The saying “anything is better than nothing” is often used when describing the low-paying, inadequate jobs in our area. But I have to wonder if it holds true. I think it depends on what we pay for them.
The pattern repeats itself over and over. Politicians and businessmen trumpet their latest plan to spend taxpayer money as a lure for businesses to locate, relocate or just stay in our area. Grants are given, taxes are abated, low-interest loans are secured and sites prepared, all on the taxpayers’ dime. The news media runs stories and pictures depicting every step of the construction, culminating in the obligatory ribbon cutting with all our business and political leaders in attendance, each one eager to take credit.
The actual results of these projects are not nearly as clear or well reported, however. Still, politicians, current and potential, continue to preach the successes of, and the need for, these projects, yet the empty buildings, vacant industrial sites and perpetual joblessness of our community suggest otherwise. Were jobs created in numbers and quality that justify the millions we’ve spent, or did we simply enrich some well-connected businessmen?
Perhaps the most celebrated government funded project in our area is the Coal Township-SEEDCO Industrial Park. Located in a Keystone Opportunity Zone, millions were spent to prepare this area, in addition to at least $2 million in grants and loans reportedly given to Reinhart FoodServices for locating there. The real incentive, however, is the tax-free status enjoyed by KOZ residents. Together with other goodies, this helped persuade Reinhart to move all the way from Sunbury to Coal Township.
To find out just what we paid and what we got from this project, I used our new Open Records Law to make requests asking what was spent, how much taxes were deferred and how many jobs were created. (Retained jobs shouldn’t be considered. Using taxpayer dollars as a bribe just to keep a business that otherwise can’t stand on its own is a public works program at best, a corporate bailout at worst). Records I viewed from the Department of Community Economic Development (DCED) gave some answers. Unfortunately information about tax forgiveness, probably by far the most costly taxpayer benefit, is not considered public information. However, employment documents show that as of 2010 Reinhart employed 302 people, 12 less than when it moved to SEEDCO. Twelve less? After all the promises, hype and millions spent, how could we actually have lost jobs? And why is this little fact not included in all the PR stories and campaign speeches we’ve been subjected to?
Obviously, the public money used in this project could have been utilized more efficiently and fairly. A walk through any of our downtowns quickly proves that. We could use it for a state park, for property tax relief, to fix roads or just return it to the taxpayer.
A web search of reports on economic development programs shows the amazing amount of giveaways available and the lack of scrutiny they receive. Considering this, plus the recently reported fact that most large companies in Pennsylvania already don’t pay state corporate taxes, it’s obvious that the widely accepted claim of Pennsylvania not having an atmosphere friendly to business appears quite lame. Just note the mention of taxpayer assistance in all the articles reported about potential businesses coming to our area. Apparently our “captains of industry” need a lot of “socialized” funding to finance their “capitalism.”
This topic takes on a special importance at this time. We have more companies making happy sales pitches, seeking state funding to subsidize their operations here. We are being asked to, among other things, pony up another $1.4 million for a pumping station that would help create “as many as 2,000 new jobs.”
Of even deeper concern is the unquestioning support of the politicians that fail to call for greater openness and responsibility from companies receiving state aid, while actually bragging about being involved with these costly undertakings of questionable returns. I wish they were as careful with our money as I’m sure they are with their own.
Especially now in these times of hard economics and mistrust of government and big business, every tax dollar should be targeted to do the most for our community. For the use of public funds we should expect more guaranteed results from our businessmen, more openness from our politicians and more questioning from our newsmen.
At the very least the next time we’re told how marvelous these projects are and how imperative that it is we continue funding them, we should firmly reply, “prove it.”