Officials discuss Momentum plan

BYLINE: Reuben Mees rmees@hattiesburgamerican.com

American Staff Writer

Building and retaining a quality work force is the top concern among industries in the state, Mississippi Power Chief Executive Officer Anthony Topazi said Monday in an interview with the Hattiesburg American editorial board.

"It's probably the most critical issue in the state, because if you don't have workers, you won't have economic growth," he said.

He and Mississippi Economic Council President Blake Wilson, who were discussing the progress of the Momentum Mississippi economic development plan and its future in 2007, then talked about educational opportunities that target early childhood learning, capturing potential dropouts and retaining quality teachers.

"We are asking (the legislature) to put extra money into technology training, but we also need to make sure that money is hitting the market where it needs to," Topazi said. "Because at the end of the day, if we aren't measuring ourselves, we don't have a plan."

Wilson explained that the recent MEC Trailblazers Tour which featured State Superintendent of Education Hank Bounds, community colleges Executive Director Wayne Stonecypher and Higher Education Commissioner Tom Meredith demonstrates the link between education and economic development.

"All these groups have to come together collaboratively to make this successful," he said.

They did not have a pricetag for their requests, but said many of the aspects are already included in proposals being submitted by the educational entities.

But this year's Momentum request also includes offering tax incentive packages for businesses that want to open tourist attractions, improving the state's image in an advertising campaign and offering financial incentives for start-up companies and university researchers.

n While tourism has never been included in the Momentum Mississippi package, Topazi said it looks to be the next big industry in the state.

"I think it should be our next big growth engine for the state," he said.

The plan calls for creating sales tax exemptions for non-gaming tourism business such as amusement parks, science centers or museums that would help make them more profitable during their startup periods.

"It's time to create the incentives to attract these tourism-related industries," Topazi said.

n The advertising campaign could cost between $20 million and $30 million but would help improve the image of the state for investors or trained workers, Topazi said.

"People really don't know Mississippi, and that's the problem we face," he said, explaining that usually new investors have a low opinion of Mississippi as a state.

Other states spend considerably more than the proposed $30 million each year to tout their state's image in advertising campaigns, he said.

n Also on the drawing board is a $4 million request for incentives for researchers to obtain patents and a plan to get private investors to create a private $10 million angel capital fund that could be used to help small businesses take their ideas to market.

The package will be the topic of a meeting today of the Momentum Mississippi Board of Directors, Wilson said.

Top priorities

Education

n Attack educational deficiencies at their root through early childhood education measures

n Attempt to reduce drop-out rates, which currently are at 35 percent in Mississippi

n Offer incentives to retain quality teachers

Advertising

n Undertake a $20 million to $30 million advertising campaign to improve the state's image

Technology incentives

n Create a $4 million public fund as an incentive for researchers to develop patents

n Create a privately-funded angel capital group with at least $10 million that would help entrepreneurs take ideas to market

Tourism

n Begin offering tax incentives for non-gaming tourism industries to invest in the state

Power bills

Mississippi Power customers won't be asked to shoulder the brunt of $302 million in losses the company faced after Hurricane Katrina, Chief Executive Officer Anthony Topazi told the Hattiesburg American editorial board Monday.

Instead, the federal government gave the company $276 million to offset the damages caused by the storm.

"That's 90 percent of the cost that would have been borne by the same people who are paying a 300 percent increase on their insurance premiums," he said.

Mississippi Power suffered about $400 million in losses because of the storm and $100 million was reimbursed by insurance.

The utility provider had begun planning for a 30 percent rate increase for all customers to help make up the losses, but they were able to reduce that to less than a 2 percent increase, Topazi said.

"What's most important for us is for our customers to be able to pay their bills," he said.

The CEO said the company will be able to remain competitive in its pricing, which will help it attract more business to South Mississippi.

Hattiesburg American staff writer Reuben Mees