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What's happening in your state?

By now I hope you are familiar with the issue “The 
Economic Wars Between the States.”  This issue is 
now receiving national media attention as well as 
attention from the U.S. Congress and the General 
Accounting Office.  To keep up with the rapidly 
occurring developments we are updating Senator 
Horn’s web-site as frequently as possible with 
reviews, abstracts, articles, studies, publications 
and editorials on these and related issues.  The 
address is:


Every week we make new contacts in a different 
state, whether it’s a State Senator from Florida or 
a Congressman from New Jersey or a County 
Commissioner from some county - the interest is 
growing rapidly.  The most frequently asked question 
is What is happening in my state or in neighboring 
states?  Who can I contact?  The problem is it is 
very difficult for us to keep track of this 
information in a concise manner.  
Actions in other states that we are aware of:

Indiana: The Interstate Business Protection Compact. 
 Terms of the Compact recognize that unnecessary 
interstate relocation of businesses present problems 
to the economic vitality of every state.  The 
Compact calls for entered parties to agree to 
establish standards for protecting existing 
businesses and refrain from providing relocation 
incentives at the expense of other members.

Nebraska: The Review Incentives Program Committee is 
currently reviewing the costs and benefits of tax 
incentives granted to businesses.  The Committee is 
examining tax shifts resulting from incentives, the 
impact of incentives on public infrastructure and 
community public service funding needs, and impact 
on employers and employees of firms receiving 
benefits versus those employers and employees not 
receiving tax incentives in an effort to determine 
the success of Nebraska’s incentive program.

Minnesota: Minneapolis Federal Reserve Bank economic 
analysts Melvin Burstein and Arthur Rolnick argued 
in the June edition of the Bank’s quarterly 
publication, “The Region,” that Congress should act 
to end economic warfare between states for sports 
franchises and other businesses.

Ohio: Last week, the Ohio Legislature’s Economic 
Development Study Advisory Committee met to discuss 
the overall impact of Ohio’s entire economic 
development and business assistance portfolio.  
Probable issues for investigation include the affect 
of incentives and abatements on Ohio’s public 
schools and infrastructure funding, urban sprawl and 
the loss of agricultural land associated with site 
incentives, and the success of development programs 
in creating and improving job quality and business 
expansion in the state.

As familiarity with incentive wars grows, we have 
received an increasing number inquiries regarding 
individual state mitigating efforts across the 
United States.  In an effort to maintain accurate 
and informative records we would be greatly 
appreciative of any information pertaining to 
current or proposed efforts in your state to 
investigate or mitigate the wasteful economic 
warfare between the states.  

We will post this information on the web-site after 
we have compiled it.  Thank you in advance for you 
insight as to what’s happening in your state?

Ray DiRossi
Aide to Senator Horn