Last Updated:February 15. 2007 11:00PM
Published: February 16. 2007 3:30AM

Support among the area's legislative delegation for creating an incentive fund for recruiting jobs in the Shoals appears solid, but they still want some answers before they take the issue to the state Legislature.



Commissioners in Colbert and Lauderdale counties have been asked to seek legislation that would allow them to increase sales tax by up to ½ percent, with all proceeds going to creating jobs.



The popular response from commissioners and the state legislators, who would have to submit legislation to make it happen, is that they want more information about how the fund would work. They want to know how decisions will be made and who would control the account.



At present, however, a meeting has not been scheduled where elected officials and Shoals Economic Development Authority members can hammer out those details.



"There needs to be some meetings on this because there are just too many questions," said state Sen. Bobby Denton, D-Muscle Shoals, the dean of the state Senate. "There should be more consulting with everyone involved. We all need to have a clear understanding of what this will do and how it will be done, and who is going to make sure there is accountability."



State Rep. Marcel Black, D-Tuscumbia, said he and other legislators attended a meeting earlier "when this concept was rolled out, but there's a lot of difference between concept and reality. We haven't seen a final version of what's being kicked around."



State Rep. Tammy Irons, D-Florence, said she favors the concept of creating an incentive fund and agrees it is needed, but "I don't know what the resolution (from the Lauderdale County Commission) might say."



"There are a lot of changes and ideas being discussed that were not part of the meeting we had awhile back," Irons said. "We've all got to be in total agreement before anything can be passed."



SEDA officials made the request to the county commissions last week, at the urging of elected officials. Elected officials from the six largest government entities in the Shoals say they can no longer afford to tap into their general funds and reserves or borrow money to provide incentives for industries.



Incentives will play a big role in which site lands a major project that is looking at the Shoals. The company, which needs hundreds of welders, plans to employ about 1,500 workers.



Forrest Wright, executive director of SEDA, quickly agrees



with those who say a meeting needs to be held to discuss the incentive fund and the mechanism that will be used to provide the money.



"If they want to do something different now than they did a month ago when we met, that's fine," Wright said. "There needs to be a meeting to discuss those things.



"The direction this thing heads is up to our elected officials who must adopt it and get it through the Legislature. The local governments who fund the majority of the economic development activities in our area cannot continue to go the way they've been going (to provide incentives). We've suggested a way they can get some help."



For commissioners to have the authority to increase the sales tax for recruiting incentives, state legislation must be passed to give them that authority. The regular session starts in less than three weeks, so decisions would presumably have to be made soon.



Lauderdale commissioners meet again Feb. 26, while Colbert commissioners meet the next day. It's unlikely that either group will vote on the proposal at those meetings, and that would delay action until March.



Lauderdale County Commission Chairman Dewey Mitchell said the issue could come up during the Feb. 26 meeting, but he wants to contact the commissioners before determining if the-matter should be placed on the meeting agenda.



"There are questions everyone wants answered before it comes up for a vote," Mitchell said.



Mitchell, who said he only votes in the event of a tie, likes the concept of a tax that goes toward industrial incentives.



"I have absolutely no problem with an economic development fund and some funding mechanism, if we can get everybody who's involved in this thing to agree on the details," he said.



State Rep. Mike Curtis, D-Greenhill, said area legislators could sit down with local leaders once the county commission approves a measure requesting that a bill be presented.



"I know the cities and counties have talked about some type of incentive for a long time," Curtis said. "It's going to be up to the counties to decide what they're looking for. Then we'll have to evaluate from there."



Curtis foresees commissioners wanting an oversight committee.



"That'll be one of the keys," he said. "I'm sure the county will make sure it goes strictly for industrial development, not for any salary, benefits or operational expenses."



Lauderdale County Commissioner Larry Irons said questions include who would handle the funds and what purchases would be exempt.



"Personally, I think automobile sales, farm equipment, manufacturing equipment and vending should be left out," Irons said.



He agrees funds should only go toward existing industries-and recruitment of new-industries, "and never for any-retail expansion."



Irons said the potential a major industry would bring to the Shoals is immeasurable.



"We could see a large turning point if that happened," he said. "I do know this much, local governments can't keep funding this without some sort of incentive."



Lauderdale County Commissioner William Smith also said many questions need to be answered before a decision is reached. Those include who would control the money and to whom that group would be accountable. Smith also wants to know where the funds would go.



"We're still out there trying to get answers," he said.



Smith is wary of forced sales tax increases.



"Sales tax is the most regressive tax you can have," he said. "It disproportionately affects those who can least afford to pay. If you have a sales tax, it needs to exempt basic necessities like food and (prescriptions)."



Smith also said voters should decide any sales-tax issue.



"I agree you obviously need an economic development organization, and in the world we live today, you need some type of fund, but I am not convinced it's a sales tax," he said. "There are other options that should be tried first.



"I still have an open mind about this," Smith said, adding many people have told him they oppose the idea.



Denton also said a sales tax is more difficult on those who cannot afford to pay it, "those people who make $6 or $7 an hour and are trying to raise a family."



He said it would be nice if the bill would exempt groceries and medication. He added that other options such as adding fees to utility meters might not have such a drastic effect on those who do not earn high wages.



"If we get the project, I don't think people would mind a quarter-cent tax," Denton said. "But if the company doesn't come, it could be best that we approach projects on individual basis as we have been. It seems to be working.



"It's unfortunate, but there is a need for an incentive program. If we're not willing to do it, there are other places out there that are willing. But what I don't want to see happen is that we build up a slush fund."



Irons echoes those thoughts.



"Tax abatements by themselves don't work anymore," she said. "They want cash now. We have to do something because during campaigning, that's what everyone was talking about. They want more jobs and higher paying jobs.



"We just need to sit down and look at the details. Then we'll do our homework and see which way we should go."



Bernie Delinski can be reached at 740-5739 or bernie.delinski@timesdaily.com.