Economic Development Accountability?
The Augusta Free Press (motto: "Our only agenda is the truth") has a Chris Graham story on a Del. Chap Peterson, D-Fairfax, bill that would require payback by companies lured to Virginia by incentives if they do not stay for five years. The text of HB2898 is here.
Peterson, of course, is a candidate for the Lt. Governor nomination. Graham's article has the interesting hook of quoting one of Peterson's rivals, former Congresswoman and State Sen. Leslie Byrne, as approving of the measure because it's "something that I've been talking about for some time now."
The Virginia Economic Developers Association has not taken a stance on the bill, but the organization's leadership is expected to meet tomorrow to discuss it. Demanding accountability from economic development is a rare phenomenon. I would expect them to oppose it.
If anybody would like to debate the merits of this proposal or discuss economic development in general, the comment section is open.
PS One of our Bacons Rebellion contributors, Steven Sisson, offers this testimonial: "Without a doubt, The Augusta Free Press is the best thing since sliced bread!" Hey, what's this blog, chopped liver?
posted by Will Vehrs @ 10:17 AM
4 comments
links to this post
4 Comments:
If I recall correctly, the last time that Virginia seriously addressed the "incentives" issue was during the Allen administration. The idea then was to peg incentives to performance: If the touted jobs and investment don't materialize, you lose the tax breaks and incentives. By demanding accountability, Peterson's bill is in the spirit of Virginia's existing policy, thought perhaps somewhat tougher.
Will Verhrs wrote: "Hey, what's this blog, chopped liver?"
I'm not a certifiable Blogophile yet.
In my estimation, the Bacon's Rebellion blog is nothing more than "Bacon Bits" but don't blog me wrong, because I love bacon bits on salads.
The same might be said of Chap's condiment-packaged business bill.
Delegate Chap Petersen bill is nothing more than salt and pepper electioneering in the 2005 statewide campaign -- and is probably tied into the Democratic outsourcing clamor and growing threat of more manufacturing plants closing, which John Kerry politically contrived and sensationalized for the 04 presidential run.
Residents throughout the commonwealth of Virginia and the rest of the nation are economically vulnerable due to free trade agreements and the global economy. But both parties are responsible and have voted in favor of those agreements.
Lt. Governor candidate's Chap Peterson and Leslie Byrne are both good politicians, but need to start thinking outside the box with legislation that will attract and benefit economic growth for the business world and create sustainable workplaces for Virginians.
Will, I agree with your analysis, the VA business community along with a majority of GA members will probably deep-six this 5-year mandatory requirement for compensation due to relocation.
If not bordering on the political ridorkulous (ridiculously dorky), it's just plain ludicrous to believe business owners would agree to a capital investment with strings attached to the businesses health and longevity.
Reward-to-punishment-to-reward maybe good dog training techniques, but it's not very business friendly.
The Commonwealth needs legislation that requires a mandatory Employee Stock Ownership Plan (ESOP) within the contractual economic development agreements. The ESOP is itself a corporate finance vehicle that provides monetary incentives with lending institutes, state and federal tax benefits, new capital investment, and most of all, the stock ownership plan increases VA employee capital wealth.
More capital wealth will drive our consumer-base economy through the flipping roof.
But most importantly, how many Virginia businesses will choose to relocate -- or outsource when employee are the corporate stockowners? And lets say the business has no other choice but to remove to the third world ...
When Virginia's employees are fully vested in company stock, they will also reap from the profits of lower wages in the global marketplace just like the corporate big boys.
It's Win-Win -- sort of.
Steve Sisson said: "Lt. Governor candidate's Chap Peterson and Leslie Byrne are both good politicians..."
Define what makes a "good politician!" If one defines being on the extreme liberal fringe of the Democart party as good, than Byrne surely qualifies under that label. Peterson is slightly to the right of Byrne, but not by much...
Frankly, I don't consider tax and spend liberals as good politicians. Unfortunately, the Republican Party is also loaded with its share of irresponsible big spenders, but hopefully some of them will be held accountable during the 2005 primary elections. On the other hand, I have yet to see any Democrats challenge incumbents for being fiscally irresponsible.
Accountbility is important. I hope Wilder will return it to Richmond. For years we have seen abuse by 'public-private' partnerships like Richmond Renaissance and now VPAF. I would like to see the bill applied to the shady Broad Street CDA.
Post a Comment
Links to this post:
Create a Link
<< Home