Report: Tax breaks costing schools big money

Public schools across the state are losing out on close to $2 billion a year — and probably a whole lot more — because of tax breaks given to corporations by economic development agencies.

That’s among the conclusions of a study released today by Good Jobs First, a national research group that tracks economic development subsidies. The report said tax breaks affecting schools in New York far outpace those in other states.

That lost revenue has prompted state lawmakers, including Sen. Sean Ryan, to propose legislation that would prohibit economic development agencies from abating property and sales taxes that are due school districts.

“I believe we put ourselves in this position with our [IDAs] where they were trading school funding and kids futures, you know, to make speculative business deals,” Ryan said in a recent interview with Investigative Post.

Overall, the report found, New York schools lost $1.8 billion in revenue in the 2021 fiscal year, all thanks to state and local tax subsidies to corporations. 

The report understates the amount of money schools are losing out on because only about half of districts self-reported in annual financial statements how much revenue they lost because of tax abatements.

Some recent big-ticket tax subsidies also aren’t accounted for. They include $124 million in tax breaks for an Amazon warehouse in Niagara County and even larger tax abatements for a proposed Micron semiconductor plant near Syracuse.

The $1.8 billion that was reported amounts to about 5 percent of the state’s $34.4 billion aid to schools. The report notes the money New York schools lose each year to tax abatements ranks the state first in the nation for lost revenue. South Carolina ranks second. 

The data, however, was especially limited in Western New York, as only 13 of 100 school districts in the eight counties reported revenue losses.

Warsaw Central School District in Wyoming County lost more money per student than any local district. It lost $2.7 million in revenue during the 2021 fiscal year, or $3,189 per student.

Another Wyoming County’ district, Letchworth Central Schools, lost $2.4 million, or $2,687 per student.

In Chautauqua County, the Dunkirk City School District lost $4.8 million, or $2,400 per student.

Good Jobs First estimated that Buffalo schools lost between $1.5 and $2.5 million, due to property and sales tax abatements issued by the Erie County IDA and city development agencies. 

Overall, public schools in Western New York lost between $16.9 million and $17.9 million to tax abatements in the 2021 fiscal year. Again, that’s with only 13 of 100 districts reporting.

“Even though they are typically the biggest losers of revenue to abatements, New York school districts have no formal authority to interject themselves into IDA negotiations,” the report states.

Across the state, 37 districts lost out on $1,000 or more in funding per student. The state average for all districts is a loss of $541 per pupil. New York spends on average about $14,000 per student. 

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The report comes on the heels of state Ryan and state Assemblyman Harry Bronson proposing legislation that would prohibit IDAs from giving out tax subsidies that affect school revenue. Such legislation could upend how IDAs operate, as the largest portion of IDA tax breaks are discounts on property taxes, and most school districts fund their budgets primarily through property taxes.

Ryan, who is scheduled to take part in a press event with Good Jobs First on Wednesday in Albany, argued recently that reducing the power of IDAs to abate taxes would not only help students, but possibly save taxpayer dollars. When IDAs reduce school district budgets, he said, district leaders turn to the state to make up the difference.

​​”But as the IDAs keep exempting large payers from taxes, it just means the state portion has to grow,” he said. “It's almost like we're taking money out of one pocket and putting it into the next pocket.”

The report concludes that “problems with New York State IDAs are numerous and persistent.” Good Jobs First recommends abolishing IDAs altogether or significantly reforming them.

“Short of [elimination] we recommend prohibiting IDAs from entering into agreements that abate school tax revenues,” the report states. “The alternative is the status quo: ever-higher property tax rates on New York residents to mask the large and rising costs of corporate tax abatements.”


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Additional recommendations for reform include giving labor unions, community groups, education professionals and affordable housing advocates positions and veto powers on IDA boards.

Good Jobs First has also called on state Comptroller Thomas DiNappoli to better track lost school revenue.

Ryan, for his part, is sponsoring Senate Bill 89. The Buffalo Democrat wants to bring the bill to a vote this spring, after the Legislature enacts a state budget in April.

“I think we can get agreement around it,” Ryan said. “IDAs kind of operate in the shadows.”

The post Report: Tax breaks costing schools big money appeared first on Investigative Post.

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Mushroom farming hit by urgent labor shortage amid immigrant deportations



By Hazel Velasco Palacios, Penn State and Kathleen Sexsmith, Penn State

“I had never worked with mushrooms before,” Luis said, reflecting on his time in Chester County’s mushroom industry. “But my family has always worked in agriculture, so I like it. I’m used to hard work.”

Luis, whose name is a pseudonym to protect his identity, is part of the latest wave of immigrant workers who have, for decades, come to Chester County to work in Pennsylvania’s US$1.1 billion mushroom industry. He is a Venezuelan migrant who was granted Temporary Protected Status, or TPS, under the 2023 designation. TPS allows foreign nationals already in the U.S. to remain for six, 12 or 18 months – regardless of how they entered – if their home country is deemed too dangerous for them to return.

In February 2025, President Donald Trump terminated TPS for Venezuelans who received protection under the 2023 expansion. According to the Department of Homeland Security, this designation had allowed approximately 348,000 Venezuelans to remain in the U.S. legally, with many eligible for work authorization. Meanwhile, Venezuelans who were granted TPS under the earlier 2021 designation can retain their status until Sept. 10, 2025. This provides temporary relief but leaves their long-term status uncertain.

