Press Release
It is easy to be proud of the accomplishments made in economic development in the last few years.
With the passage of Legislative Bill 312, more commonly known as the Nebraska Advantage Act, Nebraska legislators planted a seed that will yield a large crop of new jobs and investment to advance our economy for years to come. At last report, there have been 75 applications for Nebraska Advantage incentives and $3.34 billion in potential investment. This activity is expected to produce 7,384 jobs for families within this state, and attract workers from other states as well.
These numbers are well past where we though we would be after only 11 months of the act’s implementation, and they will only grow from here. We will continue to work hard to ensure all interested parties get the help they need to bring jobs to our citizens.
The ethanol industry has been the biggest contributor to Nebraska’s economy since the inception of LB312, representing about $2.21 billion on investment this past year. Soon, Nebraska will be the largest producer of ethanol in the country. As the need for biofuels increases due to our desire to be less dependent on foreign oil, we will be the leading force in state-of-the-art ethanol production, something every Nebraskan should be proud of.
Entrepreneurship is the backbone of any healthy economy, and must be supported throughout Nebraska. Our staff contributes significant amounts of time to programs that are designed to help potential entrepreneurs get off the ground. In the 2006 fiscal year, we fielded more than 2,700 calls through our one-stop business assistance center, one of the many services our department provides our citizens.
Another key service in our department is the Nebraska Microenterprise Program.
Through this program, the state Department of Economic Development (DED) and the Nebraska Microenterprise Partnership Fund have given financial assistance to individuals in all 93 Nebraska counties. In 2005, the Legislature doubled funding for this program to $500,000 and passed the Nebraska Microenterprise Tax Credit Advantage, which provides a 20 percent refundable investment tax credit to micro-businesses for new investment or employment in targeted communities. This credit is geared toward companies with five or fewer employees, including start-ups in distressed counties.
Nebraska has also made great strides in the life sciences and defense industries. DED assisted in the creation of Bio Nebraska, a life sciences association that promotes biotechnology and advocates for its members to foster the growth of life sciences in Nebraska.
With companies such as Novartis, Teledyne Isco, Pfizer, MDS Pharma Services, Schering-Plough Animal Health, 3M Corporation and Becton-Dickinson, our state is a leader in the industry and Bio Nebraska will continue to help make it so.
In the coming years, Gov. Dave Heineman will embark on a number of priorities that will advance Nebraska’s economy, increase our work force and enhance our standard of living.
But sacrifices need to be made. State spending will be scrutinized in order to make tax relief and other priorities feasible so our state can become more competitive with surrounding states. Today, a young Nebraska couple working as a nurse and police officer pay the same tax rate as some of our wealthiest citizens, and that’s unacceptable. Our tax structure needs to be updated, not only the rate of taxation, but also the brackets that people fall into as well.
We also need to repeal the estate tax. This is vital to help Nebraska’s small business industry and agricultural producers become stronger. Only one of our six bordering states still imposes this tax, and our economy will benefit from its elimination. Small business owners, family farms and successful Nebraskans shouldn’t be punished for providing a great service to our economy.
At the root of all economic development is our existing business. Retaining and expanding these businesses already in our state is a crucial aspect of building a strong economy. After all, if the companies here in Nebraska aren’t successful and happy, then attracting other companies and people here is going to be extremely difficult. In our department, we have more than 30 people who work on business development so that we can sustain good relationships and success rates. Whether it’s our job-training programs or improving the quality of life, existing businesses and their employees mustn’t be neglected.
In 2006, Forbes magazine ranked Nebraska the seventh-best state in which to do business. While we are proud of this fact, there is still much work to be done. It is essential that we stay committed to fostering an environment that entices companies to invest in all that Nebraska has to offer.
- Story Courtesy of the Norfolk Daily News
