Committee advances bill to give local governments 5% of approved state business incentives for infrastructure

A Senate committee advanced a bill that would direct 5% of the value of state economic incentives granted to businesses to the impacted city or county to pay for infrastructure needs.

Senator Bergstrom, sponsor of Senate Bill 1900, said the idea grew from a mayor’s request for help offsetting infrastructure costs when businesses receive state incentives. "The way it's written is 5% of the value of the state incentives to cities and or counties for use on infrastructure exclusively," Bergstrom said.

Committee members asked whether the proposal would apply to federal incentives (it would not), how the funds would be split when a project located outside a city nevertheless affects city roads and services, and whether the payment should be limited where there is no local impact. Bergstrom said he is willing to work with members on language to specify splits and controls and repeatedly urged colleagues to help craft clarifying language.

A senator asked for a fiscal example; Bergstrom answered that if an incentive package were $100 million, the local share at 5% would be $5 million. He said the 5% would come from the total incentive amount and would not create a separate statewide appropriation beyond the incentive value.

The committee voted 11–0 to advance the bill and the chair declared Senate Bill 1900 passed by the committee.