Alabama hands out millions of dollars in industrial incentives to lure jobs to the state, but taxpayers are too often left in the dark about the deals and what the state ultimately gets in return, a new report from an advocacy group said.
Jobs to Move America, a worker advocacy and research nonprofit, released a report Tuesday saying Alabama does a poor job compared to other states in disclosing information about incentives.
“Alabama taxpayers are left in the dark about even the most basic details of these deals,” the report stated. “The state does not provide any transparency around which companies are receiving economic development incentives, how much they’re getting, how many jobs are created (or not) and at what wage level.”
The report was compiled by Patricia Todd, a former Democratic legislator in the Alabama House of Representatives, who described her difficulty as an elected representative in trying to obtain more information about the projects.
“We’re not against incentives,” Todd said. “There’s needs to be more accountability and transparency on how these deals are doled out.”
Commerce Secretary Greg Canfield, in a response to the report, defended the state’s use and disclosure of incentives.
“We can point to numerous examples where incentives have played a role in industrial growth and job creation across Alabama. This includes Mercedes and other automakers, along with Airbus and other companies that have put down roots in Alabama.”
The department said it routinely releases information regarding incentives on major projects as they are announced, and Commerce Department said Canfield provides a report on incentives authorized under the Alabama Jobs Act to the Joint Legislative Oversight Committee. But Todd said the reports lack details about individual projects, including the name of the company.
ThyssenKrupp, in 2007 agreed to locate its new steel-processing plant to Mobile after receiving a package of state and local incentives. Todd said she and her colleagues in 2006 approved raising the debt limit for the state’s incentive fund based on assurances from the governor that it was necessary to win the project. Six years later, ThyssenKrupp sold the plant, amid fallout from the recession, to another company.
The group recommended several changes, including annual public hearings on corporate subsidies, an economic development budget that would provide a comprehensive accounting of all economic development programs. It also recommends hiring an independent party to evaluate each incentive and provide a report on a public website that includes the amount of incentive, pay scale of workers, return on investment, and job outcomes.
Republished with the permission of the Associated Press.
