Money-Back Guarantees For Taxpayers: Clawbacks and Other Enforcement Safeguards in State Economic Development Subsidy Programs

Source: Philip Mattera, Thomas Cafcas, Leigh McIlvaine, Andrew Seifter and Kasia Tarczynska, Good Jobs First, January 2012

From the press release:
Despite the fact that many economic development deals fall short on job creation or other benefits, states are highly inconsistent in how they monitor, verify and enforce the terms of job subsidies that cost taxpayers billions of dollars per year. Many states fail to even verify that companies receiving subsidies are meeting their job creation and other commitments, and many more have weak penalty policies for addressing non‐compliance.
These are the key findings of Money‐Back Guarantees for Taxpayers: Clawbacks and Other Enforcement Safeguards in State Economic Development Subsidy Programs, a study published today by Good Jobs First, a non‐profit, non‐partisan research center based in Washington, DC. The report is a companion to Money for Something, a Good Jobs First study issued last month on the performance standards built into subsidy programs. Money‐Back Guarantees rates states on how well they enforce those standards.

Leave a Reply