ALBANY - For the first time, New York will move to recover state funds and tax breaks given to hundreds of companies that failed to deliver the jobs they promised under the long criticized Empire Zone program.

“We're going to be aggressively asserting our rights under the Empire Zone program and other programs that we administer,” Patrick J. Foye, co-chairman of the Empire State Development Corp., said of the Spitzer administration initiative on Tuesday. “We think it's the responsible thing to do in terms of our accountability to the governor and the Legislature and the taxpayers.”

More than 3,000 businesses failed to meet even 60 percent of their promises to create jobs, according to The Buffalo News, which cited an internal Empire Development memo.

The Republican-led Senate has also called for reform.

“The Senate supports reforming the Empire Zone program to ensure that every dollar is spent wisely, rather than gutting the program in a way that is detrimental to the very communities the state is trying to help,” said Scott Reif, spokesman for Senate Majority Leader Joseph Bruno.

The state is using an audit of 2005 annual business reports to develop a list of companies that will get letters informing them their performance is under review, Empire Development spokesman Errol Cockfield said Wednesday.

“The notification represents the first time in the program's history that Empire Zone certified companies will be officially informed of the state's expectations that they make meaningful progress toward their goals in order to continue enjoying the program's benefits,” Cockfield said. “Our goal is to foster job growth and encourage companies to locate and expand in New York state. We also remain committed to vigorously exploring all available remedies where commitments haven't been met.”

The $500 million a year Empire Zone program provides tax breaks for companies that promise to create or retain jobs. But it has been criticized for years for helping politically connected companies and businesses that simply change names and transfer their payrolls to create the illusion of new jobs.

The state also released a report that shows the state could double the rate of job growth by focusing on a priority of Gov. Eliot Spitzer's administration - high technology firms and environmentally clean fuel technologies.