Taxpayer funded economic incentives are a fact of life for communities and regions throughout the U.S.  Until Federal legislation is enacted that bans or limits this activity on a national scale, Greensboro and the surrounding region will have to pay to play in this arena. 

In FY 02-03, Greensboro taxpayers reimbursed $1,119,903.00 to five local businesses that have entered into Economic Development Incentive Agreements with the City.  These agreements were entered into with certain guarantees of performance and job creation.  This figure falls to $554,253.00 this year because the final reimbursement to RF Micro is considerably lower than year’s past. Such cash incentives, while unsavory in my opinion, have served their purpose in helping Greensboro attract new jobs. The practice will continue into the foreseeable future, the key is for City Council to make such incentives provide the most “bang for the buck” that we can muster.  Some strategies:

1. Limiting exposure - I will propose that The City Council adopt a cap on the amount of incentives that are available.  A revolving fund created by one third of one percent of Greensboro’s current budget would yield approximately $1M for the fund. 
2. Small/Large Business Incentive Pool - Two thirds of the annual fund should be earmarked for attracting or expanding business concerns grossing in excess of $5M in pre tax profits in the applicant’s current fiscal year.  The balance of the fund would be reserved as available incentives for attracting or expanding businesses falling below the $5M threshold.
3. Elected Accountability - I will further propose that all future incentives will be “front loaded” as much as possible with the largest percentage of the reimbursements corresponding with the terms of office of the Council that adopted the incentive.  This practice will ensure voter accountability of the practice.
4. Zero Sprawl - Companies that apply for taxpayer-financed incentives must locate or expand their businesses in areas where Greensboro currently has the infrastructure (water, sewer, roads, etc) in place to encourage in-fill development.  If this in unfeasible for compelling reasons, the company must follow growth and time-line plans according to the recently adopted Comprehensive Plan.  No incentive will be considered for any company who adds to Greensboro’s urban sprawl.
5. Ozone Reduction - Companies that apply for incentives must agree to adopt, as matter of policy, the applicable ozone reducing strategies outlined by the Piedmont Triad Council of Governments.
6. Welfare to Work Hiring - Companies that apply for incentives will be required to use local “welfare to work” training centers as their first source in hiring for non-managerial positions.  The company will not be required to hire people referred by such agencies but they will be required to consider such referrals and hire the referral if qualified for the position.
7. Wage Standard - Companies that apply for incentives will be required create jobs that pay more than the current average wage for our area.
8. Health Insurance – Companies that apply for incentives will be required to provide for at least 50 percent of the cost of their employees’ health insurance.
9. Non-discrimination – Companies that apply for incentives will be required to make hiring decisions without regard to race, gender, religion, age, political affiliation, national origin, sexual orientation, physical or mental disability or any other non-job related factor, except when certain physical and mental requirements are bona fide occupational qualifications.