Department of Economic Development

Economic Development Zone Program (Follow-Up Review)

Under the economic development zone program, businesses in economically distressed areas called economic development zones are given tax credits and other financial incentives in return for a commitment to create or retain jobs. In our prior audit report 95-S-78, we found that, despite legislative requirements to the contrary, the Department of Economic Development had not taken the actions necessary to determine whether the program was accomplishing its objectives. In addition, since the Department was not collecting data relating to the financial benefits given to businesses participating in the program, it was not known whether program benefits exceeded program costs. We also determined that businesses may receive financial benefits from the program without fulfilling their commitment to create or retain jobs. In our follow-up review, we found that progress has been made in addressing the problems identified by the prior report.

For a complete copy of Report 97-F-37 click here.