Transcript A Comparative Analysis of Nebraska’s Tax and Incentive Climate

DED PRESENTATION
SPRING NEDA CONFERENCE
May 3, 2007
Kearney, Nebraska
Department of Economic Development
www.NebraskaAdvantage.biz
Personal Thank You
Nebraska Friends!
Department of Economic Development
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DEFINING ECONOMIC DEVELOPMENT
The sole reason government invests in, or assists with, private business, industrial
and entrepreneurial activities is because it expects to increase the public welfare
as a result.
Primary Project Investment: DED supports the premise that new primary jobs
generate new secondary jobs and related services. Thus, DED’s long-standing
policy is to make strategic public investments in private businesses, not-for-profit
enterprises and community development projects that create or retain primary jobs
and/or will foster new capital investment in the State.
Primary jobs: those jobs where the goods or services manufactured or processed
by Nebraska workers are generally exported and/or sold outside of the state brining
in dollars from outside of the state; jobs that create new wealth. In addition,
primary jobs include research and development jobs that are funded by nonNebraska financial resources (federal government or an international company).
Local or regional retail jobs seldom fall into this category since retail sales are
almost exclusively local or regional (in-state).
Secondary jobs: those jobs where the goods or services manufactured or
processed by Nebraska workers are generally sold locally or regionally (in-state) to
individuals and to export and non-export businesses.
Department of Economic Development
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EVALUATING DED IMPACT
Successful economic development initiatives should:
• grow stronger communities by supporting solid public infrastructure and
high quality, affordable, housing options that stimulate long-term
community sustainability and future economic growth
• stimulate the creation and retention of high quality, primary
employment opportunities that improve per capita incomes and lead to
a better quality of life for Nebraska residents
• generate additional wealth creation potential for Nebraska residents
• attract human and financial capital from outside of the State
• assure grow a readily available, top quality, skilled workforce to meet
the ever-changing needs of business and industry, thereby retaining
Nebraska’s best and brightest youth and attracting additional workforce
and population to Nebraska’s communities
Department of Economic Development
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STAFFING CHANGES
Richard Baier
Department of Economic Development
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STAFFING CHANGES
•New Housing Position
•New Administrative Functions – CDBG & Job
Training
•Bob Doty
•New Position
•Christa’s Maternity
•Tourism Marketing Position
Department of Economic Development
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LEGISLATIVE UPDATE
Department of Economic Development
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Legislative Action
1.
2.
3.
4.
5.
6.
7.
8.
9.
DED Budget
Job Training (Call to Action)
Program Reauthorization
Advantage Clean Up
Elimination of NICA
Value-Added Ag
Building Entrepreneurial Communities Act
Tax Cuts
Other
Department of Economic Development
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LEGISLATIVE PLANNING – 2008 SESSION
1.
2.
3.
4.
Focus Group Meetings
Issues Meetings
Local Trends
Candidate Recruitment
Department of Economic Development
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CDBG PROGRAM
UPDATE
Department of Economic Development
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CDBG Issues
1. Federal Funding Status
2. Need for Prioritization
1. Ethanol - $350,000 for Infrastructure
2. Business Development - $400,000 (250,000
loan/150,000 forgivable)
3. Multiple Community Projects – DED Sets the Amount
4. Reuse Fund Status – Local and State Plan Changes
5. Spec Buildings
6. Anti-Pirating
Department of Economic Development
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HOUSING
1. Part of ED Process
2. Know the Resources
3. Know Your Real Need
4. Focus on Making a Profit
5. Replicate Successes
Department of Economic Development
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NEBRASKA ADVANTAGE
Department of Economic Development
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Nebraska Advantage Act (1/1/06-4/30/07)
100 Applications
•$3.62 Billion – 9,291 Jobs
•Bio/Medical
23 Proj $2.30 Billion
1,550 Jobs
•Mfg/Processing
41 Proj $295.6 Million
1,846 Jobs
•Financial Services
12 Proj $176.1 Million
3,433 Jobs
•Telecom/Other Services
24 Proj $844.1 Million
2,462 Jobs
By Location
•Omaha MSA
50 Projects
•Lincoln MSA
15 Projects
•Balance of State
