On June 3, 2022, Bruce Krasnow with the New Mexico Economic Development Department announced the award of over one million dollars in job training funds.
New Mexico’s Job Training Incentive Program (JTIP) was originally launched in 1972 as the Industrial Development Training Program and has evolved over its lifespan. JTIP claims to have supported the creation of more than 1,600 training projects and nearly 47,000 jobs.
Recipients of the latest round of job training funds includes the Boeing Company, Rural Sourcing, and X-Bow Launch Systems. Boeing was awarded $43,317.56, Rural Sourcing was awarded $95,268, X-Box Launch Systems was awarded $415,880.56.
The JTIP program reimburses 50-75% of employee wages for on-the-job training and for newly-created jobs in expanding or relocating businesses for up to six months.
Why is New Mexico state government subsidizing billion-dollar companies like Boeing at all?
The recurring problem of taxpayer-funded corporate welfare in New Mexico is nothing new. A film production company that meets the requirements of the Film Production Tax Credit Act may apply for a tax credit in an amount equal to twenty-five to thirty-five percent of qualified spends made in New Mexico.
This enables wealthy Hollywood filmmakers to make million-dollar profits off the backs of hardworking New Mexico taxpayers. And those profits are reported after the opaque and creative Hollywood accountants have their way with bookkeeping for their projects.
Similarly, Spaceport America capitalizes on taxpayer subsidies to attract large firms like Virgin Galactic with a project cost of over $275 million dollars. As of July, 2021, Spaceport America revenues approach only $54.3 million for the state over the last 12 years.
Taxpayers foot the bill for corporate welfare without any guarantee of a return on their investment. The worst part is, these billion-dollar companies are taking advantage of taxpayer-funded subsidies in one of the poorest states in the country. In 2019, the state suffered from one of the highest poverty rates in the nation.
Boeing reported $62.29 billion in revenue in 2021 yet was still selected for a JTIP payout. Meanwhile, New Mexicans were handed a measly tax rebate check for up to $750 (or $1,500 for families).
The impact of corporate welfare through subsidy programs like the film credit and JTIP disproportionately affects impoverished communities and the economically disadvantaged, further exacerbating the economic inequity that the liberal-progressive left loves to hate.