Posted: 02/09/08 14:31
by Dave Mindeman
The basic tenets of conservative Republican thought implores us to support the concepts of limited government. Let the market decide, they say....the private sector can be an unrelenting engine for growth if government would just stay out of the way.
So, you have to question the logic of a couple of state programs that have heavy Republican support....yet, the State Auditor says they are having the opposite effect that was intended.
JOBZ Program: This is a Tim Pawlenty brainchild and he has consistently defended it and even wants it expanded. Yet, the facts seem to indicate a dysfunctional program. The legislative auditor's report indicates this:
But mostly, the report detailed a program that doesn't target the distressed areas it was designed to help and forfeits millions of dollars in tax revenue by granting breaks to firms that admit they don't need them.
Millions of dollars in tax revenue needlessly wasted to give the impression of economic stimulus from the administration.
The program has good intentions but it has been unfocused and a big disappointment. The article points out:
Surveys of JOBZ businesses indicate that nearly seven in 10 would have expanded to the same extent or to a lesser degree without the tax breaks, the report said. Some regions of the state with higher levels of economic distress "have experienced lower than average benefits from JOBZ," according to the report. Northern Minnesota, which had the highest unemployment rate, benefited less from the program than other areas in Minnesota.
And part of the problem is that the Governor's office has been stonewalling on oversight. Details of how the program operates and where it is emphasized are hard to obtain.
And get this:
The report also disputed DEED's claim that the average annual cost of a new job created by JOBZ is about $5,000. The legislative auditor put the cost at $26,900 to $30,800, and the average annual wage paid to JOBZ employees at $30,700.
You would be better off writing these workers a check directly from the state treasury, then to go through all of the JOBZ hoops.
The Legislative Auditor pointed out another problem with a state tax giveaway to the wealthy:
Green Acres: The Legislative Auditor, again, questions the end results for a program that was intended to help small farmers continue to farm. The Auditor says:
However, Legislative Auditor James Nobles reported that in practice, the law winds up giving a huge tax break to developers who are holding land strictly for future subdivisions and Taco Bells.
These tax breaks cost the State millions in revenue...at a time when we are facing projected deficits again. The report's author, Jody Hauer gives specifics:
Several parcels in Washington and Wright counties "ranging in value from $300,000 to more than $5 million ... are owned by land developers or others outside farming who pay one-tenth or less of what their taxes would be without the Green Acres Program."
You have to wonder why Governor Pawlenty criticizes Social Service programs for gouging the state budget, when this type of largesse to the wealthy is right in front of his face.
