Posted on Jul 18, 2022
Even at $200,000 a job, Kansas paid below the going rate in its deal to land a Panasonic factory
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Kansas is giving Panasonic $829 million in incentives to build a $4 billion electric vehicle battery plant that promises 4,000 employees. Other states have spent more, on average, to lure employers.
Even at roughly $200,000 per job, analysts say the tax breaks and other incentives Kansas put on the table to bring Panasonic’s battery-making plant to De Soto fall short of the giveaways other states have made in recent years.
Still, the tax dollars devoted to bringing the $4 billion electric vehicle battery plant to Johnson County bust any records in Kansas for tempting a business to the state.
And few details have been made public about the $829 million incentive plan that was negotiated behind closed doors.
The factory will be the largest economic development plan in Kansas history. The company is promising 4,000 jobs subsidized at the rate of $200,000 per worker.
Even at roughly $200,000 per job, analysts say the tax breaks and other incentives Kansas put on the table to bring Panasonic’s battery-making plant to De Soto fall short of the giveaways other states have made in recent years.
Still, the tax dollars devoted to bringing the $4 billion electric vehicle battery plant to Johnson County bust any records in Kansas for tempting a business to the state.
And few details have been made public about the $829 million incentive plan that was negotiated behind closed doors.
The factory will be the largest economic development plan in Kansas history. The company is promising 4,000 jobs subsidized at the rate of $200,000 per worker.
Even at $200,000 a job, Kansas paid below the going rate in its deal to land a Panasonic factory
Posted from kcur.org
Tesla Motors
Jobs
Employment
Economics
Posted 2 y ago
Responses: 2
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Interesting...and I know there have been some pretty significant "bidding wars" before
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PO1 William "Chip" Nagel
..."The factory will be the largest economic development plan in Kansas history. The company is promising 4,000 jobs subsidized at the rate of $200,000 per worker.
Additionally, the package to Panasonic appears to be the fourth largest in the country since 2018, according to a subsidy tracker from Good Jobs First, a group largely skeptical about government giveaways to businesses.
Greg LeRoy of Good Jobs First said Kansas would spend less than the national average for each new job created.
“There are certainly some deals that are more expensive,” LeRoy said.
“In fact, the average cost is $658,000 per job, so more than three times higher.”
Gov. Laura Kelly and other state officials touted the deal as a major victory, with Kansas beating out Oklahoma to land Panasonic. They said the plant would provide a large boost to the state’s economy.
But some economists don’t think “megadeal” incentive packages are a good buy.
Michael Farren, an economist at George Mason University, said he opposes states competing with each other to offer ever-increasing incentives. Instead, he said, states should work together to create fairer negotiations with businesses."...
..."The factory will be the largest economic development plan in Kansas history. The company is promising 4,000 jobs subsidized at the rate of $200,000 per worker.
Additionally, the package to Panasonic appears to be the fourth largest in the country since 2018, according to a subsidy tracker from Good Jobs First, a group largely skeptical about government giveaways to businesses.
Greg LeRoy of Good Jobs First said Kansas would spend less than the national average for each new job created.
“There are certainly some deals that are more expensive,” LeRoy said.
“In fact, the average cost is $658,000 per job, so more than three times higher.”
Gov. Laura Kelly and other state officials touted the deal as a major victory, with Kansas beating out Oklahoma to land Panasonic. They said the plant would provide a large boost to the state’s economy.
But some economists don’t think “megadeal” incentive packages are a good buy.
Michael Farren, an economist at George Mason University, said he opposes states competing with each other to offer ever-increasing incentives. Instead, he said, states should work together to create fairer negotiations with businesses."...
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