NY Empire Zones Still Under Fire

In a scathing report on the state's Empire Zone economic development program, state Comptroller Alan Hevesi said Tuesday 47 percent of the businesses getting tax breaks created fewer jobs than they promised. Hevesi said his auditors found 23 percent of the businesses analyzed actually lost jobs while just 30 percent met or exceeded their job-creation pledges.

The comptroller's report said state auditors found the zones "are poorly administered, keep inadequate records and do not hold firms that receive tax breaks accountable for actually producing jobs." "Giving companies tax breaks is giving away real money," Hevesi said. "Empire Zone officials must ensure that the tax breaks actually create jobs and healthy companies."

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With government revenues tight everywhere, you can expect more evaluation of costly incentive programs.