Snacking on taxes

Manufacturer asks for tax incentives; no health insurance worries lawmakers

By FRITZ MAYER

MONTICELLO, NY — On its website, Ideal Snacks bills the goodies it sells as “organic certified, salty or sweet, with high protein, high fiber, low fat and no trans fat.” However, it was not the company’s products, rather its employee benefits, that came under discussion at the government center last Thursday.

Ideal Snacks, located on Mill St. in Liberty, changed ownership in June 2005. The new owners are in the process of applying for status as an Empire Zone (EZ) project. At a meeting of the Sullivan County Community and Economic Development Committee on May 1, commissioner Susan Jaffe told lawmakers that the company planned to hire 50 new employees from now through 2013, and that EZ benefits to the company would include $3,500 in tax breaks for each employee. She also said 40 of the 50 jobs would pay in the range of $8 to $10 per hour.

Lawmaker Kathy LaBuda asked if the jobs would come with benefits. Jaffe responded that the 40 “line work” jobs did not come with benefits, though the five maintenance jobs and the five “salaried” positions might include them.

This prompted a discussion among lawmakers whether the line work salary level was beneath the threshold necessary to obtain health benefits through Medicaid. If so, that could mean a significant impact to the county budget. No one at the meeting had the information readily available, although county manager David Fanslau said the information would be collected.

According to information on the New York State Department of Health website, a single person working a full time job at $8 per hour would not be eligible for health coverage under Medicaid, but a family of four with one wage earner working the same job may be eligible, depending on other variables.

Regarding the other health insurance program available to low-wage residents of New York State, Family Health Plus, a single person working a full-time job earning $8 per hour would earn too much to qualify for this program, but a single person supporting a child would be eligible.

In a phone interview, a representative from Ideal Snacks said, “Benefits are provided to eligible employees.” He declined to discuss the matter further.

When the former owners of Ideal Snacks sold the company, the “zone” that allowed them to become part of the EZ program was decertified as required by statute. The new owners applied to have the company certified as a regionally significant project, which would allow for the creation of a new zone.

Jaffe told lawmakers that New York State had approved the first step in that process. Further action will depend on the local zoning board of approval.

More information about eligibility for the various available health plans can be found at www.health.state.ny.us. Residents can also contact the Sullivan County Department of Social Services at PO Box 231, 16 Community Lane, Liberty, New York 12754, or call 845/292-0100.