Wednesday, January 6, 2010

State deficits may hurt efforts to attract jobs

The state of Arizona is facing a projected $4.7 billion but like states all around the country, elected leaders are still seeking a way to attract businesses, and the jobs they represent, to their state.

An article on this effort in the Arizona Republic caught my attention with this warning:

Jack Boyd, a Princeton, N.J., consultant, said he and other consultants are telling clients looking for new sites to be careful about locating in states with high deficits.

"What concerns me is who is going to put the fiscal houses in order for states like Arizona, California and New Jersey. Our concern is that it will be on the backs of the business community," he said.

So states may be judged not just on their reputation for taxes and regulation, but also on how they have managed their fiscal responsibilities. The states that have mismanaged their finances and may have to take drastic steps to correct past mistakes may not even be seriously considered by businesses looking to relocate, expand, or start up.

No Runny Eggs (H/T Fox Politics) takes a look at the scary state of Wisconsin's finances. If businesses are avoiding states like California, can Wisconsin be far behind? At a time when Wisconsin needs to attract new business, our inability to manage our finances may prove a burden too great to bear. Putting Wisconsin back on sound fiscal footing will absolutely be job number one for the governor and legislature elected in 2010.

It's often said that mid-term elections matter little and are primarily noticed only by those voters that are the most ideologically motivated. It remains to be seen if that is the case in Wisconsin this year. What is not in question is the fact that how the next government addresses our financial mess and the issue of jobs will directly impact all of the people of Wisconsin. This could make 2010 the most important mid-term in a long time.

1 comment:

Tax online said...

its a common fact State Deficits must hurt Jobs.
Tax online