Recommendations for the Next Round of Economic Development Council Awards
This year New York will allocate $762 million in economic development funds through the recently created Regional Economic Development Councils. This sum includes $150 million in Council capital grants appropriated in the 2012-13 state budget, $70 million in Excelsior tax credits, $350 million in tax-exempt financing, and $192 million in other state grants. 1 This second round of funding follows what the Governor and legislative leaders lauded as a successful first year of awards. In 2011 the Councils allocated $786 million -- $215 million in capital grants, $62 million in Excelsior tax credits and $509 million committed by other state agencies through a process subject to the Councils’ review. 2 Although the Councils have improved the effectiveness of the funding within their purview, they still control only a fraction of total economic development spending and their review process still leaves room for improvement.