Cuomo’s Yahoo Deal Shows How New York Picks Winners and Losers, With more losers by far

Yahoo Center in Lockport got $30 million in tax breaks, which means, with the savings, that it will pay what it would have paid in many other low taxed states.

Yahoo Center in Lockport got $30 million in tax breaks, which means, with the savings, that it will pay what it would have paid in many other low taxed states.

In New York State, if the governor doesn’t pick you as a winner, you’re a loser.

This is well demonstrated by the Yahoo! deal in Lockport.

In 2013, the $45 billion Yahoo Inc. negotiated an incentives package with Gov. Andrew Cuomo worth about $30 million in county, state, sales and property tax breaks, credits against state income taxes, and 7,200 kilowatts of half-priced electricity from the New York Power Authority.

In return, Yahoo promised to expand its data center in the Town of Lockport’s IDA Park, add a customer call center and employ 192 employees by 2019.

The $30 million in incentives –subsidized by taxpayers – who will have to pay what Yahoo will not – were said to be needed to encourage Yahoo’s expansion and create jobs.

Before blaming the giant multinational technology company for seeking a package at the cost of taxpayers here, one should consider the economic climate in New York.

For instance, while half-price New York Power Authority hydroelectricity sounds like a deal for Yahoo, it only means Yahoo will pay about the same rates for electricity that much of America pays without breaks.

According to Electric Power Monthly, in February, 2013, when Yahoo struck the deal, New Yorkers paid 18.89 cents per kilowatt hour for residential electrical use and 15.50 for commercial.

The national average was 11.61 and 10.04.

Since Yahoo, like many companies, uses a lot of electricity, a clue to the problems facing Western New York job development are revealed by this.

It is an irony, but, despite the fact that 70 percent of the profit the New York Power Authority earns comes from hydropower generated from the Niagara, local residents do not use locally produced inexpensive hydropower.

The governor does not allow it.

Neither do businesses here use local hydropower, unless the governor, who controls all of Niagara’s hydropower by the fact that he controls the appointments to the board of directors of the New York Power Authority, decides to give a business “low priced electricity” which, as explained above, is just normally priced electricity almost anywhere else.

Without special intervention from the governor, new businesses dependent on high electricity usage cannot expand in Western New York because of high electricity rates.

This is ironic, since low-cost hydroelectricity is generated here.

It is ironic because before New York State took control of Niagara’s hydropower in 1957, the region had abundant inexpensive hydropower generated locally.

The region was prosperous, industry flocked here to take advantage of low cost power and Niagara Falls was dubbed the “Power City.”

Within a few years of State took control of hydropower, locals no longer used local hydropower, and the governor decided which business would get hydropower. Most of it was delivered to New York City and eight other states.

Not surprisingly, State management of the hydropower resulted in the creation of patronage jobs and there was no longer low cost hydroelectricity for anyone in the state.

Unless of course the governor decided to simply reduce the price for some companies he choose as his winners.

The region and particularly Niagara Falls went broke. It lost 35,000 industrial jobs that were dependent on low cost power which they could no longer depend on. But that is another story for another day.

The governor bought back 115 jobs by giving some half price power to Yahoo.

He had to do more for his winner: On top of high electrical rates, New York State residents and businesses pay the highest state taxes in the USA, and Niagara County property owners pay among the highest property taxes in the U.S. in proportion to the value of their property, according to the Tax Foundation of Washington, D.C.

By giving Yahoo $2 million off their state income tax, and 10 years of zero property taxes, the giant internet corporation will not have to pay the highest taxes that the average small business and homeowner pay in the region.

But, the argument is, (since taxes are so high) if New York State government didn’t give tax breaks, why would a business choose to locate or expand here? They could go to any other state and pay less taxes and lower electricity rates.

In New York, economic development is simply the governor picking the winners and the rest of the state’s overburdened taxpayers remain as losers.

This may be why New York is the fastest shrinking state in the nation.

In Yahoo’s case, what the governor did was reduce taxes and electricity rates enough so that Yahoo will pay what it would pay in most other states without tax and other incentives.

At some point the people will elect a new breed of government officials who will not pick winners and losers but will know that lowering taxes is the best form of economic development – and is fairest to all.

