Report: Minnesota JOBZ subsidy program unfocused and lacking oversight
February 8, 2008
A new report criticizes Minnesota's JOBZ business tax break program, saying it has failed to focus on the most economically needy areas and suffers from weak oversight.
A report from the legislative auditor says JOBZ has helped businesses that would have expanded even without aid, and helped other companies that compete with existing Minnesota businesses.
The report also says the Department of Employment and Economic Development has overstated the number of jobs created by the program.
The department also needs to improve its oversight of the agreements that say how many jobs and much investment JOBZ companies will provide. The auditor says some contracts are so loose they are hard to enforce.
The JOBZ program was established by Governor Tim Pawlenty in 2003 and has given tax breaks to 350 businesses.