We are rural sociologists – a Penn State professor and a Ph.D. candidate – who study labor, migration and agriculture in the U.S. Our research examines how industries such as mushroom farming maintain a stable workforce. One of us recently published an article in the peer-reviewed journal Rural Sociology that highlights how Pennsylvania’s mushroom industry was already struggling with a labor shortage.

The termination of TPS for many Venezuelans, along with President Donald Trump’s broader immigration policies – including stricter border enforcement, increased deportations and tighter restrictions on work permits and asylum protections – will likely shrink the pool of available workers in Pennsylvania’s mushroom industry and other agricultural and food industries.

Photo of a water tower with 'Kennett Square Mushroom Capital of the World' painted on it

Kennett Square, Pa., bills itself as the ‘mushroom capital of the world.’

Nolabob/Wikimedia Commons, CC BY-SA

Changing face of the mushroom workforce

The mushroom industry in Pennsylvania has been shaped and sustained by major waves of U.S. immigration since the late 19th century.

William Swayne, a Quaker florist, is credited with beginning mushroom cultivation in Kennett Square, a small borough in Chester County, in the 1880s.

However, it was Italian immigrants, who began arriving in the early 20th century, who transformed Kennett Square into the “mushroom capital of the world.”

Today, Pennsylvania produces 69% of all mushrooms sold in the U.S.

According to the U.S. Department of Agriculture, Chester County alone produced 199 million pounds of mushrooms – mostly white button mushrooms – in the 2023-24 season. While Chester County remains the hub of production, mushroom farms also extend into adjacent Berks County and parts of northeastern Maryland.

Yet, workforce instability remains a pressing issue, as the industry has struggled for decades to recruit and retain workers.

Mushroom picking is physically demanding. Workers in humid, enclosed growing rooms carefully harvest delicate mushrooms by hand to prevent bruising. Pay is structured around a piece-rate system, where earnings depend on speed and productivity. While this model allows some workers to earn more, it also creates instability, as take-home pay fluctuates based on harvest conditions and market demand. These factors make it difficult to maintain a stable workforce.

As a result, mushroom production in Pennsylvania is highly dependent on immigrant labor. While there are no national statistics tracking the nationalities of workers in the industry, our empirical studies and ongoing field research indicate that most of today’s workers are from Mexico and Guatemala. In recent years, more have arrived from Venezuela and elsewhere.

Many of these newer arrivals have entered the U.S. through programs such as TPS and the Processes for Cubans, Haitians, Nicaraguans and Venezuelans, or CHNV. CHNV allows certain people from those four countries who have a sponsor in the U.S. and who pass a background check to live and work in the U.S. for two years. It was established to grant temporary work authorization to individuals fleeing crises in their home countries.

TPS and CHNV have been instrumental in addressing labor shortages in essential U.S. industries such as agriculture.

At the same time, the long-standing Mexican mushroom workforce is undergoing a generational shift and aging out of field labor. Their U.S.-born children sometimes work harvesting jobs in their teens but are unlikely to stay in agriculture long term.

Rise of mushroom labor contractors

To fill employment gaps, many mushroom farms now turn to labor contractors to recruit, manage and employ workers.

Contractors typically handle payroll, workers’ compensation and access to medical care if someone is injured.

On the surface, this system offers benefits for growers. It allows them to adjust their workforce depending on demand while reducing administrative burden and liability.

But for workers, this system can be a double-edged sword.

Evidence from other agricultural industries shows that workers hired through contractors may have less job security, fewer or no benefits, and less direct contact with farm owners – which makes it more difficult to negotiate wages or report workplace concerns.

Some Kennett Square farmworkers we have interviewed see contractors as a source of flexibility.

“I had to miss work for some weeks because my kid was sick, and I lost my spot,” one worker shared. “But then I reached out to a contractor and was able to get another job at a different farm within a day.”

However, that same worker went on to say that this new farm “has wider harvesting beds, and I am getting more tired and have more pain because of it.”

In other words, while labor contractors provide continuity in employment, workers may have less control over where they are placed or the conditions they work under.

For growers, contractors serve as an effective stopgap to keep mushroom farms in operation, but they do not solve their ongoing problem of attracting long-term employees.

Fewer workers, more expensive mushrooms

With fewer workers, mushroom farms may struggle to meet the demand from grocery stores, restaurants and food processors.

A reduced supply could mean customers pay more for mushrooms at grocery stores and restaurants. If retailers must source mushrooms from other states or abroad, prices could rise further due to transportation expenses, tariffs and supply chain disruptions.

Without policies that recognize the industry’s year-round labor needs, Pennsylvania mushroom growers will be left scrambling for alternative workforce solutions.

Lawmakers have attempted to address this issue through the Farm Workforce Modernization Act of 2021, which passed the House but stalled in the Senate. If enacted, the bill would create a Certified Agricultural Worker status, which would offer legal protection to experienced farmworkers, and expand H-2A visa eligibility to agricultural workers in year-round jobs such as mushroom farming. The bill also includes a mandatory phase-in of E-Verify for agricultural employers, a federal system used to confirm workers’ legal authorization to work in the U.S.

For now, mushroom farms – and the broader agricultural sector – must prepare for the ripple effects of more rigid immigration restrictions. Without intervention from policymakers, the strain on workers, growers and consumers is likely to intensify.

Read more of our stories about Pennsylvania.The Conversation

Hazel Velasco Palacios, Ph.D. Candidate in Rural Sociology & Women's, Gender and Sexuality Studies, Penn State and Kathleen Sexsmith, Assistant Professor of Rural Sociology, Penn State

This article is republished from The Conversation under a Creative Commons license. Read the original article.