Still, when government picks winners and losers, there is yet another winner: the government officials who get to claim credit for the successes of the winners while ignoring the losers who fail or leave the state.

By keeping taxes and electricity rates high for the masses, the governor gets to choose who is beholden to him.

In a low taxed state, a governor has no such power.

This right to pick winners in New York has become our version of economic development;

It is a special privilege of the governor – since, by state law, the governor has a uniquely powerful role, one rivaling in power that of a third world dictator: He controls the hydroelectricity in the state – and through a variety of state entities – and complicated programs, he controls vast amounts of taxpayer money he can hand out to winners and the authority to offer tax breaks to other winners who might otherwise have to pay the oppressive taxes the masses and most businesses have to pay.

The governor of New York can unilaterally reward his winners with bounties from the crown.

And that my friends is power.

And who but an honest man would give that up and advocate for tax decreases?

But we have digressed from the Yahoo deal.

Emblematic of the governor as dictator in New York, after agreeing to grant Yahoo a $30 million incentives package in 2013, Gov. Cuomo required Yahoo to ‘tithe’ back $500,000 a year for seven years (total $3.5 million) which would go to various not for profits in the area.

But who gets to pick the winners and losers?

Cuomo appointed Sam Hoyt, regional president of his Empire State Development agency (which gives subsidies and tax breaks to developers the governor chooses to be winners), to oversee the Yahoo charity money.

The Community Foundation of Greater Buffalo was designated to monitor the money.

Just last week Governor Cuomo announced to great fanfare the grant recipients of the Yahoo Community Benefit Fund for the year.

But who did the actual choosing of the winners?

According the website of the Community Foundation of Greater Buffalo, grant awards are determined by the Yahoo Community Benefit Fund Resident Advisory Council, whose members are not named on the website.

It specifies that organizations must be non-profit entities and that funds are not be used for partisan political activity or for “propaganda or otherwise attempting to influence legislation (lobbying).”

Ironically, team Cuomo had a major hand in doling out the awards to local non-profit organizations, which are composed, by the way, of sincere and grateful members who don’t forget to vote.

Lieutenant Governor Kathy Hochul announced the awards at an event attended by the press at the Yahoo Data Center in Lockport for Stella Niagara, the Cornell Cooperative Extension, the YWCA, NCCC, the Lumber City Development Corporation and others.

Governor Cuomo declared triumphantly for the media, “The most successful investments support the growth of the community as well as businesses, and the state’s partnership with Yahoo does exactly that… The recent revitalization of Western New York is sustained by locally-developed, innovative ideas.”

Cuomo appointee, Howard Zemsky, President of Empire State Development, added inspiring words about the relatively small amounts (compared to the $30 million Yahoo got) doled out to various not for profits, “With the Yahoo Community Fund for Niagara County, ESD has forged a partnership with Yahoo to give back to the region where Yahoo’s facilities are located. The projects awarded today were specifically chosen because they align with the WNYREDC’s economic development strategies in the region and will benefit community organizations that work in Niagara County.”

The Cuomo administration’s role in allocating the hand-outs, which were explicitly said to not be used for political purposes, became political purpose for the governor who the money as a media, public relations and community relations opportunity.

Paul Bonaro, the Senior Director of Yahoo Data Center Operations, whose company had no role in the selection of the winners, spoke of team Cuomo and the community:

“At Yahoo, we know that our success in Western New York is a direct result of the talented workforce, business-friendly environment and access to renewable energy resources. That’s why we’re proud to give back to help keep the region strong. We welcome the announcement today from Lt. Governor Hochul and Empire State.”

The next round of annual funding with its picking of winners will begin in the spring of 2017, with $250,000 available.

Below are some of the past winners:

A review of these will show that Cuomo has picked his winners well as he converted this Yahoo fund into a virtual pork fund to offer small sums to practically every major not for profit in the area, all of whom need money and all of whom know it was not Yahoo but Cuomo and his team that got the job done.

