Ever been in a bidding war? See reason fly out the window when someone else bids up the object of your desire? Well, according to a blog posted yesterday by New Jersey Policy Perspective, that’s what’s going on in New Jersey’s $80 million bid to keep Goya Foods in the state by offering a tax subsidy for a new headquarters/distribution facility in Jersey City. New York, which is also competing for Goya’s affections, wants Goya to build in Suffern, NY instead.
Well, here’s the kicker: NJPP says that if you do the math, the $80 million tax subsidy would create nine new jobs.
That’s because, according to NJPP’s analysis, 66 of the 175 jobs that would be created by the facility are actually existing jobs in Bethpage, NY and 100 more are current Goya contract worker positions in Secaucus.
“The issue policy-wise is whether the state is spending the money wisely,” says NJPP’s president Deborah Howlett.
Howlett’s not just concerned about the potential Goya deal — and New Jersey could still be outbid by the Empire State — but by a spate of subsidies granted by the Economic Development Authority, including $102 million to Panasonic, $350 million to Xanadu and $261 million to Rebel Casino in Atlantic City.
“That’s a tremendous amount of money for the state to invest,” Howlett says, especially when budgets for schools, libraries, police and parks are being cut. “It’s a choice of corporations over people.”