Governor Andrew Cuomo has funneled more than $1 billion to kickstart economic development in the state, but so far, his much-touted Start-Up New York program has been a huge bust.
The goal of Start-Up New York was to spur job growth by excusing companies affiliated with participating colleges and universities from paying taxes for 10 years. But a report released last week indicates that the program only created 76 jobs last year—a pretty grim figure considering Ken Adams, the state's Commissioner of Taxation and Finance, said just two months ago that the program had attracted $104 million and committed to create 2,300 jobs, Crain's reports.
The Department of Economic Development annual report also notes that just 30 companies began operating in 2014, despite 54 being initially approved. In total, they've invested only $1.7 million in the $91 million promised over five years.
An additional 26 of the applications submitted in 2014 have since been approved in 2015, while 12 have withdrawn applications.
While the program perhaps just needs more time to get off its feet, it does have its detractors. State Assemblyman Kieran Michael Lalor has called for it to be shut down, calling it "an expensive gimmick."
“There’s no way to justify that kind of waste. We already knew Start-Up NY would cost taxpayers, but now we aren’t even seeing any jobs,” he said.