(Source: Stateline.org)
WASHINGTON _ While the Tennessee Legislature was slashing programs and laying off 700 state employees to close a budget gap last week, Gov. Phil Bredesen was touring a manufacturing company in the Swiss village of Birr. From Switzerland, it was on to Germany and Poland for Bredesen, a two-term Democrat.
The coincidence of the state's top elected official bouncing around Europe as state lawmakers were struggling with agonizing budget choices back home may appear irresponsible at first. But Bredesen actually was on a calculated mission to attract jobs he says could help Tennessee get through the economic downturn.
"Now is not the time to pull back or retrench," Bredesen said.
Bredesen's job-recruiting trip points up a little known aspect of the recession: States may be losing thousands of jobs, but many states are spending millions of dollars and approving new incentives to create jobs, with some success. Economic development efforts don't come to a halt during a downturn; they're needed more than ever.
"Certainly there are very current and pressing budget difficulties and it makes sense to consider priorities," said Ian Pulsipher, an economic development specialist with the National Conference of State Legislatures. "At the same time, economic development is much more long-term than fixing this year's state budget. It's not something you spend money on one year and neglect the next."
The latest unemployment figures confirm the worst is not over for states: The federal Bureau of Labor Statistics reported Friday that all but two states reported increases in the number of jobless from April to May. Still, state officials have been claiming large and small victories in their attempts to generate jobs.
North Carolina officials say a new building in Raleigh housing the state National Guard and three other agencies will create 4,200 jobs, while Indiana officials say 50 workers will be hired for the expansion of a corndog and fritter manufacturer in Muncie. The Air Force's newest major command, the Global Strike Command, will produce 1,000 jobs in northwest Louisiana, while U.S. Ordnance Inc. will hire seven people at its Nevada plant that makes M60 machine guns for the U.S. government.
Some of the job activity involves America's best-known brands. The upstate New York plant where Lunchables meals are produced for the East Coast will expand and add 50 jobs. Coca-Cola just opened a new bottling plant for Powerade and VitaminWater in Baton Rouge, La., with 113 new jobs in three years. Greenies dog and cat treat manufacturer Mars Inc. is creating 157 jobs with a research and development unit in North Kansas City, Mo.
Hilton Hotels Corp. is moving its headquarters from Beverly Hills to Fairfax County, Va., outside Washington D.C., creating 300 jobs over three years.
