Republicans are lining up in opposition to a provision in a bill that would reform IDA regulations, calling it the "IDA Death Bill."
The provision would require businesses moving into an IDA project to pay union-scale wages, known as the prevailing wage.
We received a press release this morning from Assemblyman Steve Hawley expressing his displeasure with the bill.
"If this bill is enacted, Albany might as well hang a sign on
the Thruway to tell everyone entering our state that New York is closed for
business," Hawley said.
Other coverage:
Hawley's press release following the jump:
Assemblyman Steve Hawley (R,I,C-Batavia) joined with state
legislators from both houses, including Western New York State Senator
Michael Ranzenhofer and Erie County Executive Chris Collins, to express
their strong opposition to the proposed Industrial Development Authority
(IDA) reform bill (A.3659), commonly dubbed the "IDA Death Bill," at a press
conference held this week in Albany.
"If this bill is enacted, Albany might as well hang a sign on
the Thruway to tell everyone entering our state that New York is closed for
business. This bill, if enacted, would drastically reduce Western New York's
ability to attract business and create jobs, especially in rural
communities," said the Assemblyman, referring to the provision of the
legislation which requires all IDA projects to be "shovel-ready," meaning
the locality will have to have road, sewer and utility services already
installed. As Hawley further explained, "This is a prospective cost that
smaller cities, rural towns and suburban communities simply can not afford.
This bill would leave rural upstate, or 37 percent of the state's
population, out of the equation."
Hawley and his colleagues, who also included Assemblywoman Jane
Corwin (R,C,I-Williamsville) and Assemblymen Thomas O'Mara (R,C,I-Big Flats)
and Marc Molinaro (R,C,I-Red Hook), outlined their opposition to the bill's
provisions to instate a prevailing wage for construction costs as well as a
living wage for all employees of the completed facilities; both measures
which businesses would not agree to due to the excessively high costs, an
increase estimated to be at 25 to 30 percent. The current IDA benefit given
to companies is around 15 percent. Hawley explained, "The problem here is
that this bill calls for employers to pay a higher wage to the employee,
which doesn't sound bad, except that coupled with the many other intrusive
provisions in this bill and the fact that this makes it more expensive,
employers simply will choose to do business with another state. So we must
consider what is better: the current, livable wage or no wage at all?"
Another point of contention with the bill outlined by the
officials was the fact that up until now, New York State's opportunities for
businesses, offered through IDAs and the Empire Zone Program, have been
comparable to neighboring states, such as Pennsylvania. However, parts of
the enacted 2009-10 State Budget have lessened incentives through the Empire
Zone Program, while neighboring states have increased their business
incentives and job creation benefits. Hawley stated, "on top of decreasing
Empire Zone incentives, the state has increased the cost of health care,
energy and insurance costs for businesses. This IDA bill will be the final
nail in the coffin for businesses in New York State, and I strongly
encourage members of the business community and concerned residents to
contact the leadership in Albany to say 'no' to the IDA Death Bill."
