Just weeks after leaving New Jersey, where it got millions of dollars in state tax breaks aimed at economic development, the cable TV network MSNBC wants $1.5 million more from New York City for moving the same jobs to Manhattan.

The New York City Industrial Development Agency is scheduled to hold a public hearing tomorrow and to vote March 13 on a request by the cable network's parent company, NBC Universal, Inc, for a property tax abatement. New Jersey Policy Perspective submitted the following statement to be read into the hearing record by the nonprofit organization Good Jobs New York:

MSNBC left New Jersey with taxpayers holding the bag. Now the company wants breaks from New York City to move there -- after taking breaks from New Jersey for the same jobs that will be moving to Manhattan. TV-watchers are familiar with channel-surfing; this is location-surfing, another example of companies playing states or cities off against each other while seeking the best tax-break deal. The sooner that government officials catch on to this, the better it will be for taxpayers. It's happening all over the nation. No jurisdiction feels it can unilaterally disarm, but whoever makes the first move will actually be taking a major step in the right direction.

New Jersey gave MSNBC $7.8 million in breaks from one program and sold $167.5 million in bonds to purchase equipment it then leased to MSNBC -- giving up approximately $8 million in sales tax revenue. In return for these breaks granted with much fanfare in 1996, MSNBC was supposed to stay in the state for 15 years. It left after 10. Memo to New York: don't count your chickens.

"This is one more example of why government subsidies for business are questionable policy," said NJPP President Jon Shure. "There are better ways to invest in economic growth and promote prosperity, without making taxpayers pawns."

Pointing out the likelihood that the cable channel was coming to New York anyway, Bettina Damiani, Project Director of Good Jobs New York said, "MSNBC's move to the historic media location of Rockefeller Plaza isn't based on taxes, but a strategic business plan. It's unfair that NBC pits New York and New Jersey against each other and it's disappointing that New York officials reward them with another bite at the subsidy apple."

In 1996, MSNBC opened a studio and offices in Secaucus, receiving one of the first grants under New Jersey's Business Employment Incentive Program. Under terms of the BEIP award, the subsidized jobs were required to stay in New Jersey 15 years. Over a decade, MSNBC received $7.8 million from BEIP. But it didn't stay 15 years. Instead, MSNBC announced last fall that as part of a restructuring plan, it would close the Secaucus studios and move over 400 workers to NBC's headquarters in Manhattan.

According to a December 2006 settlement with the New Jersey Economic Development Authority, MSNBC owes the state $2.3 million in BEIP repayments. But no money is to actually change hands because as part of the agreement New Jersey will merely reduce any future BEIP payments to CNBC's facility in Englewood Cliffs by $2.3 million.

In other words, MSNBC is getting paid twice for the same jobs--once by New Jersey taxpayers and once by those in New York City.

In addition to the BEIP grant, New Jersey issued $167.5 million in 25-year bonds to purchase equipment it then leased to the cable channel. MSNBC avoided having to pay any sales tax on the equipment in the process.

The project description from the New York City Industrial Development Authority says MSNBC will relocate its headquarters, newsgathering and production operations, including online editorial operations for MSNBC.com, to 30 Rockefeller Plaza. According to the document, the move will involve 421 fulltime equivalent employees "currently based in the broadcaster's Secaucus, NJ facility." NBC Universal seeks a $1.5 million property tax abatement from New York City and permission to use previously authorized city and New York State sales tax exemptions in connection with renovating about 1.4 million square feet of office space.

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