From Site Selection magazine, November 2003
U.S. LEGISLATIVE UPDATE
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Hawaii
Hawaii has added incentives to fund more cancer research (Act 174), expand renewable energy tax credits (Act 207), liberalize allowable investments by captive insurance companies (Act 208) and make available tax credits for selected tourism attractions (Act 100). Hawaii maintains a network of "one-stop" centers around the state to assist employers and job seekers. The increase in demand for call center staff has resulted in the development of a public/private call center training facility located at the Honolulu Community College on Oahu. Under Act 148 of the 2003 Legislature, the State's Workforce Development Council will further strengthen workforce development by pulling together the entire system, including education, federal workforce programs and economic development programs.
Idaho
A one-cent sales tax increase, due to sunset in 2005, was enacted in May 2003. A two-year freeze was implemented on unemployment insurance tax increases. A cigarette tax of 29 cents a pack was enacted. A measure allowing bonding for facility projects on college campuses across the state was approved, clearing the way for projects estimated to have an economic impact of some $188 million. Backing that measure, even in a year of cutbacks, public K-12 education was funded for $16 million more than in the previous budget year.
Illinois
The Corporate Accountability for Tax Expenditures Act went into effect in August 2003, and authorizes the recapture of development assistance if the assisted party does not meet agreement requirements. As part of this law, new reporting requirements were put in place concerning projects approved for development assistance, including the requirement that the Dept. of Revenue publish the data received. Effective January 2004, the Illinois minimum wage will rise to $5.50 per hour. In January 2005, the minimum wage will rise to $6.50 per hour. From 2004 through 2008, one additional enterprise zone per year may be certified by the state Dept. of Commerce and Economic Opportunity. The new Brownfield Site Restoration Program reimburses businesses for certain costs related to site redevelopment. All federal and state job training resources and programs have now been aligned under the state's Dept. of Commerce and Economic Opportunity, in conjunction with the Blagojevich administration's "21st Century Jobs" training initiative. Economic development and infrastructure projects are eligible for $100 million in new funds. In addition, $15 million has been devoted to the state's Prime Sites program. The Coal Bill provides for $300 million in clean coal and energy bond funds for the building of new electric generating facilities. Ethanol and biodiesel fuel plants are now eligible to draw from a newly created $15-million grant pool. In addition, a new law extends the sales tax exemption for such fuels through the year 2013. In August, the City of Chicago, under the aegis of Mayor Richard Daley's Office of Workforce Development, opened a new $650,000 training center at Ford Motor Co.'s Chicago Manufacturing Campus (CMC), the nation's first parts supplier park, on the city's south side. Comau-Pico, specializing in automated assembly instruction, has invested $500,000 in equipment and curriculum development. Upon completion of the two-week, 40-hour curriculum, CMC trainees will receive certification from Comau-Pico in areas such as electrical machine systems, hydraulics, and pneumatics, among others.
Indiana
After the sudden death of Gov. Frank O'Bannon in September, Lt. Gov. Joe Kernan, the official head of state economic development efforts, was sworn in as governor. Two major ED bills enable the three-port Ports of Indiana to offer lease financing anywhere in the state, and to develop intermodal rail ports. Energize Indiana is a five-year plan that includes skill assessment of Indiana workers and skills requirement identification for 1,800 different job categories. In addition, the state is tripling the number of job fair events, and introducing company-specific employment fairs for companies in the advanced manufacturing, life sciences, IT and high-tech distribution sectors.
Iowa
In June, the $653-million Iowa Values Fund was authorized, devoting some $503 million ($278 million budgeted, $225 million pending a four-year review) to economic development projects over the next seven years and $150 million to school infrastructure over the next 10 years. A total of $500,000 in funding was approved for 2004 to provide brownfield redevelopment assistance. Thirty enterprise zones were approved in six communities: Cass, Crawford, Floyd, Mitchell and Winnebago counties, and the cities of New Hampton and Tama. That brings the state's total enterprise zones to 450. The Iowa Values Fund includes $25 million for work force training. Meanwhile, Iowa Western Community College in Council Bluffs is beefing up its offerings with a new $3.9-million, 34,000-sq.-ft. (3,159-sq.-m.) avionics facility at the city airport. The college is out to make its aviation maintenance research and education facilities among the best in the nation. And in north central Iowa, North Iowa Area Community College was pivotal in the formation in fall 2003 of the North Central Iowa Growth Partnership, bringing together the communities of Clear Lake and Mason City.
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