Foxconn Fiscal Impact Soars Into The Billions

posted by Gregory Jon - 

via MacIver News Service By M.D. Kittle

"Most state expenditures do not result in private investments of this nature," the LFB report states. "The project would also provide greater employment opportunities for the state's present and future workforce, and add a new sector to the state's manufacturing economy."

Then there are the trades jobs needed to construct a dozen or more buildings on the proposed 20 million-square-foot manufacturing footpad. DOA estimates peg an average annual employment of some 10,200 construction workers and equipment suppliers earning average total compensation of $59,600 during the four-year construction period. Total income is estimated at $2.4 billion.

Another 6,000 indirect and related jobs are estimated to be created during construction, with average compensation of $49,900, according the Fiscal Bureau report. The total increased state tax revenue - primarily income and sales taxes - associated with the construction period is estimated at nearly $190 million.

DOA estimates a total of 22,000 indirect jobs and those secondary positions (suppliers) supporting Foxconn's operations will be created, with combined annual wages of $1.1 billion per year beginning in 2021.

"The way to judge this project is not by government revenues, not by government figures. It's what it means to our overall economy," said state Rep. Adam Neylon (R-Pewaukee), chairman of the Assembly's Jobs and Economy committee. The committee held a hearing on the bill last week.

Foxconn "will grow our GDP, it will have a tremendous impact on our economic activity in the state. A lot of people will benefit because of this incentives package. We have a situation where we will be attracting talent instead of losing it," Neylon added. "It's a mistake to think that government revenue is the end goal. The ultimate goal is economic benefit, not how much more state government can take in and spend."

Neylon said his committee still plans to vote Thursday on the bill, with amendments. The lawmaker says he has received at least 50 amendment ideas on the legislation since the bill was introduced last Tuesday, from technical matters to more significant issues such wetland relocation.

"I think reading these new fiscal analyses reaffirms a lot of what we were told during the public hearing and what we were led to believe," Neylon said. "It also exposes some areas we are working on to clean up or clarify or make sure there are safety nets in place within the language of the legislation."

The complete story here > Foxconn Fiscal Impact Soars Into The Billions



Gregory Jon

Gregory Jon

Gregory Jon has been a big part of the Milwaukee radio scene since 1991. Read more

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