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N.M. needs new ideas for job growth

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By Fred Nathan

Prompted by a large decline in federal spending, New Mexicans are now engaged in a healthy and useful dialogue about how best to diversify our economy.
Think New Mexico would like to offer two ideas that we believe could propel private sector job growth in our state — and that gubernatorial and legislative candidates from both parties should be able to embrace.
Both ideas were advanced in Think New Mexico’s 2013 policy report, Addressing the Jobs Crisis. The first would establish a post-performance incentive that would reward companies only after they create high-paying jobs or make major capital investments. It is designed to encourage existing business to expand in New Mexico and new businesses to relocate to the state.
Six years ago, Utah, which now ranks second in the nation for job growth, became the first state to move to an economic development strategy based on post-performance incentives.
Utah’s post-performance incentive has led to the creation of 25,546 high-paying jobs from blue chip companies like Boeing, eBay and Proctor and Gamble. That is in addition to $5.16 billion in new capital investment and $1.62 billion in new state revenues since the incentive was established in 2008. (Several weeks ago Idaho became the second state to enact this sort of post- performance incentive).


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