From Site Selection magazine, November 2000
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New Mexico
After rejecting two budgets offered by the New Mexico Legislature, Gov. Gary E. Johnson called a special session on March 28 to address the budget for fiscal year 2001. In mid-April, the governor signed the resulting budget, but still was not pleased, saying that it did not produce the reforms needed in education reform and economic development to move the state forward.
Although Johnson's proposed personal income tax cut was not included in the budget, several tax cuts for New Mexico businesses were. The new budget provided for tax credits for firms that conduct research and development activity in New Mexico and for small business outreach activities by Sandia National Laboratories. The plan also included a gross receipts tax deduction for aircraft manufacturers.
Education funding also increased for FY2001. Public school spending, for example, increased to $93 million, up almost 6 percent. Higher education spending grew by 4.4 percent, or $24 million.
The New Mexico Economic Development Dept. (NMEDD) also established ePortNM to make it easier for businesses to relocate and expand in the state. As the newest component of the NMEDD's Web site, ePortNM provides a searchable database of state business licenses, permits and applications. Currently the database contains 326 of the licenses, permits and certifications issued by the state, and 141 of those are available for downloading online.
Governor: Gary E. Johnson (R) 505-827-3000
In recent years, New York has made a new name for itself with extensive tax cuts, bringing the state back to its powerhouse status as a business location. And with recent legislative changes, that isn't about to change.
In the FY2000-01 budget, Gov. George Pataki expanded the state's already successful Economic Development Zone (EDZ) program into the new Empire Zone program. The new Empire Zones will provide a tax reduction credit and a real property tax credit, both effective Jan. 1, 2001, and a sales tax exemption for tangible personal property and services, effective March 1, 2001. These tax credits are in addition to the former EDZ programs' five-year wage tax credit, 10 percent investment tax credit, sales tax refund for building materials, 25 percent zone capital tax credit, real property tax abatement and utility rate reductions.
The FY 2000-01 budget also eliminated the gross receipts tax for manufacturers and industrial energy customers, which will be retroactive to Jan. 1, 2000. For all other businesses, the tax will be eliminated over a five-year period. The state estimates that when fully implemented these measures will create $330 million in annual tax savings.
The sales tax on transmission and distribution of gas and electricity for commercial customers was also eliminated under the budget, creating an estimated $150 million in savings for New York businesses. The tax cut will be phased in over four years beginning Sept. 1, 2000.
Pataki also boosted the biotechnology business in New York by making available $20 million in funding. The new biotech development program will provide funding for biotech research and manufacturing facilities, including support for construction and business capital for commercialization.
Governor:B George E. Pataki (R) 518-474-7516
North Carolina Gov. Jim Hunt continues to move his state further into the 21st Century with bold new Internet-related moves. In April, the governor announced a landmark agreement between the state's three top communications companies to work with state government in bringing affordable, high-speed Internet access to all parts of North Carolina within three years. The agreement between BellSouth, Sprint and GTE is one of the first of its kind in the nation, and it provides rural parts of the state affordable, high-speed Internet access. The agreement also includes plans to help more residents own computers and Internet-related equipment, as well as help citizens obtain information on the availability of Internet services and promote the development of e-government online applications.
North Carolina also launched its e-government initiative on Aug. 1. NC@YourService is one of the first state Internet portals in the country that lets citizens, businesses and state employees create a personalized home page by selecting items from a diverse list of choices. The portal was created through a partnership between the state, Andersen Consulting, Yahoo! and BellSouth. Included among some of the site's features are tax information, permits, licensing, vehicle registration and weather.
Education of the current and future work force was also high on Hunt's wish list this year. Signing the budget into law on June 30, North Carolina will now fully fund the Smart Start program in all 100 counties, and it will raise teachers' salaries up to the national average. Hunt has challenged the state to make its public education system the best in the nation by 2010.
The North Carolina General Assembly also placed a bond referendum on the ballot to provide $3.1 billion for North Carolina's community colleges and universities. State residents will vote on the proposal on Nov. 7.
North Carolina also recently established the nation's largest rural investment fund, known as the Economic Opportunity Fund. The state's largest banks contributed $30 million, which combined with expected state and federal funds will leverage more than $100 million in investment funds for rural companies.
Governor: James B. Hunt Jr. (D) 919-733-4240
Although North Dakota is considered more a rural state than a high-tech hub, the state is definitely moving forward with major high-tech initiatives. In June, the state launched a statewide broadband telecommunications network program that will connect 552 locations in 194 cities throughout North Dakota. The network will provide universal access to high-speed telecommunication services.
The initial phase consists of the state spending $3 million to roll out the network to 64 communities and 218 locations this fall. Phase two will take place after the 2001 legislative session. The goal is to have the network up and running in all 194 cities by the fall of 2001. The communities were chosen to be part of the network based on having one or more of five criteria: a high school, library, higher education facility, county seat or state government facility.
Gov. Ed Schafer and the state's Chief Information Officer Curt Wolfe are also coordinating an implementation plan that will include support services and programs to train educators, local officials and citizens to maximize the network's capabilities. This plan will be part of the 2001-03 executive budget recommendations.
One month prior to the IT network launch, North Dakota also revealed its new Web portal (www.discovernd.com) aimed at providing easier access to services and information from all state agencies. The portal is a gateway to information that is organized by function, not agencies.
Governor: Edward T. Schafer (R) 701-328-2200
"Making state government more accessible and more user friendly is a goal of my administration," says Gov. Bob Taft. And with that, the state of Ohio approved legislation that allows workers compensation claims to be filed and premiums to be paid online. The new initiative, known as the Dolphin Project, will allow customers to complete almost any workers comp transaction electronically. The Bureau of Workers' Compensation will accept these transactions as official documents. The Dolphin project will be implemented in four waves, with the first taking place in October 2000 and the fourth starting in April 2001.
Taft also moved the state forward in terms of e-commerce by signing into law House Bill 488, which gives electronic contracts, signatures and records the same legal standing as those created and signed on paper. The bill also contains guidelines for consumer protection and commercial contracts.
In an effort to establish Ohio as a leader in technology innovation, Taft also signed into law a bill to increase entrepreneurial activity at universities. The new law will allow university employees to take an equity position in business resulting from their technology. This will result in two positives for the state's high-tech industries. First, Ohio will be able to attract and retain top-tier faculty at its research universities, and secondly, it will result in more business startups and more new technology jobs.
In other pro-business moves, the state established a new state agency that will create a more efficient work-force development system. The Ohio Dept. of Job and Family Services was created with the merger of the Ohio Bureau of Employment Services and the Ohio Dept. of Human Services.
Governor: Bob Taft (R) 614-466-3555
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