industries, including microchip fabrication plants, is that they don’t create very many jobs,” [says] Greg LeRoy, executive director of Good Jobs First.
2. GlobalFoundries is building a second fab plant in NY – and Empire State Development gives a Glomar statement in response to a question about subsidy discussions (Times Union).
New York state – which had officials from its Empire State Development division at Monday’s announcement – could also be involved in providing financial subsidies to GlobalFoundries as it has done in the past. New York’s cash grants and tax breaks have surpassed $1.5 billion over the past decade […] “Empire State Development welcomes discussions with any business that is looking to create jobs and invest in New York state (but) does not confirm or deny whether any potential negotiations are occurring until such time as they are concluded,” ESD spokeswoman Kristin Devoe told the Times Union.
3. In a surprise decision, the Fort Wayne, Indiana City Council rejected tax breaks for a new Amazon distribution center (Wane.com).
Amazon’s tax abatement or “tax phase in” proposal was struck down at Tuesday night’s City Council meeting […] After a long discussion, the proposal failed by a 3-5-1 vote.
4. At Boondoggle, Pat Garofalo dives into Florida’s new $570 million in tax credits for Disney – which will not create new jobs for Floridians.
Overall, Disney has received nearly $1.5 billion in state and local subsidies; this new haul will take it over $2 billion. California currently tops the leaderboard when it comes to giving the most to the Mouse, but Florida will overtake it once the new package is fully paid out […] California, in fact, should be a cautionary tale here. It has given nearly half a billion dollars in subsidies to Disney, only to see thousands of jobs vanish because another state came along with a major tax credit package.
Finally, Good Jobs First’s latest newsletter has great updates on subsidy news in Ohio and across the country – make sure to check it out!
If you got this from a friend, sign up here. Subsidy Sheet is written by Tom Speaker, Policy Analyst at Reinvent Albany. Please send questions and tips to tom [at] reinventalbany.org. We look forward to hearing from you!