Promotional Spending Adding up for Taxpayers

Anyone who has turned on a television set in recent years has likely seen state-driven advertising, highlighting various outdoor recreational opportunities, attractions and business incentives. And taxpayers paid a hefty price for those commercials.

 Between 2011 and 2017, New York spent $354 million on tourism and economic development advertisements. The upstate economy has continued to linger and residents have fled in droves during that same period. Despite the governor’s claims, New York was never really “Open for Business.”

 New York State government is facing a $4.4 billion budget deficit, meaning there is absolutely no room for excess, waste, and inefficiency. Unfortunately, those have been the hallmarks of the governor’s job-creation programs and associated promotional efforts.

What’s the return on investment?

It’s important that New York State actively promotes the attractions and unique opportunities it has to offer. But it’s equally as critical to ensure taxpayers are getting a proper return on the money being invested. To date, results have been underwhelming and the lackluster performance begs the question: “Where is your money going?”

 A 2015 audit from New York Comptroller Thomas DiNapoli reviewed $211 million in spending early in the campaign and found “no tangible results.” That’s $211 million that could be applied to reducing out-of-control taxes, or, actually growing the economy.

 Between 2013 and 2015, New York spent $53 million promoting the START-UP NY program. Once touted as a game-changing job-creation program, the governor’s failed initiative only returned a paltry $1.7 million in private investment. 

We must review & eliminate ineffective spending

 Using hard-earned taxpayer dollars to promote ineffective programs is unacceptable, but continuing to do so year after year is madness. With a potential fiscal crisis looming, it’s never been more critical to ensure there is adequate transparency and oversight of the governor’s spending.

 The Assembly Minority Conference has called for greater accountability in the state’s economic-development programs. We have proposed legislation (Assembly bill 5657) that calls for a complete, independent review of all of New York’s job-creation programs. In addition, our proposal would require any lump-sum appropriation of $1 million or more to be reviewed by the budget director, state comptroller, and state attorney general.

 The legislature must do everything in its power to protect taxpayers. In their current form, New York’s promotional campaigns and floundering job programs aren’t doing that. We must take a hard, critical look at the costs and benefits of continuing on our current trajectory. This, of all years, is not one to play fast and loose with taxpayer dollars.    

Brian M. Kolb (R,I,C–Canandaigua), a former small-business owner, is the New York Assembly Minority Leader and represents the 131st Assembly District, which encompasses all of Ontario County and parts of Seneca County. Contact him at kolbb@nyassembly.gov