As we roll into another election season it’s time to start thinking past November. The Governor of Georgia will have to hit the ground running and be prepared to deal with a legislature that will be in session and a budget that will need to be appropriated. Those will be the immediate needs of the job but the long-term look ahead has to include continued economic development. Governor Nathan Deal has made this a centerpiece of his re-election campaign. Georgia has been ranked the number one state in which to do business and this says a lot about our willingness to do what it takes to ensure economic growth. The question is do we want to give him another “bullet” for his gun?
In the latest issue of Forbes Magazine the spotlight is on Mexico and predicts that Detroit will never again regain its number one ranking in automotive production. When you read the article it’s clear that America is going to have to fight to keep what we have, much less hope for new manufacturing investment. Mexico is building manufacturing facilities that measure in the millions of square feet and attract names like Nissan, Mercedes and Toyota. Georgia is competing with countries not just other states.
Perhaps Georgia should look into the Texas model for attracting new business to the state. The Texas Enterprise Fund is the state’s way of closing deals that need that little extra “push” at the end. In 2003 the Texas legislature established the fund to help attract new jobs and investment to the state. It’s considered a “deal closing” fund and is the largest in the nation. Texas Governor Rick Perry used the fund to lure Toyota’s corporate headquarters from California. The deal has brought over 4000 “white collar” jobs to the Dallas area. Those aren’t manufacturing jobs, those are high paying white collar jobs that will fatten the sales tax driven coffers of the state. Texas has no income tax so a sales tax is the only revenue provider for the state’s needs.
In order for Georgia to compete on an international stage it may be necessary to give the governor something else to work with. We have Hartsfield-Jackson, a plumb that other states would kill for. We have low taxes and a strong stable workforce. If the legislature wants to appropriate a few million annually for the governor to use I think it might be a good idea. Like any government money it should be parceled out under tight scrutiny with very strict guidelines and at least two other ranking officials agreeing to sign off on it. The potential corporate recipients should have to pass a rigorous financial due-diligence process to insure that they will be around to have the promised economic impact. Each applicant would need to provide clear evidence of the jobs to be created and the amount of payroll attached to those jobs. The credit ratings should be impeccable and their financial standing, tax status and legal issues should be above reproach.
Jobs mean growth and Texas has used their Enterprise Fund to add thousands of jobs. Georgia and Governor Deal are doing a very good job with what we have but it may be time to up the ante! Jobs will follow the path of greatest return on investment. Prosperity will follow the jobs. Job stability and regular paychecks mean families get to spend more time together. Crime goes down as education improves. The investment in jobs now means savings later. The dependent class shrinks and the exponential positive impact of success is like an insurance policy for those of us in the workforce today and the many hoping that a job will be here for them as they grow and graduate either from high school or college. Maybe the “Georgia Enterprise Fund” makes sense…it’s definitely worth a look. The world is calling!
