New York City Hall Diverts $28 Million to Out-of-State Firms

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construction3New York City – The not-for-profits, Economic Cornerstone and the Institute for Leadership, uncovered City Hall’s outsourcing of good paying union jobs to other states such as Wisconsin, Pennsylvania, Michigan and Georgia. The work being exported involves taxpayer dollars spent by city agencies such as the New York City Housing Authority (NYCHA) and the New York City School Construction Authority (NYCSCA). In the past two years 38 of the 39 NYCSCA boilermaker projects went to Burnham, a company in Pennsylvania. Of eleven NYCHA projects over the last few years, almost all went to Burnham in Pennsylvania and none went to any New York City-based manufacturers. Maps provided by Economic Cornerstone, show four NYC-based companies capable of performing the work, each of them in communities with above average poverty levels and which would have benefited the most from the jobs lost.

$28 million left that could lift a community

Economic Cornerstone, dedicated to assisting minority companies within the NYC construction market, has calculated that nearly $28 million of taxpayer dollars has flowed out of the state from boilermaker jobs alone. “We fear this is merely the tip of the iceberg,” said Daniel Odescalchi, spokesman for Economic Cornerstone.

“We have located capable firms in the most impoverished areas in the city. If our elected officials really wanted to lift up impoverished communities, they would be spending our tax dollars here, not in other states,” said Odescalchi. The organization developed a series of maps showing the city’s most impoverished areas and the location of communities that could have benefitted from these boilermaker jobs. “It’s disheartening to see resources taken from our most impoverished area and sent to other states.”

Jobs that should belong in NYC

“This is egregious affront against our city’s workers, especially when there are many companies capable of performing the work right here in the city,” Reverend Michel Faulkner, Director of the Institute for Leadership said. “New York taxpayers are supporting jobs in other states rather than supporting New York jobs because of the delinquent judgment of our elected officials.”

The Institute for Leadership is working to provide job opportunities for New York City residents focusing on those recently released from incarceration.

Additional Info:

1.      Map showing regions in the city with the highest unemployment with companies able to do the work: