IBM likely candidate for proposed $4.5 million incentive
When Gov. Peter Shumlin on Monday announced a new scheme to induce a company in dire circumstances to stay in Vermont, he left little doubt that IBM would be a prime and likely candidate for the plan. He acknowledged as much Wednesday.
"I have read the same information that you have in the press about IBM," Shumlin responded after a press conference.
A recent Wall Street Journal article predicts the likely sale of the company's chip-making division will include the firm's Essex Junction plant.
With at least 4,000 on the facility's payroll there, IBM remains the state's largest private employer, despite a series of deep cuts to its ranks over the years and still more pending.
Shumlin's proposal would - at the governor's suggestion and with the approval of a small panel of lawmakers - direct up to $4.5 million to any company on the verge of closing up shop or leaving the state. The money would come from the state's end of year surplus.
The money could go to any number of firms under a host of different circumstances. The Vermont Enterprise Incentive Fund also could be used to help lure an established out-of-state company to locate inside Vermont's borders.
Secretary of Commerce Lawrence Miller says the fund is intended for both speed and flexibility.
"It's meant to move at the speed of business, regardless of the speed of the Legislature," Miller said.
Sen. Kevin Mullin, R-Rutland and chair of the Senate Economic Development Committee, says the concept introduces something new to the state's tool chest, at a time when larger and richer states like New York are digging deep in their coffers to compete for jobs.
"We bash the governor all the time if we lose jobs," Mullin said Wednesday. "We ought to be able to give him the tools to create or keep jobs."
The Vermont Enterprise Incentive Fund proposal will be attached to pending legislation that likely will go to a conference committee between the House and Senate economic development committees. As of now, it is not being considered as a permanent statute.
"It will be by the time it gets out of my committee," Mullin said.
TALK TO US
If you'd like to leave a comment (or a tip or a question) about this story with the editors, please email us. We also welcome letters to the editor for publication; you can do that by filling out our letters form and submitting it to the newsroom.