Steel mill update | Arkansas Blog

Tuesday, December 12, 2006

Steel mill update

Posted By on Tue, Dec 12, 2006 at 12:29 PM

Earlier in the day we commented on a story about efforts by Louisiana and Arkansas to lure a German steelmaker in return for $1 billion in corporate welfare and givebacks in easing of pollution control regulations.

The update is that the Louisiana legislature has turned down Gov. Kathleen Blanco's entreaty to set $300 million aside for ThyssenKrupp as part of broader legislation to lift a cap on state spending. She thinks she may still have time to get the additional money before the legislature adjourns Sunday, but she fell 11 votes short Monday and Republican and New Orleans-area opposition is strong.

If our earlier correspondent is correct -- that the subsidies demanded were too high for Alabama's taste -- failure of Blanco to get the money in Louisiana could leave Arkansas in the "lead" for the steel mill. Electric rates likely will be an issue here, however.

Understand. The state must play the incentives game because all of them do. But there's a point at which the cost might be too high. Is $333,000 per job a good deal for a plant with unknown environmental costs? It's a lot, that's for sure. If each job pays $60,000 per year and you figure that the average taxpayer pays about 10 percent of his gross income in state and local taxes, it would take better than 15 years before tax revenue, including local taxes, recouped the base outlay by the state. Sure there are multipliers as the money moves through the economy, but there are also new infrastructure costs required by such a facility and the people who work there -- streets, police, fire, sewer, water, schools, etc.  I'm not making the case either way, merely saying that every business must weigh costs of a project against potential return. The state should be no different.

From the ArkTimes store

Favorite

Comments

Subscribe to this thread:

Add a comment

More by Max Brantley

Readers also liked…

  • Al Gore remembers Dale Bumpers

    Former Vice President Al Gore, a former U.S. Senate colleague of Dale Bumpers, sent a statement on Bumpers' death Friday:
    • Jan 3, 2016
  • 'Million-Dollar Thursday': A visit to Sherwood's hot check court

    We take a visit to the weekly hot check court in Sherwood District Court, the subject of a recent civil rights lawsuit filed by ACLU Arkansas and others, who say the system there results in a modern-day debtor's prison
    • Aug 25, 2016
  • Jason Rapert vs. Wikipedia

    Sen. Jason Rapert against the world: Wikipedia edition.
    • Jan 23, 2016

Most Shared

  • Take yourself there: Mavis Staples coming to LR for Central High performance

    Gospel and R&B singer and civil rights activist Mavis Staples, who has been inspiring fans with gospel-inflected freedom songs like "I'll Take You There" and "March Up Freedom's Highway" and the poignant "Oh What a Feeling" will come to Little Rock for the commemoration of the 60th anniversary of the desegregation of Central High.
  • Klan's president

    Everything that Donald Trump does — make that everything that he says — is calculated to thrill his lustiest disciples. But he is discovering that what was brilliant for a politician is a miscalculation for a president, because it deepens the chasm between him and most Americans.
  • On Charlottesville

    Watching the Charlottesville spectacle from halfway across the country, I confess that my first instinct was to raillery. Vanilla ISIS, somebody called this mob of would-be Nazis. A parade of love-deprived nerds marching bravely out of their parents' basements carrying tiki torches from Home Depot.

Most Viewed

Most Recent Comments

Blogroll

 

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