Economic Development and Trade

CSG Midwest
As of early March, Wisconsin was set to become one of the first states in the nation to expand incentives for private investments in federally designated Opportunity Zones. Under AB 532, which passed with bipartisan support in the Assembly and Senate, Wisconsin would double the tax credits for investors supporting projects in financially strapped, low-income communities across the state. (The bill had not yet been signed by the governor as of early March.)
CSG Midwest
In Iowa, Gov. Kim Reynolds has made improving economic opportunities to all areas of the state a top priority. To do this, she has placed a particular focus on rural Iowa and the challenges faced by those communities.
Since 2018, state and community leaders have taken part in the governor’s Empower Rural Iowa Initiative in order to address the challenges facing the state’s rural communities. The initiative’s work resulted in legislation and a set of recommendations for continued action.
Sixty percent of Iowans live in counties with populations less than 100,000 and 30 percent live in counties with less than 25,000, making rural Iowa critical to the entire state, says Iowa Sen. Mark Lofgren.
CSG Midwest
Recognizing the increasingly important role that state and local officials play in international relations, some U.S. lawmakers say it’s time to boost federal support for these activities. Their idea: Create a new Office of Subnational Diplomacy within the U.S. State Department.
CSG Midwest
With her signing of an executive order in August, Kansas Gov. Laura Kelly pronounced the end of a longstanding “economic border war” between her state and Missouri. Her action, combined with legislation passed in Missouri this year (SB 182), stops the two states from offering tax incentives to companies in the Kansas City region. For the war to truly end, The Wichita Eagle reports, local governments on both sides of the border need to follow the states’ lead. Because they are not bound by the Kansas executive order or new Missouri law, cities and counties could still offer property tax abatements to lure businesses.
CSG South

The emergence of shared electric scooters is the latest development in the broader micromobility movement, defined by the use of light, often single-occupant modes of transportation for short distances. Along with electric scooters, station-based and dockless pedal and electric bicycles are the most commonly used micromobility vehicles, accounting for more than 80 million trips in 2018.

In the South, the introduction of shared electric scooters has been swift. With growing populations and favorable climates across much of...

CSG Midwest
After years of court cases, requests for proposals and bidding, work is underway for a new bridge at the busiest commercial crossing along the U.S.-Canada border. Approximately 7,000 trucks — carrying goods worth millions of dollars — already pass the border most days at Detroit and Windsor, Ont. All of these crossings are done now via the privately owned, 90-year-old Ambassador Bridge.
But with the scheduled opening of the Gordie Howe International Bridge in late 2024, a second option will be available for U.S. and Canadian firms.
The bridge (named after the Hall of Fame Canadian hockey player who starred for the Detroit Red Wings) will provide larger, modern ports of entry and customs facilities, while incorporating new technologies to speed up border screenings. And with two bridges up and running, the movement of commercial goods will not be as affected by accidents or other incidents at the Detroit-Windsor crossing.
CSG Midwest
From the pork products that come from Kansas to the soaps made in Ohio, the specter of retaliatory tariffs looms large among the Midwest’s economic sectors that rely on trade with Canada and Mexico. Many of the affected industry groups continued in early 2019 to try to get their voices heard among U.S. trade leaders.
One of their latest outreach efforts: A letter signed by a diverse group of more than 40 organizations — including the National Corn Growers Association, the U.S. Chamber of Commerce, the National Pork Producers Council and the Association of Equipment Manufacturers — urging a return to “zero-tariff North American trade.”
CSG Midwest
In Kansas City’s metropolitan area, there is a long history of businesses crossing the Kansas-Missouri border — lured by one of the two states’ tax breaks and financial incentives. “It’s a zero-sum game when incentives are given to move a company just a few miles from where it was,” says Rep. Kristey Williams, a member of the Kansas House Commerce, Labor and Economic Development Committee. “Essentially, taxpayers lose.”
Could this traditional type of interstate competition be replaced by an interstate collaboration, or cease-fire?
Smaller- and large-scale ideas were being proposed in the nation’s state legislatures in early 2019, including a bill known as the “border war bill” in Missouri. Passed by the state Senate in late February, SB 182 would prohibit state incentives from being offered to companies located in four Kansas border counties. Kansas would have to adopt a comparable ban for SB 182 to take effect.
According to Missouri Sen. Mike Cierpot, the bill’s sponsor, the two states have “spent over $335 million shuffling businesses back and forth over state lines … by moving a matter of miles, or in some cases blocks.”

A focus on serving the logistics sector is in part responsible for the business expansions and additions that have brought record job growth to Kentucky in recent years, a state transportation official told attendees at the CSG National Conference in December.

CSG Midwest
Following more than a year of negotiations, and many days when it seemed as though talks would fail, Canada, Mexico and the United States reached agreement on a trilateral trade pact on Sept. 30. The deal has a new name — the United States-Mexico-Canada Agreement, or USMCA — and some new provisions, but also is notable for what it keeps in place.
“About 70 percent is the same [as the North American Free Trade Agreement],” notes Chad Hart, an associate professor of economics at Iowa State University. “What this means is that the rules we have been playing under for the last 20-plus years have been reaffirmed, and this adds market certainty.”

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