March 26, 2007
Dear Fellow Nebraskans:
I write this week with some excellent news to share regarding Nebraska’s economic health. During a recent international economic development forum, a list of the nation’s business friendly states was unveiled. For the first time in the four year history of the survey Nebraska was named one of the top 10 pro-business states in the nation. Previous reports ranked Nebraska 17th in 2006, and 18th in 2004 and 2005.
The publisher of the report cited efforts by the staff of the Nebraska Department of Economic Development to promote the business incentives offered as part of the Nebraska Advantage in helping propel Nebraska into the top 10.
The 2007 Corporate Top 10 Pro-Business States study compares the job creation and retention efforts of the nation’s state and federal governments, ranking states based on factors such as tax rates, human resources policies, energy costs, infrastructure spending, and a state’s net job creation statistics to name just a few.
The evaluation also considers incentive programs and the productivity of state economic development departments, both of which are controlled by individual states and contributed heavily to Nebraska’s improved ranking. The 2007 report also recognized Nebraska for pro-business strategies as a right-to-work state, an excellent employment index, low electricity rates, and strong quality of life ratings.
The fact that Nebraska is being recognized as a pro-business state is something we can all be proud of. It’s evidence that the efforts we’ve made to improve our tax climate and provide competitive incentives for businesses to locate and expand here in our state have been noticed. And it is further proof that the Nebraska Advantage continues to have a positive impact on our ability to attract businesses interested in creating quality jobs.
The work we’ve done to update our business incentives package marked a turning point for our state. With nearly 100 companies expressing an interest in the new incentives we have to offer, the program has the potential to spur the creation of more than 9,100 jobs and investments totaling more than $3.5 billion in our state.
This success is evident in the 7th overall ranking given to our incentives package and our economic development productivity as part of the pro-business survey. However, it’s important to point out that compared to other states; we’re ranked 32nd and 34th respectively in terms of our individual and corporate income tax systems.
While our work to promote the Nebraska Advantage is perhaps the most important thing that’s helped propel our state into the top 10, this year’s survey is further evidence that failing to address our tax climate now and in the years to come will have a significant impact on our future competitiveness as a state. That is why I continue to push for lower tax rates and the reform of our income tax system as a cornerstone of my legislative agenda.
The Nebraska Advantage continues to be an incredibly effective resource in attracting new business, but having a competitive tax climate is another important part of the equation. Given our success in promoting the Nebraska Advantage, I know that our economic development team has the potential to play a key role in helping Nebraska communities capitalize on the job creation opportunities lower taxes for businesses, individuals and families would provide.
We recognize that economic development is an increasingly competitive field, and much of the credit for our top 10 ranking should go to the people working each day to improve our business climate.
Our status as a top 10 state is another tool we can add to our efforts in business recruitment, and I want to thank our economic development staff in particular for their work to market Nebraska as a great place for new business development.
