New York Governor Andrew Cuomo’s latest “jobs” scheme, which will give tax breaks only to certain businesses that locate near participating colleges, is going to cost more than $320 million. Of course, when he was touting this plan he said it wouldn’t cost taxpayers anything.
A new program to extend tax-free benefits to certain businesses caused the state to downgrade its revenue projections by $323 million through March 2017, according to new estimates from Gov. Andrew Cuomo’s budget office.
The program, known as START-UP NY, allows businesses to avoid paying taxes for up to 10 years if they create jobs and locate near participating college campuses. When lawmakers passed the plan in June, it was touted as having no cost to the state budget by Cuomo and his cabinet members, though a memo accompanying the bill acknowledged a potential loss in revenue growth. …
“(The) START-UP NY program, which creates certain tax-free zones on or near qualifying university and college campuses, is expected to result in reduced receipts growth, starting in (fiscal year) 2015,” the report reads.
In total, the state’s budget gap is projected to be about $1.74 billion in the next fiscal year, which begins April 1, with the state “prepaying” for about $318 million of next year’s expenses this year. The deficit is projected to grow to $2.85 billion in the 2015-16 fiscal year and $2.92 billion in 2016-17. (Read More)
So the businesses and workers who have been working in New York all along don’t get any benefit, but we’ll all get to to pay for these select few. Lovely.