A report by the state Authorities Budget Office questions the economic benefits of industrial development agencies and local development corporations.
The report, released Tuesday, said it was difficult to quantify the impact of IDAs and LDCs, noting there was no correlation between job growth in a county and the existence of development authorities there.
“It is clear that the current laws governing the activities of certain authorities, particularly industrial development agencies and local development corporations, are in need of review and reform,” the report said.
The report said LDCs “are rarely a major factor in large economic development/job creation projects.” The average loan dished out by LDCs in 2013 was for $213,000 but only produced five or fewer jobs, the report said. Forty-three LDCs made outstanding loans in 2013, according to the office.
The report also said the operating expenses of local authorities continue to rise although staffing levels decline. It also noted that state and local government officials hold more than 1,000 seats out of 3,100 board member positions currently occupied in local authorities. “Directors face the difficult and potentially conflicting obligation to balance the responsibilities of their public positions with their fiduciary duty as a member of a public authority”™s board of directors,” the report said.
The Authorities Budget Office was formed in 2009 by the state Legislature to analyze the operation of local and state authorities. Its purview encompasses more than 500 state and local agencies, including 110 IDAs.
