‘Excelerating’ state focus of luncheon
Published 12:01 am Wednesday, February 17, 2016
By Cain Madden
The Natchez Democrat
NATCHEZ — From what he called the best view in Mississippi, Blake Wilson of the Mississippi Economic Council painted a picture of economic improvement in the state.
The president and CEO of the state’s chamber of commerce presented a vision for prosperity Tuesday during a luncheon at the Hotel Vue. In laying out MEC’s vision, Wilson started out by polling the audience on whether the audience believed their children or grandchildren would be able to remain in Mississippi to find good paying jobs.
The vote was close, but 48 percent said yes, compared to 44 percent believing the future good jobs are still out of the state.
“That’s a major improvement from five years ago, and it’s the same across the state,” Wilson said. “About 62 percent thought their children or grandchildren would have to leave.
“You can see that people are feeling more positive about the economy than they were five years ago. Still, 44 percent is high, and we’re going to have to work on that.”
The MEC focused on a top two — workforce and transportation — to bring the state up. Wilson presented four priorities to go with those focuses: Excelerate Mississippi, appointed superintendents, phasing out the franchise tax and increased workforce funding.
Wilson said Mississippi’s state, county and city roadways are crumbling and the bridges are dangerous. With Excelerate Mississippi, the MEC has studied the impact of every driver of the registered vehicles in Mississippi paying 37 cents a day, which would add to a $1.45 in savings over time through car maintenance. It would also be enough to fix the problem with the roads.
The funds could come from many sources, including increasing the gas tax. MEC did not recommend a particular funding mechanism.
“We haven’t raised our fees since 1987, our 18-cent gas tax,” Wilson said. “Our traffic has increased by 90 percent since then. Our vehicle count is up by 17 percent. Inflation is up 108 percent. And the cost of construction is up 200 percent.
“It’s not hard to see why we are falling far behind on our roads.”
Many counties in the state have an elected superintendent, but the Natchez-Adams County Public School District is already part of the reverse trend to appoint one. Local leaders, however, are pushing to have an elected, rather than appointed, school board.
The abatement of the franchise tax is something that most states are already doing, Wilson said, including Mississippi’s biggest competitor for industry, South Carolina.
“At the end of the year, only 11 states will be collecting this tax,” he said. “If we want to be more competitive, we have to get rid of this tax.”
Wilson said the tax is not one on a company’s profitability, but the tax of the corporate value. He said additional revenues in companies moving here would more than make up for tax revenue lost by dropping this tax, The MEC is proposing phasing out the franchise tax over the next 10 years.
The MEC wants to take $50 million in unused state unemployment compensation funds and put the money into the private sector and into the community colleges for workforce training.
Workforce was one of the last questions asked, and 58 percent polled said that the workforce is somewhat prepared — 39 percent not at all.
“So (Natchez Inc. Executive Director) Chandler Russ is out knocking on doors asking businesses to come to Natchez, it’s a good place,” Wilson said. “If a business asks if the other businesses believe that the workforce is prepared, and he answers, ‘They are somewhat prepared. It’ll be all right — let’s move to another question,’ do you think they’ll go looking for another community?
“We can reshape this perception, just like we did economic development in town, but it’s going to take your perspiration, your involvement.”
Wilson said you have to tap the kids on the shoulder and show them where the opportunities are.
“We need to work on workforce and transportation statewide,” he said. “If every community does its part, we can be the next jewel of the South.”