The Citizens Budget Commission's (CBC's) new policy brief, 11 Billion Reasons to Rethink New York's Increasing Economic Development Spending, reveals that New York's State and local economic development spending continues to increase without sufficient evidence that these programs cost-effectively create jobs. 

While the State deserves credit for increasing transparency, State and local governments spent a combined $10.7 billion in 2022 on economic development, including direct expenditures and tax breaks, the highest level since CBC began tracking this spending.

Furthermore, after holding relatively steady in recent years, economic development spending has started to increase again—and by 2025 total spending could reach $13 billion based on recently approved spending increases, including new capital spending, the expanded film tax credit, and the Green CHIPS program. 

This spending continues to increase even in the absence of evidence of its effectiveness. With both New York State and New York City facing significant budget gaps in the coming years, policymakers should commit to thorough, data-driven evaluations of the effectiveness of economic development spending and commit to reforming, shrinking, or eliminating programs found to be ineffective.