WHEREAS:

State and local governments increasingly are engaged in harmful and destructive competition to attract businesses to locate within their jurisdictions; and

WHEREAS:

This competition has allowed corporations to hold public officials and taxpayers hostage and to secure massive tax subsidies for their businesses; and

WHEREAS:

Economic studies demonstrate that tax cuts for economic development have little positive impact on economic growth, and in fact are destructive to local economies if tax cuts are paid for by corresponding cuts in public services and infrastructure investment; and

WHEREAS:

In an era of limited budgetary resources, public officials must be certain that they are expending these resources, whether they be direct budgetary expenditures or tax expenditures, in the most effective manner possible.

THEREFORE BE IT RESOLVED:

That AFSCME councils and locals will be strong advocates for responsible economic development programs in states and localities across the nation; and

BE IT FURTHER RESOLVED:

That AFSCME will support public infrastructure investments as a vital part of efforts to encourage economic growth and job creation; and

BE IT FURTHER RESOLVED:

That AFSCME will demand that companies be held accountable to taxpayers for public subsidies by including short- and long-term requirements that beneficiaries meet certain job creation, wage and benefit, and other targets set by the government providing the subsidy; and

BE IT FINALLY RESOLVED:

That AFSCME will push for provisions that would force any firms failing to meet these targets, or other requirements imposed by a state or local government, to repay any tax benefits or direct subsidies received.

SUBMITTED BY:

William T. Endsley, President and Delegate 
Garnet Giles, Recording Secretary
AFSCME Council 8
Ohio