Adams County misses the cut. Under a proposed economic development plan from Gov. Ronnie Musgrove, counties with double the state’s average unemployment rate for 12 months would be labeled &uot;tax-free zones.&uot;

With the exception of school taxes, companies willing to locate in those economically depressed areas could avoid paying taxes.

Last week, Musgrove proposed a plan to outline a direction for improved growth. He also called an Aug. 28 special session to ask lawmakers’ approval of certain aspects of the plan, including the tax incentives for businesses.

&uot;What we want to do is remove as many counties as possible (from the list of those whose unemployment is double the state’s average),&uot; Musgrove said last week. &uot;That’s the objective, to help all counties.&uot;

According to figures from the Mississippi Employment Securities Commission, Adams County’s jobless rate for calendar year 1999 is below 200 percent of the state’s rate.

So many local leaders are hoping that aspect of the plan could be modified to include counties like Adams.

&uot;I’d like to see the 200 percent dropped to 150 percent,&uot; said state Rep. Andrew Ketchings, R-Natchez. &uot;I’d like to find out what additional counties that would bring in.&uot;

Neighboring Jefferson and Wilkinson counties — both with at least triple the state’s unemployment rate — would more than qualify under Musgrove’s proposal.

But if the standard was dropped to 150 percent, both Adams and Franklin counties, according to last year’s unemployment figures, would also qualify.

State Rep. Phillip West, D-Natchez, agreed the incentive package should be more flexible to include counties such as Adams.

&uot;Even though we may not have double the unemployment, we have just as much need (for industry),&uot; West said.

Former Natchez mayor and businessman Larry L. &uot;Butch&uot; Brown agreed Adams County would benefit from a change in the standard.

And Brown also recognized surrounding counties would likely benefit from the 200 percent standard – and any benefits they receive would help Natchez, he said.

&uot;As a practical matter, Jefferson County, Franklin County, they’re a part of Natchez,&uot; Brown said. &uot;Certainly this area deserves some special attention.&uot;

Beyond the tax breaks, local leaders have mixed views on the plan.

West, who called it &uot;long overdue,&uot; said he will support the plan in the Aug. 28 special session, although he has some concerns that it does not go far enough to encourage development in all areas of the state.

West also said he would like to see a more flexible standard for a proposal to give tax breaks to companies which would pay 125 percent of the state’s average wage.

&uot;Nothing’s going to be resolved overnight,&uot; West said. &uot;But this is probably going to inspire all persons — public and private — to focus on all aspects that will encourage economic development.&uot;

Ketchings, who said he has not been over the plan with a fine-toothed comb yet, said he has some reservations about it – including the need even to call a special session.

Musgrove has said much of the plan does not need legislative approval.

Musgrove’s plan also calls for a renaming of the Mississippi Department of Economic and Community Development — a move which does require lawmakers’ OK&160;– and the opening of a Washington, D.C., staffed by the governor’s employees.

&uot;I don’t know that it’s necessary to open an office in Washington,&uot; Ketchings said.

He is also wary of a proposed &uot;Ace fund,&uot; which Musgrove said would be made of public and private monies and used as a &uot;closing fund&uot; to provide quick money for economic development projects.

&uot;I don’t want to give him carte blanche&uot; to disburse the money, said Ketchings, who also does not think it would be practical to convene the Legislature any time a fund distribution is needed.

&uot;Maybe we could get a small committee together&uot; to make the decision, he said.

Ketchings said he is interested to see what bills are drawn from the plan for the Legislature’s consideration.

Musgrove has said he expects the special session to last about two days. The Democratic governor said he is not asking for any funding appropriations in this month’s session but will likely ask for funding next spring.

Brown, who also had not reviewed the specifics of the governor’s plan, said he is pleased with what he has seen.

&uot;The most important aspect of it is that he’s doing one,&uot; he said.

&uot;We do need to stay current and stay out front in economic development.&uot;