Buffalo Federation of Neighborhood Centers $38,000

Back on Track CLC of ONE $15,658;

Friends of the Lockport Public Library $10,166

Heart of Niagara Animal Rescue, Inc. $14,431.55

Historic Lockport Mill Race Corporation $14,000

Isaiah 61 Project, Inc. $25,000

Lockport Expansion Pilot Lockport Main Street, Inc. $35,000

New Directions Youth and Family Services, Inc. $40,000

Elks Camp Happiness $15,000

St. John the Baptist Parish $14,500

Western New York Land Conservancy $26,000

Dale Association, Inc. $5,000

DeSales Catholic School $17,787.

Episcopal Diocese of Western New York $18,500 Historic Palace Inc. $30,000

Literacy New York Buffalo – Niagara, Inc. $10,000 Niagara County Lockport CARES, Inc. $8,800

Lockport Ice Arena and Sports Center, Inc. $24,750

Lockport Locks Heritage District Corp. $42,000

Flight of Five Interpretation Lockport Robotics, Inc. $5,000

Niagara Cerebral Palsy $9,729.50

Niagara County Historical Society $4,771

Youth Mentoring Services of Niagara County, Inc. $6,703.15

YWCA of the Niagara Frontier $40,000.


  1. “Paul Bonaro, the Senior Director of Yahoo Data Center Operations, whose company had no role in the selection of the winners…”

    This is completely false. Yahoo had the majority of the decision making power as to what organizations were selected to receive funding. There were multiple meetings at Yahoo between company management and Community Foundation of Greater Buffalo. Nobody from ESD was there.

    Yes, Yahoo got tax breaks. To build on empty land in the Town of Lockport that has been completely empty and generating zero tax revenue for years. Nobody was building there, nobody was going to build there.

    The fact that SOME tax revenues are now being generating is a huge win, not to mention the local people like myself who didn’t have to move away because we now have a good paying job.

  2. Thanks for sharing your thoughts on ig. Regards

  3. Great write-up, I am normal visitor of one’s blog, maintain up the nice operate, and It’s going to be a regular visitor for a long time.

  4. I’m now not certain where you’re getting your info, however great topic.
    I must spend some time learning much more or
    understanding more. Thank you for wonderful info I used to be in search of this information for my mission.

  5. Magnificent goods from you, man. I have understand your stuff prior to and
    you are simply too excellent. I really like what you’ve obtained right here, certainly like what you
    are saying and the way in which by which you say it. You make it entertaining and you still
    take care of to keep it wise. I cant wait to read far more
    from you. This is really a wonderful site.

  6. Appreciating the commitment you put into your site and detailed information you offer.
    It’s good to come across a blog every once in a while that isn’t
    the same out of date rehashed information. Excellent read!
    I’ve bookmarked your site and I’m including your RSS feeds to my Google account.

  7. L’article est très bien écrit. Est-ce qu’il est possible d’utiliser une partie de cette information

  8. Stunning story there. What occurred after? Thanks!

  9. Along with almost everything which seems to be developing within this particular subject material, all your perspectives are somewhat exciting. Even so, I beg your pardon, but I do not subscribe to your entire strategy, all be it radical none the less. It seems to me that your commentary are actually not completely rationalized and in reality you are generally your self not even wholly convinced of the point. In any event I did appreciate reading through it.

  10. We are a bunch of volunteers and opening a brand new scheme in our
    community. Your site provided us with useful information to work on.
    You’ve done a formidable activity and our entire community will be grateful to you.

  11. I was curious if you ever considered changing the
    page layout of your blog? Its very well written; I love
    what youve got to say. But maybe you could a little more in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having 1 or two pictures.
    Maybe you could space it out better?

  12. Hello colleagues, nice paragraph and nice arguments commented here, I am genuinely enjoying by

  13. Whoa! This blog looks exactly like my old one!

    It’s on a totally different topic but it has pretty much the same page layout and design. Great
    choice of colors!

