Tuesday, January 22, 2013

Super projects: When economic development is poaching

Posted By on Tue, Jan 22, 2013 at 10:15 AM

Arkansas still waits for how much money Gov. Mike Beebe wants from taxpayers to land a super project with many new jobs, said to be almost a certainty.

At a minimum, super projects always raise questions about cost and benefit; about whether the state payouts were critical to the corporation or merely lagniappe the companies were happy to slurp. But there's another issue bubbling that will be the subject of discussion this week, which may or may not be relevant to Arkansas's coming news:

Good Jobs First will hold a tele-press conference on January 24 to issue a major study exploring the states' use of eight- and nine-figure economic development subsidy packages to poach jobs from each other, or pay "job blackmail" to prevent jobs from being pirated.

The study will include an especially outrageous aspect of the problem, dubbed "interstate job fraud."

In addition to the primary author of the report, the press conference will feature Bill Hall, Assistant to the Chairman, Hallmark Cards. He and other Kansas City-area business leaders have been outspoken on the issue.

The study will include case studies featuring metro areas Kansas City, Charlotte and Memphis and the states of Georgia, New Jersey, Rhode Island, Tennessee, and Texas. It has additional content regarding California, Connecticut, Illinois, Massachusetts, New Hampshire, New York, Ohio and Pennsylvania. It includes a historical chapter on interstate competition for jobs, data on interstate job relocations, and policy recommendations
.

I'm particularly interested if the coming Arkansas project might be one of those "job blackmail" deals — where a company already in Arkansas holds the state up for money to prevent it from moving jobs elsewhere. Seems like we went down this road once years ago on a forest products company's threat to locate a big mill elsewhere — many miles from the trees it was cutting in Arkansas to feed existing operations.

Tags: ,

Favorite

Speaking of Corporate Welfare, super Project

Comments (9)

Showing 1-9 of 9

Add a comment

 
Subscribe to this thread:
Showing 1-9 of 9

Add a comment

More by Max Brantley

  • Johnny Key refuses to meet with citizen group on LR schools

    State Education Commissioner Johnny Key has refused to meet as the Little Rock School Board with a citizen's group that petitioned for a meeting as the law prescribes.
    • Jan 18, 2017
  • Bill takes aim at Internet sales — the long way around

    Sen. Jake Files, with other co-sponsors, filed his legislation today that is aimed at collecting sales taxes from "remote" sellers — in other words sales by Internet from companies with no physical presence in Arkansas.
    • Jan 18, 2017
  • Hope and change: Obama signs off

    President Barack Obama held his final news conference today closing off with hopeful words: "At my core, I think we’re going to be OK."
    • Jan 18, 2017
  • More »

Readers also liked…

Most Shared

Visit Arkansas

Indian Rock House at Fairfield Bay

Indian Rock House at Fairfield Bay

Winter is the perfect time to explore the natural stone shelters where native Arkansans once lived

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation