JACKSON - Economic development remains a priority of the 2005 Legislature, despite the apparent demise of an incentive package designed to draw lucrative business deals to Mississippi, legislators say.
Legislation dubbed "Momentum Mississippi" died last week under a deadline when House Ways and Means Committee Chairman Percy Watson, D-Hattiesburg, chose not to bring it up for a vote of the full House.
The plan would have given tax breaks to existing companies for expansions and extended to high-tech companies many of the incentives and breaks that manufacturers already receive.
"When the House leadership kills the economic incentives bill without allowing a vote, it sends a terrible message about Mississippi's commitment to economic development," Gov. Haley Barbour said.
The bill was amended in Watson's committee from $50 million to $24 million. House Speaker Billy McCoy said soon after the vote, there were attempts made to get lawmakers to restore the full amount during floor debate.
McCoy, D-Rienzi, said the bill would have given the governor a significant amount of discretionary authority in offering incentives to new or existing businesses without asking legislative permission. He said the bill's death doesn't mean industry incentives are dead at the Capitol.
"With the bond bill that's on the way from the House, if the Senate chooses to use that, we'll go to conference. There are many ways in it to give him the discretion he seeks," McCoy said.
There are still several surviving bills aimed at boosting Mississippi's sagging economy through job creation.
Among the largest is legislation passed by the House that would offer incentives for a steel mill to locate in north Mississippi. The bill provides a $25 million grant and up to $85 million in loans for the SteelCorr Inc. development near Columbus.
Another House bill would expand the definition of economically distressed areas so more municipalities could offer tax breaks to companies. Currently, areas like the Mississippi Delta - one of the poorest regions in the nation - are defined as economically distressed.
Under the bill, a community with at least 30 percent of its residents living under the national poverty level would qualify for the tax breaks.
Watson said this past week that the bill is meant to help areas like Jackson.
The bill has hit a roadblock in the Senate, where Finance Committee Chairman Tommy Robertson, R-Moss Point, has delayed a vote.
Robertson said the legislation could apply to places such as Tupelo and Moss Point, and believes that would put the Delta at a disadvantage.
The Delta is an agrarian region with little in the way of restaurants, lodging and shopping. Robertson said it would be unlikely that a company would choose to locate in the Delta rather than an urban area when both offer the same tax incentives.
Sen. Willie Simmons, D-Cleveland, who represents portions of the Delta, agreed. He said most municipalities in the Delta lack a strong infrastructure and tax base.
"If everybody is put in the pool, we're going to continue to have those areas that are thriving to thrive more and those who are depressed to continue to be depressed," Simmons said.
Rep. Billy Broomfield, D-Moss Point, said even though his district is in a metropolitan area, it has suffered since International Paper Co. and Rohm and Haas shut down in 2001.
"I would support that bill 100 percent. I would hope my municipality would qualify," Broomfield said.
Robertson didn't say whether his committee would vote on the bill next week, but he did say senators would vote on the SteelCorr legislation.
"I don't see a lot of problems with that," Robertson said of the SteelCorr bill.
Both chambers have also passed hefty bond proposals.
The House has passed an $83.2 million bond bill that would provide $10 million for a development project in downtown Natchez; $10 million for an expansion of Baxter Healthcare in Cleveland and $1.5 million for a National Guard Readiness Center in Clarksdale.
The Senate approved a $56 million package for Northrop Grumman's expansion.
Another bill in the Senate would provide $16 million for the Infinity Space, Science and Education Center at Stennis Space Center in Hancock County, which would serve as a tourist attraction off Interstate 10.
The legislation would provide $2 million for a B.B. King Museum in Indianola and $2 million for a Mississippi Arts and Entertainment Center under development in Meridian.
Sen. Walter Michel, R-Jackson, spoke against approving more bond projects.
"With the financial condition of the state of Mississippi, I can't support taking out the state's credit card for bonding two museums and a welcome center," Michel said.
"There's no end to the golf courses, museums and welcome centers we can build. I don't think now is the proper time we can do it."
Robertson said the projects will pay for themselves in the long term.
"Is there any doubt in your mind that the Infinity project will not be the shining jewel for this state once it is built?" Robertson said. "The B.B. King Museum - is there any doubt in your mind that people will go there and visit?"
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