'09
By Dees Stribling
For a few weeks in early 2009, all eyes were on the massive federal stimulus package as it wound its contentious way through Congress and to President Obama’s desk. But considerably less attention has been paid to state efforts to stimulate their own economies.
In Oregon early this year, for example, the state legislature passed a $175 million stimulus bill to fund various shovel-ready projects around that state, while in Wisconsin the state legislature moved to push through a bill to expand tax credits for start-up companies within the state, among other stimulus provisions. In a number of other states, officials have called for stimulus bills of various sorts, despite the problematic and sometimes perilous condition of state finances.
“We’re seeing a fair amount of activity by governors and legislatures to put state stimulus plans in place,” confirms Robert N. Campbell III, vice chairman and U.S. state government leader of Deloitte LLP, an audit, consulting, financial advisory service. “The goal, broadly speaking, is to attract businesses, or create a climate in which jobs are created or protected.”
Late last year, New Jersey Gov. Jon Corzine inked a bill that was part of his proposed Economic Assistance and Recovery Plan, thereby setting up two distinct New Jersey stimulus programs totaling $170 million. Compared to the federal outlay, that might seem modest, but such programs operate on the theory that jobs created or retained have a multiplier effect on local economies, as well as help maintain a state’s tax base.
InvestNJ, one of the programs, offers a $3,000 grant to businesses in the state for each job they create and retain for a year, up to a total of a half million dollars for each recipient. The program also provides grants of 7 percent of qualifying capital investments, up to a total grant of $1 million per business.
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