A bill is expected in the State Assembly as early as this week for a new jobs plan at the urging of Governor Pat McCrory. But it comes on the heels of a new report that 60% of those projects under the Job Development Investment Grant (J-DIG) Program have failed to deliver what they promised.
That’s according to the North Carolina Justice Center and the report’s author, Allan Freyer, who questions the allocation of additional funds, “If there were any other program in state government that failed 60% of the time, the Legislature would have eliminated it already.”
The J-DIG program has a spending cap of $22,500,000 annually. Recently, more than half the money was awarded to MetLife in Charlotte, which Freyer points out reduces availability of funds for other, smaller companies in rural communities where jobs are badly needed. The report says 90% of J-DIG dollars have gone to urban communities and more than 77% of projects approved in rural communities have failed.
Supporters of the J-DIG program say it enables the state to compete with others for new projects or expansions with existing employers. The money is not awarded to companies until they fulfill their promise of added jobs, but Freyer points out the money for J-DIG is still a line item in the budget and cannot be allocated to other proven programs, “It’s less money that’s available for the real building blocks of economic growth like education, job training, industrial and transportation infrastructure. These are the types of investments that actually promote broadly shared economic growth that benefits everyone in the state.”
The report recommends the state examine why so many incentive programs are failing, improve the evaluation process before projects are approved, and focus incentives in industries predicted to experience the largest growth.