“Taking care of business: Does it cost too much?”

From the Asbury Park Press:

Make MSNBC pay up

Nearly a decade ago, MSNBC opened its headquarters in Secaucus, promising to provide jobs in New Jersey for 15 years, thanks to a generous taxpayer-funded business incentive program.

But with its state grants soon to expire, MSNBC is reneging on its commitment, leaving New Jersey five years early for a move to New York City, where it’s seeking $1.5 million in property tax abatements. It shouldn’t be allowed to bail out without returning at least a third of the $8 million in subsidies and tax breaks it received over the past decade.

When MSNBC announced last fall that it was moving its facility, New Jersey said the company owed the state $2.3 million. But instead of demanding repayment, the state said it would reduce future tax breaks and subsidies to a sister CNBC facility in Englewood Cliffs. That’s not good enough. Gov. Corzine should insist on repayment, before CNBC decides to bail out, too.

The New York City Industrial Development Authority is scheduled to vote on MSNBC’s tax abatement request Tuesday. A statement from New Jersey Policy Perspective, read at a hearing before the authority on Thursday, points out this is an example of “companies playing states or cities off against each other while seeking the best tax-break deal. The sooner that government officials catch on, the better it will be for taxpayers.”

In addition to making MSNBC pay up, Corzine and the Legislature should read, or re-read, NJPP’s 2003 report critical of the tax incentives program, “Taking care of business: Does it cost too much?” and review whether changes are in order. The report made several recommendations, including terminating the program if the state was unable to document its effectiveness.

Meanwhile, New York officials would be well advised to heed the closing line from NJPP’s statement last week: “MSNBC was supposed to stay in the state for 15 years. It left after 10. Memo to New York: Don’t count your chickens.”