  14. Howdy! I know this is kind of off topic but I was wondering if you knew where I could get a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

  15. I would like to express appreciation to you just for bailing me out of this particular difficulty. As a result of looking out throughout the internet and seeing notions that were not beneficial, I was thinking my entire life was over. Being alive devoid of the answers to the issues you have solved by means of the guide is a serious case, as well as those that might have badly damaged my career if I hadn’t noticed the blog. The know-how and kindness in controlling all the things was very helpful. I am not sure what I would’ve done if I had not discovered such a subject like this. It’s possible to at this time look forward to my future. Thanks for your time very much for your professional and sensible guide. I won’t think twice to propose your web blog to any person who requires counselling about this subject. visit here – alternative medicine

  16. Have you ever considered about including a little bit more than just your articles?
    I mean, what you say is valuable and all. Nevertheless think
    of if you added some great visuals or video clips
    to give your posts more, “pop”! Your content is excellent but with images and clips, this site could undeniably
    be one of the best in its niche. Excellent blog!

  17. Hi there mates, how is all, and what you wish for to say concerning this paragraph, in my view its really amazing for me.

  18. Nice post. I learn something new and challenging
    on websites I stumbleupon every day. It’s always useful to read through articles from other writers
    and practice something from other websites.

  19. I’ve read some just right stuff here. Certainly worth bookmarking for revisiting.
    I surprise how much effort you set to create this type of wonderful informative site.

  20. Hi there, after reading this awesome post i am as
    well delighted to share my experience here with colleagues.

  21. Hi, just wanted to say, I loved this post. It was inspiring.
    Keep on posting!

  22. I do not even know how I ended up here, but I thought this post was good.
    I don’t know who you are but certainly you are going
    to a famous blogger if you aren’t already 😉 Cheers!

  23. Hello, all the time i used to check web site posts here early in the daylight, because
    i love to learn more and more.

  24. Fantastic post however , I was wanting to know if you could
    write a litte more on this topic? I’d be very thankful if
    you could elaborate a little bit more. Many thanks!

  25. Hi, Neat post. There is an issue together with your web site in web explorer, would test this?
    IE still is the market leader and a huge section of folks will omit your great writing due
    to this problem.

  26. I’ve been browsing on-line more than 3 hours as of late, but I never discovered
    any attention-grabbing article like yours.
    It’s pretty value sufficient for me. In my view, if
    all webmasters and bloggers made excellent content material as
    you did, the internet might be a lot more helpful than ever before.

  27. I all the time used to read article in news papers but now
    as I am a user of web so from now I am using net for articles or reviews, thanks to web.

  28. best buy isotretinoin [url= ]cialis[/url] Come Comprare Viagra Su Internet
    Acheter Cialis En Ligne Quebec Viagra Generico Online Spedizione Rapida Amoxil 250 Mg
    Viagra Vs Cialis Vs Levitra Reviews cialis Priligy 120 Mg

  29. What’s Going down i am new to this, I stumbled upon this I have discovered It absolutely useful and it has
    aided me out loads. I hope to contribute & aid different users
    like its aided me. Great job.

  30. I’m truly enjoying the design and layout of your website.
    It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme?
    Exceptional work!

  31. It’s fantastic that you are getting thoughts from this piece of writing as
    well as from our discussion made at this time.

  32. I have been browsing online more than 2 hours today, yet I never found any interesting article
    like yours. It’s pretty worth enough for me. In my view, if all
    web owners and bloggers made good content as you did, the internet will be a lot more useful than ever

  33. Hello there, You have done a great job. I will certainly digg it and personally recommend to my friends.

    I’m confident they will be benefited from this web site.

  34. Excellent web site. A lot of useful info here. I’m sending it to
    some buddies ans also sharing in delicious. And naturally,
    thanks in your sweat!

  35. Wonderful post! We are linking to this great article on our website.

    Keep up the good writing.

  36. I got this site from my pal who shared with me about this web site and at the moment this
    time I am browsing this website and reading very informative articles here.

  37. Do you have any video of that? I’d care to find out some additional information.

  38. Fabulous, what a blog it is! This blog provides useful
    information to us, keep it up.

  39. When some one searches for his necessary thing, thus he/she needs to be available that in detail, thus that thing is maintained over here.

  40. Very nice post. I just stumbled upon your blog and
    wanted to say that I have really enjoyed browsing your
    blog posts. After all I’ll be subscribing to your feed and I hope you write again very soon!

