From Harford County government:
County Executive David R. Craig today issued the following statement to express his appreciation to the County Council for their approval of his request for a training grant from the county’s Office of Economic Development for an Edgewood technology development firm:
“On July 10, the Harford County Council approved a Workforce Technical Training Grant in the amount of $100,000 for a company headquartered in Edgewood at the request of my administration. I thank the Council for their support on this specific project and for their shared commitment to economic development in the county.
“By granting the company these matching funds, they were able to leverage a $750,000 loan package from the state. The company, which currently has 222 employees at their Edgewood facility, will have 325 employees by the end of 2013, at an average salary of $72,000 as a result of these funds, which would provide an additional $100,000 to $130,000 in income tax revenue to the county annually. In addition, the company will be making $1.25 million in improvements to their facility in Edgewood, which will generate approximately $32,500 in additional revenue to the county each year.
“Access to a skilled work force is a key factor in a company’s decision to relocate or expand. Workforce development is a partnership among government, higher education, K-12 schools, and industry seeking to foster a productive, skilled, and competitive workforce. The Office of Economic Development (OED) offers the Workforce Technical Training Grant on a competitive basis, and these grants provide incentives to local companies to accelerate the delivery of technical training for employees. Over the last three years OED has provided training grants to more than 75 Harford County companies, both large and small, and within a broad range of industries.
“Our economic incentives help secure our county’s competitiveness in attracting jobs and business growth to our area. New jobs support Harford County families and these families support other Harford County businesses, thereby strengthening and growing our local economy. As other states and jurisdictions have been forced to raise taxes, here in Harford County our efforts to expand our tax base have allowed us to twice cut our tax rate and reduce the property tax cap. It is my intention to continue efforts to expand our tax base so that we can continue to lower the tax burden on individuals and families. Helping businesses grow makes lowering taxes possible.
“A lot has been made of the fact that the company involved in our most recent business incentive program has their global headquarters in London. That is true, however the US headquarters for the company is right here in Edgewood. The employees are Americans. The supervisors are Americans. And many of them are Harford County residents and taxpayers. When they have job vacancies, Harford Countians have the ability to apply and have the opportunity to be hired. We are thrilled to have them in Harford County, and we were happy that we were able to assist them.
“There are two ways to maintain government services in an inflationary environment: raise taxes and fees or expand the tax base. A true capitalist will seek to expand the tax base. Corporations coming to an area pay salaries and those county residents pay income taxes, the company also pays utility fees, real property tax, and personal property taxes. New companies also use existing business services which multiplies the positive impact on the local economy.
“The market for attracting new businesses is extremely competitive and global in nature. Some states and counties offer low cost or no cost land plus free water and sewer services. Other states have extremely large funds that are used to entice firms. As examples, Delaware just landed an Amazon distribution center with a $6 million package, while Texas saw the expansion of Apple in Austin as a result of a significant contribution on the state’s part.
“Maryland has a significantly high cost of doing business. There must be some incentive for company executives to give us a look. Empty warehouses and offices have the same effect as empty houses in a neighborhood. When an area is void of activity, those that are doing business tend to leave as well.
“Business-friendly states like our neighbor Virginia are showing how government can help attract job creators in order to expand the tax base and enhance the workforce. Under the leadership of Governor Bob McDonnell, Virginia has distributed millions of dollars in loans and grants to businesses large and small, so that they can relocate, expand, or train employees. Virginia’s unemployment rate is 5.7% compared to Maryland’s 6.9% and the nation’s 8.2%. While Virginia has had a net gain in jobs this calendar year, Maryland has a net loss. Maryland lost 11,000 jobs last month alone according to preliminary reports from the Bureau of Labor Statistics. Despite this, Harford County has gained 5,000 jobs since the beginning of 2010.
“Sadly, many of the businesses that have relocated to Virginia did so by leaving Maryland. Rather than creating an environment welcoming to businesses, Maryland has driven both small businesses and large corporations out of the state due to over-taxation and over-regulation. This must change.
