When fiscal incentives fail to draw jobs to N.J.

RIGHT NOW everyone’s eyes are on the eyesore that was Xanadu – or “the American Dream,” as it’s been renamed. Governor Christie has reportedly offered the international conglomerate Triple Five $200 million to finish what he once called “one of the ugliest buildings in the state.”

But while Xanadu may be one of the most glaring examples of Christie’s generosity to corporations, it’s also just one of many subsidies he’s doled out since taking office. The state has authorized more than $1 billion in taxpayer dollars to corporations since Christie took office.

Proponents of corporate subsidies say that they are simply the price for drawing jobs to the state.

But there’s one big problem with these grants: At the end of the day, they just aren’t very good at creating jobs. Far from bringing the American Dream to New Jersey’s working families, they’re often a nightmare for taxpayers.

Take another recent grant offered by the Christie administration. In February, the state awarded $12.3 million to Citigroup to expand its offices on the Jersey City waterfront and hire 400 workers. The grant comes through the Business Employment Incentive Program, which gives taxpayer money to corporations in return for expanding or remaining in New Jersey.

http://www.northjersey.com/news/opinions/incentives_051211.html


Citibanks is laying off 247 workers instead...

If you are going to do it (and again, I oppose the policy in the first place), then at least include language in the contract with the city or state that compels the company to create jobs and hire local workers.

Gee, now we know why.

There is zero excuse for doing business with them unless you are a criminal.

the fact is, it was there long before Christie was NJ's governor. At this point, it's a decision over whether it would be better to pony up more money to get some possible return on it, or suffer the waste from scrapping it.

It's too early to say what impact it will have on jobs, since it's not open yet. Construction jobs on a major project are only the beginning, it's the long-term jobs from running the project that really produces the tax revenues. Since it will utilize infrastructure that is already in place from the Meadowlands sports complex, it might seem to make sense to complete it. My company expects to supply utility services to it that will help our revenues, and indirectly, my job. Right now, we're not getting a dime off of it, and if it is abandoned or torn down, we never will get anything.

Throwing good money after bad? Maybe, but its proximity to NYC and suburbs makes it a better bet than a lot of projects would be.