A centralized database of state-approved business subsidies is needed to better track the estimated $5 billion in taxpayer money spent with the stated purpose of creating jobs, but can be "corruption prone," according to a good-government organization.
The group Reinvent Albany on Monday urged lawmakers in budget hearing testimony to approve the creation of the so-called database of deals in order to boost transparency surrounding subsidies.
State lawmakers this month are taking hours of testimony on Gov. Kathy Hochul's proposed $216 billion budget plan, which is expected to be given final approval by the end of March.
Good-government advocates have long decried the billions of dollars spent for businesses to spur job creation, only to have that money poorly kept track of, and controls for doing so weakened.
In its testimony, Reinvent Albany urged lawmakers to approve legislation boosting the state comptroller's power over pre-auditing spending in the budget as well as closing what they argue amounts to a "loophole" in a tax break for businesses.
At the same time, the group wants to end the practice of non-disclosure agreements in economic development deals. Critics of those arrangements contend the agreements prevent the public from determining how taxpayer dollars would be spent on large-scale projects, such as the scuttled deal to bring Amazon's headquarters to Long Island City in Queens.
Other states have used similar arrangements in development agreements, including in Kansas, where $1.3 billion is being spent for an unknown company.