35 Projects
Department of Economic Development
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Other Nebraska Advantage Programs
(1/1/06-4/30/07)
Rural Development Advantage
•43 Projects
•$63.66 Million
•175 Jobs
Microenterprise Advantage – Over Limit
•855 Applications (399 in 2007)
Research and Development Advantage
Department of Economic Development
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Customized Training Advantage
(7/1/05-4/30/07)
Available = $15 Million/Biennium
Under Contract 2005-06
Outstanding Offers
$10.0 Million
$3.35 Million
63 Projects
21 Projects
26 Lincoln/Omaha
5 Lincoln/Omaha
37 Balance of State
16 Balance of State
6,375 Jobs
1,945 Jobs
Average Starting Wage =
$13.23
Average Starting Wage =
Unknown
Department of Economic Development
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Incentive Reminders
1. Job Training
1. Don’t Commit Amount in Advance
2. Amount Consistent Among Communities
3. New Wage Rates Forthcoming
4. Use of Community Colleges
2. Research & Development – Availability
3. Include Revenue – Timelines Vastly Improved
4. Regulatory – Include DEQ & DOR Early
5. New Wage Rates for LB 312 Programs
Annual
Hourly
Comp %
2006
Neb Ave Wage
$32,419.46
$15.59
60% NAW
$19,452
$9.35
3%
75% NAW
$24,315
$11.69
4%
100% NAW 125% NAW
$32,419
$40,524
$15.59
$19.48
5%
6%
Department of Economic Development
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ED Certified Communities
and
LB 840 Communities
Department of Economic Development
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EDCC
Certifications Awarded
•Ord
•Holdrege
•Norfolk
•Auburn
•Fremont
•South Sioux
•Grand Island
CONGRATULATIONS
Nebraska City
North Platte
Ogallala
Much Better Applications
Target Marketing Efforts
Department of Economic Development
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LB 840 COMMUNITIES
Albion
Alliance
Arapahoe
Arnold
Atkinson
Bayard
Beatrice
Beaver City
Blair
Burwell
Cambridge
Central City
Chadron
Columbus
Cozad
Curtis
Fairbury
Falls City
Fremont
Geneva
Gering
Gothenburg
Grand Island
Holdrege
Imperial
Kimball
Lexington
Louisville
Milford
Mitchell
Nebraska City
North Platte
Ord
Oshkosh
Plattsmouth
Schuyler
St. Paul
Scottsbluff
Seward
Sidney
Superior
Tecumseh
Valentine
Wakefield
1. Know Your Program
2. Invest Your Funds
Department of Economic Development
www.NebraskaAdvantage.biz
RDC ADMINISTERED
PROGRAMS
(BECA and VALUE-ADDED AG)
Department of Economic Development
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BECA and VALUE-ADDED AG
BECA
•3 Rounds
•34 Applications – 29 Grants
•$500,000 Committed
Value-Added Ag
•74 Applications – 49 Funded
•$4.0 Million Requested
•$1.7 Million Committed
Department of Economic Development
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NEBRASKA ED
MARKETING
Department of Economic Development
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DED MARKETING
Positive Press
Top 10 of “Most Livable State Award”, Morgan Quinto Press, 2006
7th of “The Best States for Business”, Forbes Magazine, 2006
Top 10 of “Pro-Business States”, The Pollina Corporate 2007 Top
10 Pro-Business States
2nd for the “State’s Healthcare Cost Quotient”, Expansion
Management Magazine, 2006
2nd in the “State Liability Systems Ranking Study”, U.S. Chamber
Institute for Legal Reform, 2006
Partnership Opportunities
Special Events
Advertising Specials – New Focus
Department of Economic Development
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WEB SITE UPDATE
Department of Economic Development
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LABOR FORCE
Department of Economic Development
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WORKFORCE STATUS
1. 16,000 New Jobs in 2006
2. Increased Awareness of Pending Shortage
3. Strong Local Efforts
4. DED Focus on Technology
5. Work with Colleges/Universities
6. Targeted Recruitment – Alums & Out-of-State
7. Leveraging Underemployed
8. Need to Know Workforce – Impacts on Recruitment
Department of Economic Development
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GENERAL ISSUES
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GENERAL ED ISSUES
1. Confidentiality and Ethics
2. Diplomats Events
1. B&I Day
2. Passport – 9/29
1. Consultants & Prospects
2. Existing Company Corp HQ
3. Successful Alums and Former Residents
3. NCIP Focus – Strategic Planning
4. I-80 Planning Effort - NIZC
Department of Economic Development
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GENERAL ED ISSUES
1.
2.
3.
4.
5.
6.
Coordinate with Cheryl on Projects
Research on Mega Sites
Research on Telework Opportunities
Know Your Telecomm
Do Your Corp HQ Calls
Training Opportunities
Department of Economic Development
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QUESTIONS
&
ANSWERS
Department of Economic Development
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