2011 Blueprint: Rebuilding Prosperity - Corporate Transparency

Rebuilding Prosperity - Corporate Transparency

Policy Options

There are several specific policies that fall into this category, including:

  • Economic Development Accountability: The legislation would establish public transparency on subsidy awards that exceed a certain amount. For each applicant and subsidy, a description of the subsidy, number of anticipated jobs created, wages and health benefits, expected tax revenue the granting agency will accrue, description of the project site, projected cost and value of the subsidy, and key events in the allocation of the subsidy would be reported publicly. An agency that grants a subsidy, in coordination with the recipient, would produce an annual and bi-annual report that includes a description of the subsidy, number of employees, their location, wage and health benefits, tax revenue the granting agency accrued, description of the project site, cost and value of the subsidy, and other key categories. The bill should also additionally include a clawback.
  • Tax Expenditure Budget: The legislation calls for a state's budget department to compile unified report of tax expenditures and property tax reductions and abatements to submit to the Governor and Legislature annually. The information would be available to the public in both written and electronic format. The legislation should also include a cost analysis and review.
  • Responsible Contracting Reform: The bill requires the contracting agency to establish measurable standards to assess the quality of contractors' performance, permit the Secretary of State and contracting agency to audit a public contact, mandate that an agency prove that they are not capable of performing the service or would incur less cost by procuring services rather than performing them in house, and provides other guidelines for contract services. Such legislation should additionally include requirements that contractors pay employees a living wage and provide benefits.



Advocates and Resources

Several allies and affiliated organizations have done extensive work on these issues. Of particular note, the following groups have provided the intellectual framework for this initiative and produced extremely insightful and comprehensive resources on the subject.