  41. Hi, its fastidious post regarding media print, we all be familiar with media
    is a great source of facts.

  42. Informative article, totally what I wanted to find.

  43. Hey! I realize this is kind of off-topic however I
    had to ask. Does operating a well-established blog like yours require a massive amount work?
    I am completely new to blogging but I do write in my diary on a daily
    basis. I’d like to start a blog so I can share my experience
    and thoughts online. Please let me know if you have any suggestions or tips for brand new aspiring blog owners.
    Appreciate it!

  44. This blog was… how do you say it? Relevant!! Finally I’ve found something which helped me.
    Thanks a lot!

  45. Incredible points. Sound arguments. Keep up the great effort.

  46. each time i used to read smaller articles or reviews that as well clear their motive, and that is also happening with this post which I
    am reading here.

  47. Wonderful beat ! I wish to apprentice whilst you
    amend your web site, how could i subscribe for a blog site?
    The account aided me a applicable deal. I have been tiny bit acquainted of this your broadcast
    offered shiny clear idea

  48. Hello to all, the contents existing at this web
    page are really amazing for people experience, well, keep up the good work fellows.

  49. These are genuinely fantastic ideas in regarding blogging.
    You have touched some fastidious points here. Any way keep up wrinting.

  50. I read this paragraph completely on the topic of the difference of
    most recent and earlier technologies, it’s amazing article.

  51. This is really fascinating, You’re an excessively skilled blogger.
    I have joined your rss feed and stay up for in quest of more of your great
    post. Also, I have shared your site in my social networks

  52. It is not my first time to go to see this web site, i am browsing this site dailly and take nice information from here daily.

  53. Appreciating the commitment you put into your
    site and detailed information you present. It’s nice to come across a
    blog every once in a while that isn’t the same outdated rehashed material.
    Excellent read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google

  54. Pretty section of content. I just stumbled upon your web site and in accession capital to assert
    that I get in fact enjoyed account your blog posts.
    Any way I’ll be subscribing to your feeds and even I achievement you access consistently quickly.

  55. Fantastic web site. Plenty of helpful information here.
    I’m sending it to some buddies ans additionally sharing in delicious.
    And naturally, thanks on your effort!

  56. Howdy! I could have sworn I’ve been to this web site before but after going through a few
    of the posts I realized it’s new to me. Regardless,
    I’m certainly happy I discovered it and I’ll be book-marking it and checking back frequently!

  57. Hi there! I could have sworn I’ve been to this website before but after reading through some of the post I realized
    it’s new to me. Anyways, I’m definitely glad I found it and I’ll be book-marking and checking back often!

  58. Can you tell us more about this? I’d care to find out some additional information.

  59. You can certainly see your enthusiasm in the work you write.
    The arena hopes for more passionate writers
    such as you who aren’t afraid to mention how they believe.
    At all times follow your heart.

  60. Hi there to every body, it’s my first visit of this weblog;
    this web site includes amazing and truly good stuff designed for

  61. Everything is very open with a very clear clarification of the issues.
    It was truly informative. Your site is very
    helpful. Many thanks for sharing!

  62. For the reason that the admin of this web site is working, no
    doubt very soon it will be well-known, due to its feature contents.

  63. I need to to thank you for this great read!! I absolutely enjoyed every bit of it.
    I have you bookmarked to check out new things you post…

  64. This is my first time go to see at here and i am really impressed to read all at alone place.

  65. You really make it appear really easy with your presentation however I to
    find this topic to be actually something which I believe I might by no means understand.
    It kind of feels too complex and extremely large for me.
    I am looking forward in your next publish, I’ll try to get the
    hold of it!

  66. My programmer is trying to persuade me to move to .net from
    PHP. I have always disliked the idea because of the expenses.

    But he’s tryiong none the less. I’ve been using Movable-type on numerous websites
    for about a year and am anxious about switching to another platform.
    I have heard very good things about Is there a way I
    can import all my wordpress content into it? Any kind of help would be really appreciated!

  67. I know this site gives quality based articles or reviews and additional information,
    is there any other web page which offers these kinds of stuff in quality?

