Good Jobs First: Public-Private Power Grab: The Risks in Privatizing State Economic Development Agencies
While some states have turned to public-private partnerships (PPPs) to revitalize their economic development agencies, Good Jobs First finds that these arrangements often present more problems than solutions.
1/25/2010
Seven states currently utilize PPPs: Florida, Indiana, Michigan, Rhode Island, Utah, Virginia, and Wyoming. Several other states have used PPPs in the past but have since abandoned them. But problems have frequently resulted under these arrangements. Some of these conflicts have included:
• Misuse of taxpayer funds (Rhode Island, Florida, Wyoming)
• Inflated executive bonuses (Virginia, Florida, Michigan, Wyoming)
• Questionable subsidy awards by PPP subset with a role in the process (Michigan, Rhode Island)
• Conflicts of interest when awarding subsidies (Florida, Utah, Texas)
• Questionable claims about PPPs' effectiveness (Wyoming, Florida, Utah, Indiana)
• Resistance to accountability (Florida, Michigan)
Despite the potential problems, states will likely continue to pursue PPPs. Good Jobs First also presents a due diligence checklist for implementing these partnerships.
Most Read
-
-
“Made in America” Executive Order to Affect International Companies and FDI
Q1 2021
-
Trends in Office and Industrial Parks
Q4 2020
-
34th Annual Corporate Survey & the 16th Annual Consultants Survey
Q1 2020
-
Another Look at Rural Economies
Q4 2020
-
2019 Leading Metro Locations: Pacific and South-Atlantic Metros Dominate the List
Q4 2019
-
Supply Chain Execs Respond as Pandemic Creates E-Commerce Surge
Q4 2020