'It looks like they're about 800 short,' Dutchess County legislator says
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April 13, 2009
As IBM released its local employment numbers last week, spokesman Jeff Couture pointed out that it's the first time Big Blue has provided a statewide head count.
"We think this is an important number to have," Couture said, "as it reflects the way IBMers work today — much more interconnected, with much more flexibility and less located at specific facilities."
Couture said the "more relevant information" is the number of IBMers who work in a particular state — 20,300 in New York — and the company's worldwide head count of nearly 400,000.
Dutchess County taxpayers might disagree.
Big Blue says it employed 10,700 in Dutchess last year, which is about 900 fewer than in 2007. Last June, the Dutchess County Industrial Development Agency gave IBM its third five-year extension on 1993 abatements of the 4 percent state sales tax and a partial abatement of the county's 3.75 percent tax, both of which are contingent upon local employment thresholds.
According to Dutchess County Legislator Joel Tyner, IBM's latest numbers indicate it has missed the current target of 11,517. "It looks like they're about 800 short," Tyner said. "Maybe they need to start paying some of that money back to the taxpayers of Dutchess County or at least have it discontinued."
Couture offered an explanation: "My understanding is the amount of any tax abatement is dependent on IBM's investment in a Poughkeepsie data center project and our employment levels. For example, based on our implementation of phase one of the data center, if IBM's Dutchess County population is between 0 and 11,516, then our sales tax rate is 3.75 percent. If it is higher than 11,516, then the rate is lower."
Dutchess County IDA Chairman Michael Tomkovitch did not return a phone call.
Tyner said he will contact his fellow legislators to "see if we can get to the bottom of this."
Christine Young covers IBM. She can be reached at 346-3140 or cyoung@th-record.com. IBM Notebook appears Mondays.
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