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Statement
by Brian McMahon, Executive Director,
New York State Economic Development
Council
More
than $2 billion in not-for-profit construction and expansion projects are being
held up by the legislature and Governor while they consider whether or not to
require the payment of prevailing and living wages by employers who finance
projects through IDAs. The law allowing not-for-profits to access low-cost
IDA financing expired on Jan 31, 2008 and has fallen victim to efforts by labor
to leverage statutory wage benefits.
While
the NYS Economic Development Council shares the goal of increasing employment
and wages throughout
New York
State
, we have significant differences as to the best way to accomplish the goal.
IDAs
exist for one reason: to provide a financial incentive to private employers to
invest in our communities. Artificial wage mandates that make
New York
State
even less attractive to employers do not make sense. Ultimately, wage
mandates will make the cost of doing business in
New York
State
even higher, confirming our reputation as a state that is hostile to business.
This will result in less job growth and lower wages.
According
to a report released earlier this year by the independent Center for
Governmental Research, a prevailing wage mandate would increase labor costs
Upstate by 57 percent. Overall project costs would increase by 28 percent.
Downstate, labor costs would increase 80 percent and project costs would
increase by 48 percent.
It
will be difficult, if not impossible for Governor Paterson and new ESDC Chairman
Robert Wilmers to revitalize our economy with the imposition of these mandates.
Learn
more. Get the facts.
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