Industrial Development Agencies (IDAs), New York’s main job creation tool, are falling asleep on the job. Instead of using our precious tax dollars to make smart investments in companies that create good jobs, they’re giving away the store to irresponsible companies that shift jobs around instead of create them.
We recently found out about this outrageous example in Western NY. Ward’s Natural Science, a division of VWR has collected tax incentives from the Erie County IDA (ECIDA) going back at least since 1971 for a facility in Tonawanda. More recently, VWR started collecting tax breaks from the nearby County of Monroe IDA (COMIDA) for their warehouse in Henrietta. The company has collected $800,000 in tax breaks so far from its 2001 and 2008 deals with COMIDA in return for creating seven jobs. After the company’s subsidy deal with ECIDA expired in December, VWR announced it was closing the Tonawanda location, laying off 41 workers, and consolidating operations in Henrietta.
Tell COMIDA to hold VWR accountable!
IDAs are not supposed to fund projects that merely shift jobs from one part of the state to another. In this case, public money—which we could be using instead to pay for the services we all rely on—is subsidizing a net job loss for New Yorkers.
COMIDA also should not support a company that’s been gaming the economic development system in New York and beyond for years. Since VWR was bought by a private equity company in 2007, they have stepped up their game. In California, VWR is raking in tax breaks as they eliminate good union jobs in one part of the state and “create” lower quality jobs in another. In Pennsylvania, VWR is being subsidized to buy new furniture while downsizing their workforce at a new headquarters office.
IDAs should look at the big picture and protect the public interest when entering into subsidy deals with companies. They also need to periodically review just how well companies are living up to their end of the bargain. Thousands and millions of public dollars are at stake.
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