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Incentives for Cessna expansion approved

April 16, 2008

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Government officials in the Wichita area have approved a slate of financial incentives for a new Cessna Aircraft Co. assembly plant in Wichita.

Leaders from Wichita and Sedgwick County approved the package this week. It includes $10 million in forgivable loans, the consolidation of numerous leases into a 50-year agreement and various tax breaks.

The state of Kansas has already approved $35 million in loans and bonds to attract the project. The plant would be used to build Cessna's new Citation Columbus business jet.

The expansion is expected to create more than 1,000 jobs and include $200 million in new plant and equipment.

Comments

just_another_bozo_on_this_bus 6 years, 5 months ago

That figures out about $45,000 in corporate welfare per job. What business couldn't create a job for $45,000? Should every business in the state apply for one of these loans/grants/giveaways?

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any 6 years, 5 months ago

Bozo-Well, last I checked equipment cost money, and even if all money went to the jobs your calculation assumes all the money is spent in 1 year. Chances are that isn't the case since the article mentions a 50-year agreement. So for the 1000 jobs over 50 years it boils down to $900 per person per year. And again, that assumes all the equipment is free. So per job it doesn't seem like the company is asking for all that much.But again, let's assume it is all for wages for only 1 year. That means there is $45 million in wages that there is withholding tax on, and 1000 people that each have an additional $45,000 to spend money on (sales tax) and maybe buy houses (property tax)....oh and in a time when the job market seems to be going south, what is your issue with 1,000 new jobs?Thoughts dismissing government trying to bring jobs into the State (and Lawrence) is exactly why this town is economically stagnant....which in my opinion is very bad. Don't only look at the cost but look also the benefit.

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just_another_bozo_on_this_bus 6 years, 5 months ago

"Well, last I checked equipment cost money, and even if all money went to the jobs your calculation assumes all the money is spent in 1 year. "Well, yea, and almost any business could create one job with that money, equipment and all. And my assumption is that this money will be handed over fairly quickly, while whatever amount gets paid back at all will be paid back rather slowly. So my question is that when will other businesses, especially small businesses, get to line up for their $45,000?"Don't only look at the cost but look also the benefit."What if the economy continues to tank, and nobody wants any of these planes, a huge percentage of which are destined to be little more than conspicuous consumption.

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