Nearly half of surveyed businesses with state grants failed to maintain jobs
HARRISBURG — More accountability is needed in programs that provide state grants and low-interest loans to companies that promise to create jobs, Pennsylvania’s top auditor said Wednesday
Auditor General Eugene DePasquale released a special performance audit of $213 million in grants and loans awarded to 600 employers between 2007 and 2010. The audit examined Department of Community and Economic Development records to judge how well those companies complied with their contracts since then.
DePasquale said his auditors found that 56 percent of the businesses created or retained all the jobs they promised in exchange for state assistance.
“That means that nearly half of the businesses we reviewed failed to create or retain the jobs as promised,” he said.
