State invests millions in academic research and
development to sweeten business climate in the Peach State

I

n a state that has traditionally ranked among the nation's lowest in education, Georgia Gov. Roy Barnes is determined to turn the Peach State's educational system around.
     Barnes was elected in 1998 and immediately went to work reforming and advancing the state's school system with reduced class size and massive additional funding. This year Barnes has proposed a variety of extensive projects that include $468 million in new school construction, $68.5 million to fund paraprofessionals in each state kindergarten classroom and the end of social promotion within five years. Education reform has become the mantra at the state Capitol in Atlanta.
     "We see education as a key piece of infrastructure," says Robert Morris, director of communications for the Georgia Department of Industry and Trade. "It is a key part of developing a strong economy and maintaining a strong economy here in Georgia. It's just as important as roads or sewers. Education is economic development."
     In 1999, Barnes launched the Yamacraw Design Center, a cooperative effort on the part of business and state for exchange and research in telecommunications and high-tech. The endeavor has recruited more than 17 telecommunications, broadband and high tech companies offering high-tech jobs and research. This year Barnes has proposed $4.5 million in funding for the Yamacraw Design Center. The center has committed to create 2,300 high-tech jobs in Georgia within the next five to six years. The added bonus is the 40 new faculty members at seven Georgia universities with expertise in computers and electrical engineering courtesy of funding from Yamacraw. The faculty members will allow Georgia to double the number of computer and electrical engineering graduates within the next five years.
     The Yamacraw project appears to be on track. This spring, BellSouth signed a partnership agreement with the center and agreed to create 100 high-tech jobs. The company cited the benefit of shared technology associations which would help BellSouth land a state telecommunications contract to be bid in August. The contract will allow the company to install broadband access and deliver Internet access to 44 rural Georgia markets by year's end.
     Barnes has also proposed a public/private partnership known as the Georgia Cancer Coalition. Cancer is the second leading cause of death among Georgians. Barnes has dedicated up to $1 billion in funding for research scholars to study genomics and ultimately predict who will get cancer and develop earlier detection and treatment methods.
     "The Cancer Coalition will allow us to attract world-class scholars," says Morris. "It will also attract high-tech businesses in related fields such as bio-informatics." The funding for the coalition will come in part from Georgia's share of the tobacco settlement.
     Barnes has also directed resources toward the Georgia Research Alliance. The Alliance is a partnership of six research universities and facilities, business and the state to grow and leverage Georgia's research capabilities. Since 1990, the economic development initiative has raised more than $750 million in public/private funds while investing in telecommunications, biotechnology and environmental sciences. Georgia's Eminent Scholar Program, which is part of the Georgia Research Alliance, was called by the Wall Street Journal "the new definition of economic competition among states."

Georgia New Facilities in 2000
Company	New/Exp.	Location	Product	Investment
Cox Communications	E	Atlanta	Office	$1 ,000
Cherokee County Dev.	N	Canton	Industrial Park		550
E*Trade	N	Alpharetta	Operations Center		500
WorldCom	N	Alpharetta	Hdqtrs office		450
Georgia Power	N	Newnan	Power Plant		400
Ford Motor Co.	E	Hapeville	Auto Parts		500
Mitsubishi Corp.	N	Heard County	Power Plant		200
Southern Co.	N	Jackson County	Power Plant		100
Dynegy	N	Heard County	Power Plant		100
Turner Broadcasting	E	Atlanta	Hdqtrs office		90
Lucent Technologies	E	Norcross	Semiconductors		60
Georgia Ductile Iron	N	Cordele	Auto parts		45
BestBuy	N	Dublin	D/Warehouse		40
Continental Tire	N	Hall County	Tires		20
Crider Poultry	N	Emanuel County	Chicken processing		19

     A recent publication ranked the Peach State second in the region in sales from biomedical and biotechnical interests, and the state continues to push development in the research and science industries. "We're on the cutting edge of those industries," says Morris. "They are growing here rapidly in part because of the immense amount of resources Gov. Barnes has invested in our research and development opportunities through our universities."The Legislature has also aimed to put out the state welcome mat for new business. As of January 1 of this year, Georgia offers new relocating business headquarters, the Corporate Headquarters Location Relocation Tax Credit. The credit allows for a business locating or relocating its headquarters within the state a $2,500 per job tax credit for five years. The company must invest at least $1 million and create 100 new jobs.
     Other new tax credits effective as of the first of this year include the Machinery Component Sales Tax Exemption, which expands the sales tax exemption to include not only new manufacturing machinery, but also machinery components up to $150,000 in purchases for five years. State officials maintain this will aid the traditional manufacturing sector, particularly at a time when the dot-com sector may be struggling.
     The state also offers a Computer Hardware Sales Tax Exemption for companies making at least $15 million in computer hardware purchases. To aid the research sector, Georgia has enacted the Clean Room Equipment Sales Tax Exemption. This is a credit available on equipment, construction materials and machinery purchased by companies constructing a clean room of Class 100 or more.