REGULATIONS CAN HELP, HURT CITIES' GROWTH

Despite their best efforts to attract industry, every city knows about a state regulation that hurts recruitment.

Other state regs help. In Missouri, enterprise zones and tax increment financing assist businesses in getting their feet on the ground.

But Missouri has some strict environmental regulations, too, said Cape Girardeau Mayor Al Spradling. Although these laws do a good job of protecting natural resources, they sometimes make it tough on Cape Girardeau businesses to comply and also make a profit.

John Mehner, executive director of the Cape Area Chamber of Commerce, said Missouri's biggest problem in recruiting large industries is that it isn't a right-to-work state. If it were, non-union employees could work side-by-side with their union co-workers.

Instead, it only takes 51 percent of the employees to vote in a union, something industry management fears.

"It is a fact that prospects immediately ask if we are a right-to-work state," Mehner said. "I'm not saying that's right or wrong, but it's the top question asked."

In Kentucky, the big issues are health care, workers' compensation and tax reform, according to Melody Doom-Shrader, executive director of the Paducah Chamber of Commerce.

While some progress was made in the last state legislative session, there's still work to be done, she said. In the meantime, local officials do the best they can to help industries stay in McCracken County.

"We're talking to all of our existing industry, asking, `What are your problems? What's keeping you from expanding in Kentucky? What's making you think about leaving?'" Doom-Shrader said.

Workers' compensation is also a big issue in Southern Illinois, Carbondale City Manager Jeff Doherty said.

The state has been very supportive in some areas. When tesa tape inc., a large tape manufacturer, wanted to open in Carbondale, Illinois' governor became personally involved. Still, Doherty believes workers' comp rates stand in the way of recruiting.

"The rates are higher in Illinois than elsewhere," he said. "While there has been some effort in Springfield, there hasn't been any real reform yet.

"What we feel in Southern Illinois is, we are competing with Missouri, Arkansas and Kentucky, who all have significantly lower workers' comp rates."

Mayor Hubert Brodell said he couldn't think of any Arkansas regulations that stand in the way of Jonesboro's progress.

Arkansas law says cities may not borrow any money or pay interest, but often concerned community leaders get around the law by forming private committees to do that.