 From Site Selection magazine, November 2003 
U.S. LEGISLATIVE UPDATE
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Alabama
Even after a large helping of federal funds, Alabama still faces a 2004 deficit of more than $400 million. So Gov. Bob Riley took to the voters a sweeping $1.2-billion reform package that included a tax increase, and was soundly defeated by a two-to-one margin in September. At press time, the state legislature was in special session to address the inevitable cuts that now must follow. Over the summer, Gov. Riley and Mississippi Gov. Ronnie Musgrove signed a letter of intent to develop an industrial park in the perennially poor region known as the "Black Belt," along the states' border. In the south, the Mobile Technical Institute opened a new 8,344-sq.-ft. (775-sq.-m.) facility that will focus on short-term, skill-oriented training specifically targeted to regional employers. The institution offers Administrative Support Specialist and Computer Technical Support diploma programs. In the northern Alabama city of Decatur, plans and fundraising are under way for a $10-million technical high school.
Alaska
The Alaska Railroad Corp. was authorized to provide financing for a natural gas pipeline for the transportation of natural gas recovered from the North Slope. Tax-exempt bonds worth up to $17 billion may be issued for the project. In August, Gov. Frank Murkowski denied for the second time a permit for a foreign-based salmon processing ship to operate in state waters, citing its potential economic impact on the shoreside processing industry. The action follows on a $50-million salmon industry revitalization plan the governor announced in April, which includes funds for chilling and freezing infrastructure, harbor and transportation infrastructure projects, and small business assistance. In July, a new law repealed part of the state's new minimum wage law, which set the wage at $7.15 per hour in 2002. The amended law no longer includes an automatic increase formula based on rises in the consumer price index. In July 1, a new law imposed a fee of $2.50 per tire on the retail sale of new tires for motor vehicles designed for use on a highway (taking effect in 90 days), and a fee of $5 per studded tire sold on or after July 1, 2004. Even with a budget $198 million lower than the year before, Gov. Murkowski and the legislature fully funded education at $701.3 million for 2004, a level $32 million higher than 2003.
Arizona
Along with the hastily formed Coalition for Economic Prosperity, Gov. Janet Napolitano successfully fought off a legislative proposal to eliminate the state Dept. of Commerce. In January, Napolitano created the Governor's Council on Innovation and Technology. Headed by industry leaders from such companies as Raytheon, Boeing and Microchip, the council includes committees on capital formation, technology transfer and infrastructure and supply chain development. A 440-square-mile enterprise zone has been designated in Prescott Valley and unincorporated parts of Yavapai County. The state currently offers up to a $3,000 tax credit per employee (for up to 200 employees) over a three-year period to companies that meet certain employee pay and health insurance criteria. In addition to benefiting from the newly passed Military Reuse Zone benefits at Mesa's Williams Gateway Airport, new corporate arrival Advanced Training Systems International is conducting jet aircraft maintenance training at nearby Chandler-Gilbert Community College located on the Williams Educational Campus. The airport offers three 10,000-ft. (3,000-m.) runways, a foreign trade zone, and is offering itself for general aviation, air cargo, commercial passenger service, aerospace manufacturing, maintenance and modification.
Arkansas
Gov. Mike Huckabee has been authorized to call a special election to approve issuance of bonds to pay for improvements for any project investing at least $400 million and employing at least 400. Six incentive programs were combined into one, creating a tiered county system and tying eligibility to payroll instead of number of jobs. The successful city and county PILOT (payment in lieu of taxes) program now requires payment of at least 35 percent of property taxes, with most of that amount going toward education. The state's student loan forgiveness program now extends to out-of-state students attending an Arkansas college or university. The program forgives 25 percent of a student's loan for each year the student works in Arkansas in certain careers. After four years, the loan is completely forgiven. A new educational grant program has been created, targeting adults looking to improve their work force skills. Meanwhile, a network of 10 existing work force training consortia and five more in formation serves the entire state. Leading the charge is Mid-South Community College, in West Memphis, where award-winning training and campus facilities are keeping pace with community and corporate demand.
California
In September, legislators passed a bill requiring employers of 50 or more people to either provide employees with insurance or pay into a state pool to purchase coverage, beginning in 2007. If a company has 200 or more employees, an option for family coverage would be required, beginning in 2006. The bill also included some provisions for decreasing worker's compensation costs. In the wake of dramatic downsizing at the state's Dept. of Commerce, Gov. Gray Davis formed the State Commission for Economic Development. Among the many projects financed this year by bonds from the California Infrastructure and Economic Development Bank are $65 million in bonds issued for the renovation of the California Academy of Sciences in San Francisco and $10.2 million in bonds issued for the expansion of the Claremont University Colleges near Los Angeles.
Continue to: Colorado . . .
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