Tuesday, September 19, 2006
How Many of These Deals Before We Go Bust?
The County Executive and State officials were bubbling over as they announced the hand out of $3.7 million to a pillow maker to expand its facilities and add 50 employees over the next three years. This is the same pillow maker that received a $400,000 grant and $1 million low interest loan in 2002 to move from a City location to a redevelopment site in Duquesne, in other words, within the County.
Now the latest set of grants elevates government development spending per job to new levels-- a stunning $75,000 per job. Consider that the interest on this amount would run about $5,200. It is extremely unlikely that the total of state and local taxes paid by these employees will ever rise to the level of repaying interest let alone the $75,000 principal.
If the County and state keep funding deals with negative returns, it won’t be many years before the whole state goes into receivership. This idiocy should be stopped but since it is political, it won’t.
Now the latest set of grants elevates government development spending per job to new levels-- a stunning $75,000 per job. Consider that the interest on this amount would run about $5,200. It is extremely unlikely that the total of state and local taxes paid by these employees will ever rise to the level of repaying interest let alone the $75,000 principal.
If the County and state keep funding deals with negative returns, it won’t be many years before the whole state goes into receivership. This idiocy should be stopped but since it is political, it won’t.
