Economic development wins and losses

During the 2019 session the Legislature focused their attention on economic development efforts in rural and underserved areas of the state. SB 5511 establishes a new statewide broadband office and grant program to expand access and tools to unserved areas of the state. HB 1324, establishes a study to look at programs incentivizing private investment and job creation in rural and distressed communities.

The Legislature also appropriated funds for rural economic development projects through the state’s Community Economic Revitalization Board (CERB) program. The final budget included an additional $8.6 million for CERB’s public facility loan and grant program, and $3.5 million for the CERB rural broadband infrastructure program.

AWC’s economic development priority bill, SB 5564, came up short in 2019 after failing to get voted out of the Senate Ways & Means Committee. If passed, the bill would have allowed local governments to compete for state sales tax credits to finance public infrastructure improvements that spur local private investments. During the interim, AWC will continue to work with cities and stakeholders on an economic development infrastructure funding tool related to tax increment financing, for consideration in the 2020 session.

City priorities – Outcomes

PRO – Passed SB 5511, creating new tools and resources for expanding broadband access in unserved areas of the state.

CON – Failed to pass SB 5564 for a new infrastructure financing tool to support economic development.

Economic development bills