“Unlike President Obama, I do not feel that government is responsible for business success in America. It is the entrepreneur and the innovator who take risks and make sacrifices who have made this country the world’s number one economy. I do, however, feel that a business-friendly government can play a role in fostering an environment where a business can grow and thrive.
“Just as the President is wrong for insinuating that it is government, rather than the entrepreneur, that builds a business, so too are those so-called conservatives who would have us turn our backs on businesses when they come knocking on our door.”
Exec. Craig claims that Maryland has driven both small businesses and large corporations out of the state due to over-taxation. So his solution is to tax 99% of businesses even more to pay for the special favors that are handed out to the 1%.
Any way you spin it, this boils down to playing favorites. We pay taxes to support the community that we live in; not so that Craig and the County Council can play Santa Claus with their corporate friends.
David Craig is looking for the next job opportunity. He could careless about the citizens of Harford County. Wonder if he is going to pull a Harkins? He and Jim and Dion need to explain their actions. Why would we give money to a company that doesn’t need it? I used to like David Craig, but he is showing that he is in it for himself. Wonder if he is going to push for riverboat gambling in Havre de Grace.
David Craig’s economic policies are no different than O’Malleys and no different than Obama’s.
These Republicans that act like Democrats give the rest of us a bad name. Any how dare he say that those opposed to his state-socialism aren’t conservatives.
IF this is “business-friendly”, then we have come a long way from the party of freedom and free enterprise.
David Craig cannot be the voice of the Republican Party. I, for one, think that David Craig, being a fake conservative, should retire from politics after this term is up. Gubernatorial ambitions aside, he’s toast.
I resent being called a so-called conservative, as I suspect many others will. Remind me again, is Craig a Democrat or Republican? Because I really can’t tell anymore. Businesses knocking on our door is one thing, but businesses knocking on our door asking for free money is quite another – especially when they have lobbyists doing the knocking.
BAD SO-CALLED CONSERVATIVES; BAD JOE WOODS for not supporting government handouts. Shame on you all for not supporting the political views of the Democrats Obama, O’Malley, and O’Craig!
O’Craig you know who is knocking on the door now. Someone other than you for the Governor of Maryland!
I guess you need to line the pockets of big companies now so you and your lackeys will have a job with them in 2 years. I can tell you now it will not be in Annapolis!
Yesterday I woke up to read the exact same excuses and spin “explaining” why taxpayers have to foot the bill to pay for the expansion and training of a huge and highly profitable foreign company. Yesterday’s press release was from a liberal Democrat – Dion Guthrie. Today’s press release is from a so-called Republican – David Craig. Is a socialist with an “R” in front of his name any better than one with a “D” in front? I think not!
Hmmmm… the Tea Party candidate that was running against Craig got trounced in a Republican Primary, so why shouldn’t Craig be the voice of the Republican Party in Harford County since Republican Primary voters chose him, and his policies and beliefs, to lead the County?
I just don’t understand the opposition to a deal that says if you give us $100,000 worth of tax revenue, we’ll wipe out the $100,000 loan, with the County thinking that the next few years of tax revenue will provide a greater boost.
But also, I love the idea that this side of the Republican Party would give the Democrats such a major talking point as the Republicans voted against bringing 100 high paying jobs to the county in a deal that would pay for itself in a year. I know, you have principals, but with jobs being the number one issue, we’ll see how far principals go when the party espousing them is out of power.
Did these principals work to win Senate elections in Nevada, Delaware or Colorado? All winnable seats that had Republicans not elected the most Tea Party candidate and instead gone with a candidate espousing beliefs that the majority of the State actually held, then we would be looking not at Harry Reid as majority leader, but an actual split Senate, that could pass legislation rolling back some of Obama’s bad bills.
But let’s not look at what we can actually accomplish, and instead hold on to the idea that principals out of power are better than moving the ball toward the goal line at all.
Question from Joe Woods “if you don’t get the 100K will it affect your decisions to stay here?”. Answer “No”. After the “no” there’s no reason to give taxpayers money away. Because everybody else does it this way is the answer a 5 year old gives you.
