A third of the $381 million spent by Arkansas' main economic development agency from 2012-14 went to one company: Big River Steel.
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The remainder was spread among about 300 other companies as part of the Arkansas Economic Development Commission's efforts to, in the words of its mission statement, "create economic opportunity by attracting higher-paying jobs, expanding and diversifying our state and local economies, increasing incomes and investment and generating positive growth throughout Arkansas."
Amendment 82, enacted in 2004, allows the state to fund projects so long as the funding does not exceed 5 percent of the state's general revenue from the past fiscal year.
In 2013, the Legislature authorized a $125 million bond issue for Big River Steel under the program. That mill is under construction. The company has promised 525 jobs.
Outside of Amendment 82, the largest program -- InvestArk -- spread $110 million across 96 companies. The incentive offsets the cost of new construction, but requires no job creation.
Tyson Foods received $12.3 million through that program -- more than any other company.
The Governor's Quick Action Closing Fund followed -- spreading $42 million to 33 companies and the Arkansas Venture Capitol Investment Fund. Nanomech was the No. 1 recipient, with $3.8 million in payments from the fund.
The fund is supposed to be used "in highly competitive situations to finalize an agreement with a company to locate in our state," according to the commission.
The Create Rebate spread $35 million across 38 companies. The two largest recipients -- Hewlett Packard and Caterpillar Inc. -- have paid back some of the money for failing to live up to hiring promises.
The rebate gives businesses a financial incentive equal to 3.9 to 5 percent of the annual payroll for new employees.
The Community Development Block Grant follows. That program granted $35 million to 41 companies.
Peco Foods, the No. 1 recipient, received $5 million from that program. The company has promised 1,300 jobs, more than any other project from 2012 through 2014.
That program is supposed to benefit people of low to moderate income, eliminate conditions of slum and blight, or assist in addressing an urgent community need, according to the commission.
The AEDC also administers the Equity Investment Tax Credit, Advantage Arkansas, Tax Back, ArkPlus, InHouse R&D and Target Business R&D programs, which collectively spent $31 million on 134 businesses.
Many businesses received money from multiple programs, such as Welspun Pipes, which took $4.5 million from the Community Development Block Grant, $2.25 million from ArkPlus, $1.7 million from the Create Rebate and $206,000 from Tax Back.
"We've helped build communities," said Kurt Naumann, deputy director of strategic planning for the commission. "We've helped sustain growth. We've helped keep industries viable."
Still, Arkansas spent less on economic development in 2014 than any surrounding state except Mississippi, according to the Council for Community and Economic Research, which maintains a database of economic development expenditures in each state's budget.
But per capita, Arkansas, which has the smallest population, ranked No. 4 of 7. Over the past decade, the average Arkansan paid $250 in taxes to advance economic development.
"When you ask if the existence of this particular incentive create jobs, I think you kind of go, 'I don't know at the end of the day'," said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas. "The incentives matter a lot on the margins."
An Arkansas incentive might make the state more attractive than Mississippi, but there are other factors involved in each business's decision.
"It's making sure that physical infrastructure is in good shape. You've got to have good roads, good water, good Internet," she said. "There's security, infrastructure. Does your wife want to live there? Do you want to live there? Is there something about the community that makes it a very livable place?"
Metro on 01/18/2016