Editor's Note: This is one in a monthly series on issues in the 2010 gubernatorial race produced by the Tennessee Newspaper Network, a content-sharing coalition that includes the Chattanooga Times Free Press and newspapers in Memphis, Nashville and Knoxville. Complete responses from the candidates are online at timesfreepress.com.
By Chas Sisk
csisk@tennessean.com
The six major candidates for governor say they would continue to offer tax breaks to companies that move or expand their operations in Tennessee, indicating that Gov. Phil Bredesen's playbook for economic development largely will remain intact regardless of who wins this fall's election.
All six candidates would consider offering tax credits of up to $100,000 to companies that move their headquarters to Tennessee, they said in response to a questionnaire on economic development sent by the Tennessee Newspaper Network.
The candidates -- former House Majority Leader Kim McMillan and Mike McWherter for the Democrats and Shelby County District Attorney General Bill Gibbons, Knoxville Mayor Bill Haslam, Lt. Gov. Ron Ramsey and U.S. Rep. Zach Wamp for the Republicans -- also said they would offer job-training tax credits and infrastructure development grants to help bring companies to the state.
"I'm not surprised," said Michael Randle, editor and publisher of Southern Business & Development, a trade magazine that tracks economic incentive packages. "You can't have a vanilla incentive package to land one of these deals, and they (Bredesen administration officials) kind of stepped up to the plate."
Since taking office in 2002, the Bredesen administration has enriched the state's incentive offerings. Relocation specialists credit his policies with helping the state convince Volkswagen AG to build a $1 billion factory in Chattanooga, Nissan North America to move its headquarters to Franklin and General Motors Corp. to retool its Spring Hill plant.
The candidates said they would continue to offer those incentives to big companies in at least some situations. Some also said they could extend tax incentives to smaller companies.
"After all, small businesses are what fuel our state's economic engine," said Mr. McWherter, a Jackson beer distributor and the son of former Gov. Ned Ray McWherter.
Some also said they would make subtle changes to the program to ensure the incentives actually are producing the promised benefits.
"One possible change I would like to look at in our jobs tax credit is factoring in the average salaries of new jobs created rather than just looking at the number of jobs," Mr. Gibbons said.
The candidates also said they would work with the Tennessee Valley Authority on economic development projects. Likewise, they said they would recruit companies in the alternative energy sector.
"I believe that Tennessee has the capability to become the No. 1 alternative energy manufacturer in the South," said Rep. Wamp, who represents Chattanooga and Oak Ridge in Congress.
Differences on TNInvestco
The candidates were more divided on the question of expanding the TNInvestco program, a Gov. Bredesen initiative in which Tennessee is offering $120 million in transferable tax credits to companies that invest in startup firms selected by state officials.
Ms. McMillan, Mr. Gibbons and Lt. Gov. Ramsey said they would expand it. But Mr. McWherter, Mr. Haslam and Rep. Wamp said they would wait, either until the economy improves or until results have been proven.
"While I support the idea and notion of focusing on entrepreneurship, any incentives or credits the state offers should be based on a clear potential for a positive, measurable return on investment," Mr. Haslam said.
The candidates also had divergent views on whether the state should ban "mountaintop removal" coal mining techniques, as has been suggested by lawmakers in the state Legislature and U.S. Congress.
Ms. McMillan, Mr. McWherter and Mr. Gibbons said they back an outright ban. Mr. Haslam said he thought a compromise was possible between the coal and tourism industries. Lt. Gov. Ramsey and Rep. Wamp said a ban is unnecessary because mountaintop removal techniques are not practiced in Tennessee.
"This is a straw-man argument pushed by those who want to drive up your monthly energy bill by ending all oil and coal exploration permanently in the service of radical environmentalism," Lt. Gov. Ramsey said.
But the candidates were united on another environmental issue: All six said they would try to stop radioactive waste from other states or countries from being sent to Tennessee.
"Tennessee should not become the dumping ground for radioactive waste from other states and other countries," Ms. McMillan said. "The public safety and welfare of Tennesseans must be our first concern."