Top 10 Economic Development Initiatives

By Jennifer LeClaire

There was no lack of economic development initiatives in 2004. From major legislation to tax reform to workforce initiatives, southern states are turning up the heat in the competition for new, higher-paying jobs. Southern & Business Development magazine editors selected 10 economic development initiatives, which hold big promise for the states that have launched them.

Arkansas' "Super Projects Funding Amendment" passed with overwhelming support across the state and ranks tops on our list of economic development initiatives. Amendment 2 allows the governor and state legislature to approve the issuance of general obligation bonds to finance the infrastructure, site preparation work, and workforce training for a company planning to invest at least $500 million and create at least 500 jobs. Up to 5 percent of the state's general revenue can be committed annually which would currently allow for a bonding capacity of approximately $200 million.

Mississippi has always been known for low taxes, strategic location and a skilled workforce. Now you can add something else to the list of reasons to do business in Mississippi: a fair legal climate. The Tort Reform Act of 2004 ensures fairness in the courtroom for everyone. Not only does that mean better business conditions, it also translates into better jobs and healthcare for Mississippians. Among the chief items included in the law are strong venue reform; reasonable limits on non-economic damage awards; strong joint and several liability reforms; strong innocent retailer provisions; and sensible protections against punitive damages for medium and small businesses.

3. Rural South Broadband Initiatives

We've been pushing for this ever since officials in Virginia came up with the idea several years ago. One of the most effective ways to develop the rural South is to bring high-speed Internet service to all of it. We're not talking about some of it. We mean every rural town and county in the South. Currently only about two in 10 rural South-based businesses can hook up to high-speed Internet service. Fortunately, most Southern states are finding ways to make the connection. The telecommunications companies who provide the service aren't going to do it on their own. They can't make wiring the rural South a profitable venture. That's where Southern states come in and it looks like every state is at least looking at ways to make it happen.

Oklahoma's Governor Brad Henry launched this important initiative in April 2004 to create a better environment for the state's employers. The Governor's Council members represent business, education, labor and all state agencies that deal with workforce issues. Gov. Henry understood that growing firms are sometimes frustrated by having to deal with so many different agencies and educational institutions. He recognized that if expansion calls for workers with higher education skills, the employer is often forced to shuttle between governmental agencies, local career techs, and community colleges and universities to coordinate plans, secure permits, and arrange for employee training. The Governor's Council unites all educational bodies, along with state agencies and economic development professionals, to cut through this red tape and create a one-stop, single gateway for Oklahoma employers.

Texas Governor Rick Perry renewed the Texas Enterprise Fund, an initiative designed to help bring jobs and paychecks to the state, late last year. The Texas Enterprise Fund provides state leaders with a "deal-closing fund" that has the flexibility and financial resources to strengthen the state's economy. The fund can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives. Texas reauthorized the fund for $300 million. The program has been wildly successful, creating more than 15,000 new jobs and pumping nearly $6 billion into the state's economy.

Workforce development entered a new era in Kansas last year with the Kansas Economic Growth Act, some of the most far-reaching economic development legislation in years. The Act will provide economic development incentives to grow emerging industries, serve existing employers, attract new businesses, and support small business in urban and rural communities. The program includes workforce development through the Kansas First Initiative, which restructures the state's training programs to create a seamless, market-driven system to meet the changing needs of Kansas businesses. The legislation also creates a Bioscience Authority and Emerging Industry Fund to create bioscience jobs, entrepreneurship and rural development initiatives.

In a major step in the state's drive to become a national best practice model, the Tennessee Department of Economic and Community Development launched a major organizational restructuring initiative in which the department will take a more proactive regional and research-based approach to job growth and retention. It's called Project New Day and the result is a more customer service-driven organization. Some of the changes include combining recruitment, retention and expansion activities in the regional offices, creating regional business development director positions, and focusing more on presentations, project development and coordination.

The Georgia Centers of Innovation program is designed to enhance long-term economic opportunities for Georgians, nourish the state's homegrown industries, and encourage new companies to invest and build in the state. The Centers focus on specific industries that include aerospace, agricultural technologies, life sciences, marine logistics, and information technology. This initiative utilizes Georgia's unique private and public assets including Georgia's research universities to promote innovation, entrepreneurship, and technology job creation throughout the state.

In efforts to boost Florida's vital manufacturing sector, Governor Bush launched plans in late 2004 to help Florida's manufacturers by eliminating the state's sales tax on research and development equipment, as well as ending the $50,000 tax revenue threshold on manufacturing equipment for manufacturers that expand production output by 10 percent. The abatement puts an end to conflicting tax and regulatory codes that penalized manufacturers for innovating, expanding, and modernizing. This initiative is expected to help grow manufacturing in Florida and create high-paying jobs.

10. Motor Sports/FIRE Initiative Virginia

Governor Mark Warner announced the first major result of the Virginia Motorsports Initiative last year when HT Motorsports relocated its race team from Harrisburg, NC to Henry County, creating 75 new jobs through a $400,000 investment. Governor Warner launched the Virginia Motorsports Initiative in August 2003. The statewide initiative, comprised of public and private sector partners, promotes and supports motorsports activities in Virginia as a means for economic development. The state has also attracted heavy hitters with its Finance, Insurance, Real Estate (FIRE) focus in a double-whammy for economic development in the state.