A few days after the New York Times published a blockbuster investigation on corporate subsidies and their dubious benefits, Governor Andrew Cuomo announced a $50 million investment in a company, Albany Molecular Research, Inc., bringing 250 jobs to Buffalo.
That’s $200,000 per job. The state will pay for $35 million in new equipment and $15 million in lab space. All of this will benefit a private company.
AMRI has lost money for three straight years. It’s cut jobs and reduced facilities. Aside from the question of whether government should be in the business of providing such large subsidies, this a very clear roll of the dice.
“At first glance, this is not a stock I would recommend to a client,” said Brighton Securities President George Conboy.
Cuomo has promised Buffalo $1 billion in economic development money. We’ll likely see more of these announcements. Meanwhile, other regions and companies of the state have to compete for grants. This is government picking winners and losers.
In Buffalo, the state better hope it picked a winner. There are no guarantees.
Links of the Day:
– Zip lines, horseback riding, rock climbing coming to downtown Niagara Falls?
– Dubbed “Skleinos” by Albany media, new state senate leadership structure is mocked by the New York Post as “banana republic buffoonery.”
– Unionizing workers at the bottom of the pay scale will be difficult. But the alternative to raising wages is building a government safety net to help low wage workers survive.