  68. Yes! Finally something about traveling wilburys.

  69. Magnificent website. Lots of helpful information here.
    I’m sending it to some friends ans additionally sharing in delicious.
    And naturally, thank you on your sweat!

  70. What’s up colleagues, its enormous paragraph on the topic of teachingand entirely defined,
    keep it up all the time.

  71. Good day! This is my first comment here so I just wanted to give
    a quick shout out and say I truly enjoy reading through your posts.
    Can you recommend any other blogs/websites/forums that go over the
    same subjects? Thanks a ton!

  72. This is a good tip especially to those new to the blogosphere.

    Short but very precise info… Many thanks for sharing this one.
    A must read post!

  73. I visited various web pages however the audio
    feature for audio songs present at this web site is truly

  74. Hi there everybody, here every one is sharing these kinds of
    knowledge, thus it’s good to read this webpage, and I used to visit this
    blog daily.

  75. This piece of writing is truly a fastidious one it assists new net
    viewers, who are wishing for blogging.

  76. Nitrofurantoin KamagraРІВ® Propecia En Jovenes [url= ]cialis[/url] Cheap Femara Without Prescription Thyroxine Online No Prescription

  77. I am really inspired together with your writing skills and also with the
    layout in your blog. Is this a paid theme or did you modify it yourself?
    Anyway keep up the excellent high quality writing, it is
    uncommon to look a nice blog like this one these days..

  78. Howdy, I do think your web site may be having browser compatibility problems.
    When I take a look at your blog in Safari, it
    looks fine however when opening in Internet Explorer,
    it’s got some overlapping issues. I just wanted to provide you with a
    quick heads up! Apart from that, wonderful site!

  79. Amazing! Its genuinely amazing post, I have got much clear idea on the topic of from this post.

  80. You’re so awesome! I do not suppose I have read a single thing like that before.
    So nice to find someone with a few original
    thoughts on this subject. Really.. thanks for starting this up.
    This site is one thing that is required on the internet, someone with
    a bit of originality!

  81. Link exchange is nothing else except it is only
    placing the other person’s blog link on your page at appropriate place and other person will also do same
    in favor of you.

  82. I think this is among the most vital information for me.

    And i am glad reading your article. But wanna remark on few
    general things, The website style is great, the articles is
    really excellent : D. Good job, cheers

  83. I visited many sites however the audio feature for audio songs current at this web page is
    in fact wonderful.

  84. Howdy! I understand this is somewhat off-topic but I needed to ask.

    Does operating a well-established blog like yours
    take a massive amount work? I’m brand new to operating a blog however I do write in my diary every day.
    I’d like to start a blog so I can easily share my experience and thoughts online.
    Please let me know if you have any ideas or tips for new aspiring bloggers.
    Appreciate it!

  85. Bentyl Find No Prior Script [url=]generic cialis[/url] Thyroxine Medication Online

  86. Viagra Farmacia Madrid Kamagra Oral Jelly Erfahrung Buy Viagra With Debit Card [url=]generic cialis[/url] Propecia Hormone Prix Du Propecia En France

  87. Very descriptive article, I enjoyed that a lot. Will there be a
    part 2?

  88. It’s really a nice and helpful piece of information. I am satisfied that
    you shared this useful information with us. Please stay us up to date like this.
    Thank you for sharing.

  89. Peculiar article, just what I needed.

  90. Great post! We will be linking to this great content
    on our website. Keep up the good writing.

  91. Hey there! This post couldn’t be written any better!

    Reading through this post reminds me of my good old
    room mate! He always kept talking about this.
    I will forward this post to him. Pretty sure he will
    have a good read. Thanks for sharing!

  92. Everything is very open with a precise description of the issues.
    It was really informative. Your site is very
    useful. Thanks for sharing!

  93. Why visitors still use to read news papers when in this technological globe the
    whole thing is available on net?

  94. I enjoy what you guys are up too. This sort of clever work and reporting!
    Keep up the wonderful works guys I’ve added you guys to my personal

  95. Keflex With Doxycycline Together [url=]generic viagra[/url] Real Propecia Report

Leave a Reply

Your email address will not be published. Required fields are marked *


Scroll Up.wpzoom (color:black;}