CARNAHAN URGES STRATEGIC PLAN FOR ECONOMIC GROWTH

Democratic gubernatorial candidate Mel Carnahan Thursday called for the creation of a strategic plan for economic development in Missouri. He said the plan would get the state back on track providing jobs to citizens.

"Missouri government has been sitting on its hands during this recession," said Carnahan during an airport news conference here to announce his economic development plan.

"Missouri today lacks the planning and the leadership to launch an all out campaign for sustained growth, for high wage, high skill jobs, and for long term prosperity."

Carnahan, who is lieutenant governor, noted that based on recent statistics, "It is evident our present efforts in economic development are not working. A new approach is needed."

He pointed out that Missouri ranks 44th in the nation in the competitiveness of its existing businesses; 38th in average annual growth in the earnings of workers; 42nd in growth of new jobs in small businesses; and 48th in manufacturing capital investment.

Carnahan said he said he was particularly upset that "Missouri has no written comprehensive economic development plan ... this is intolerable. This shocking neglect of basic, fundamental planning cannot be tolerated any longer."

At the news conference here, one of several held around the state to announce the plan, Carnahan unveiled his 20-page plan entitled: "Jobs 2000." He stressed the plan will provide "fundamental changes" in the state's economic development strategy.

A key part of Carnahan's plan is to scale back on providing tax breaks and corporate recruitment that has been used in the past and instead focus more on helping businesses in Missouri to grow.

"Even in states that have highly effective recruitment programs, recruitment accounts for only a tiny portion of new jobs," said Carn~ahan. "Most new jobs - about 80 percent - result from the creation of new businesses and the expansion of existing small businesses already in the state.

"We're going to create an atmosphere where small businesses can grow in this state."

Carnahan contends that for too long economic development has been focused in Jefferson City, with little regard for local input.

Under his administration, the lieutenant governor promised, "We are going to decentralize economic development decisions." The state will assist local efforts, rather than make decisions for communities.

The Carnahan plan calls for creating a network of Regional Economic Development Offices around the state to work with local business leaders and government officials to help them make and implement economic development decisions in their communities.

"For the past 10 years, the Department of Economic Development has maintained that economic development decisions are best made at the state level by state bureaucrats," Carnahan observed. "But this is the wrong approach. Economic development decisions should be made at the local level with state assistance."

If elected, Carnahan said he would appoint a Missouri Business Council to guide the state's economic development strategy, to help develop the comprehensive plan, and to screen candidates for the job of director of the Department of Economic Development. Carnahan noted that the job should not be perceived as a political job.

The Carnahan plan also calls for an integrated infrastructure planning process to include planning for communications infrastructure, roads and highways, river ports, airports, solid waste facilities, water and sewer systems, and other facilities that are important to job growth and creation.

A proposed Missouri Research Alliance would coordinate research projects that could eventually lead to jobs. "The alliance will be a vehicle for planning and funding a research agenda that leads to commercial applications and new businesses here in Missouri," Carnahan noted.

He also calls for broadening the mission of the Missouri Highway and Transportation Department to include modernization of all types of transportation; focus new business recruitment efforts toward businesses that will use Missouri products; use of monitoring procedures to insure that tax breaks are used wisely and lead to promised jobs; creating an Extension Service center on tourism research and development; expanding the Office or Rural Economic Development; and creating a public-private Missouri Job Retention/Business Modernization Strike Force to help troubled businesses.

Another provision would create a revolving "New Jobs Fund" that will make direct investments in new businesses that show promise of significant growth and job creation.