The question was will you stay, not will you still close down your other facility and move all those jobs here. And I know you guys all think that those people are moving here with their jobs, but when a job is moved across state lines on average only 44% would move with that job, when it comes to moving from one country to another, you kind of can’t necessarily just move with the job because of immigration laws.
And along your comment about “because everyone else is doing it.” Why does the free market work? Becuase businesses compete against each other, so shouldn’t States and Counties compete against each other as well? And that competition benefits the people that live there, just as the free market benefits the consumers. Didn’t think I’d have to give you a lesson on that.
That makes no sense whatsoever. Honest open market competition between businesses has nothing to do with throwing taxpayer money to bribe those “chosen” by politicians to recieve them. That’s the antithesis of open markets. Personally could care less if our county executive was donald duck or belongs to the party of ducks…giving taxpayer money away for no good reason is wrong and to say we need to do it or someone else will is a poor excuse to continue a corrupt, expensive and destructive practice.
Money Tree,
I love the sentiment. Not sure how that works out in practice.
But if you are going to take aim at wasting money isn’t there a target rich environment of much more significant opportunities in HarCo, in Maryland and also at the Federal level?
Don’t disagree with that at all – this one has been pretty much served up like salad and therefore can’t exactly be ignored.
Businesses make decisions based on money, as they should.
They will go to where the competition is best.
You don’t think government should compete with each other to provide the best impact for both their citizens, as shown by your opposition to this deal which would bring in nearly $250,000 in added tax revenue in the first year and each year after that (even ignoring an inflation based increase in salaries in these types of jobs) because it is against your principals.
These principals are contrary to what mainstream Marylanders, and citizens of the United States feels based on poll results and the failure of those that espouse your beliefs in elections in competetive states, let alone solid blue states.
You are calling this a waste of funds even though the facts show that it will easily pay for itself over the life of the grant, because it is against your principals.
Please tell me why a business would move to Harford County, provide jobs and a tax base to the citizens under your leadership, when you are not willing to compete with other states or localities around you. The argument made against O’Malley and Obama is always about competition from other states/countries in why we need to reduce the tax burden.
Please admit that this isn’t about tax burden, it is about a principal of fairness, which is fine for you to believe, but remove the talk about waste and taxpayers from your argument because by all acounts this is a huge win for taxpayers.
So you actually believe that it’s a natural part of competition for these mostly million dollar companies to pit one town against another in a bidding war and using taxpayer funds to play the game? Keep throwing out the word compete as often as you want – this has nothing to do with competition.
I know for a fact that multi-million dollar companies make states compete. This is the job of Economic Development departments across the country. This is all they do all day. They create packages to lure businesses to their state instead of another. North Carolina actually bought land in the Research Triangle and gave it to businesses to build there in order to get job growth. Virginia offered Northrop Grumman millions more than Maryland to get their Corporate Headquarters. Take a look at what Republican Brian Sandoval did in Nevada to get Apple to build a $1 billion data center there. http://www.lasvegassun.com/news/2012/jul/01/state-economic-development-efforts-apple-deal-some/
What else would an Economic Development department do? Only a legislature can change the pernament tax burden, so local governemnts do what they can, in competition with each other, to bring jobs and an enlargened tax base to their people.
This is a cut throat competition because any time a politician can say they brought jobs to the area, especially in a deal with a 6 month payback period, then they are going to jump on that in this economy, and their people love them for it.
Counties and states are not businesses. They extract their “profit” by force. When they align themselves with business both become corrupted. That IS NOT the free market. Free markets operate outside of government influence.
Fact Check,
This isn’t about facts, or math or logic or even more jobs and tax revenue for HarCo for a meager investment.
This is about “We despise David Craig and we are going to get him no matter what the cost!”
Craig said “Maryland has a significantly high cost of doing business.”
Do you agree or disagree?
And if you agree, what do you propose be done about it?
I guess building a Walmart is “developing business” too.
Meh.