Economic Development and Fiscal Accountability Act

Many states continue to hand out taxpayer monies in the form of subsidies and contracts to corporations without holding the companies accountable for how they use the money or whether they are even playing by the rules.  These “no-strings attached” subsidies and contracts are bad for states, bad for taxpayers and bad for working families – particularly in light of the huge budget crisis facing states across the country.  With states facing immense budget shortfalls, it is more important than ever to make sure taxpayer dollars are used wisely.  States should make sure that taxpayers – and states – get their money’s worth by establishing requirements that hold government subsidy recipients and contractors accountable for the way they spend taxpayer dollars, and making sure that companies who receive subsidies raise – not lower – the living standards of working families.  If companies fail to live up to the promises they made to receive the subsidy or the tax break, then they should return the money.