Good roads or good jobs?

Tomorrow, the San Jose City Council will consider "an agreement" between the city and Samsung Semiconductor to allow for up to $7 million in incentives. As many of you know I have been writing a series of posts describing California cities desperate attempt just to keep their roads maintained. San Jose needs to spend $100 million each year over the next 10 years just to maintain the current level of road quality, but in the last few years the city has roughly averaged about $5 to $ 10 million from the general fund to maintain our roadways. So one way to look at the incentive package proposed for Samsung is about the same that the city commits to road repair each year, or about 10% of what is needed.

The fear is that Samsung will take its R&D proposal and move to Austin where they will, according to city officials offer even greater financial incentives. But Texas officials already have a track history of huge giveaways to large corporations. According to a database of state incentive packages published on the New York Times website Austin has already granted Samsung alone $232 million, through the Texas Enterprise Fund, the Tax Refund for Economic Development, and Texas' Chapter 313/Economic Development Act.

So in preparation for tomorrows meeting I have included a link to a great series of articles written by Louise Story, an investigative journalist for the New York Times. The series is titled "United States of Subsidies" and examines business incentives and their impact on jobs and local economies.

Here is a radio interview with Louise on Fresh Air with Terry Gross.