By The Illinois PIRG Education Fund
Illinois received a “C-” for making critical information about how governments are subsidizing business projects with taxpayer dollars readily available to the public online, according to a new report from Illinois PIRG Education Fund and Frontier Group. “Following the Money 2019,” the organization’s tenth evaluation of online government spending transparency, gives 17 states a failing grade, while only four states received a grade of “B” or higher.
Illinois received an “C-” grade because researchers could not find any statewide grants report, nor reporting on whether economic development subsidies are producing the promised benefits, among other scoring criteria.
“As taxpayers, we should be able to see how government spends our money down to the dime,” said Abe Scarr, Illinois PIRG Education Fund Director. “That includes the billions of dollars that state and local governments give away each year to lure businesses into their backyards.”
U.S. PIRG Education Fund and Frontier Group’s “Following the Money” reports have evaluated states on online spending transparency since 2010. While many states have made progress toward providing citizens access to government spending information online, this year’s report finds economic development reporting is still lagging behind.
“It’s often easier for citizens to see when a state hands a company $50 for printer ink than when it hands a company a million dollars to relocate its headquarters,” said R.J. Cross, report lead author and policy analyst at Frontier Group. “States have moved light years ahead in the last decade when it comes to providing information on basic government spending online. But when it comes to economic development subsidies, most are still in the dark ages.”
The report graded each state’s transparency efforts from “A” to “F” based on the availability of online reports detailing how much the state spends through tax breaks and direct grant programs; the availability of information on individual payments to companies on the state’s transparency site; and the existence of state laws that require ongoing reporting of information on economic development subsidies to the public.
“Transparency checks corruption and enables citizens to hold their elected officials accountable,” said Cross. “Without access to information, it’s impossible to know how fully these corporate subsidies are serving the public’s interest.”
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See also:
* Nonprofit Quarterly: Corporate Incentives: The Economic Development Race To Nowhere Must Stop.
* Wisconsin Public Radio: Study On Foxconn Deal Shows Government Subsidies Don’t Work.
* Kansas City Star: Kansas-Missouri Border War Over Corporate Incentives Already Back After Brief Truce.
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Comments welcome.
Posted on December 12, 2019