JOBZ — mistake or just misused?

The state’s JOBZ program is anything but a black-and-white issue. While some are calling for its repeal, others can’t seem to agree on how to fix it.

Launched in 2004, the program is the brainchild of Gov. Tim Pawlenty. It was intended to create jobs in rural Minnesota, and about 300 businesses have signed on to receive more than $45 million in tax breaks statewide.

The nonpartisan Office of the Legislative Auditor released its report on the program in February, and explained it to the House Taxes Committee on March 31.

In a nutshell, findings are that the program is misused, and in some cases doesn’t work at all, but if corrected, it could spur job creation in the state.

After public officials and the business community weighed in, the end conclusion wasn’t so clear.

“JOBZ was supposed to create jobs, and it’s really not doing that,” said Committee Chairwoman Rep. Ann Lenczewski (DFL-Bloomington).

She advocates eliminating the program altogether and sponsors a bill, HF4103, that would substitute JOBZ for grants allocated to businesses that are currently receiving the tax credits, but they would need to prove eligibility. The bill was discussed at the March 19 meeting and public testimony is expected at a later meeting. There is no Senate companion.

“A business expansion that creates five jobs in a little town like Lancaster, Minn. … is a benefit to the community and may not have a large cost to the program,” said Dan McElroy, commissioner of the Department of Employment and Economic Development. He argued to keep the program, but didn’t agree with all of the auditor’s recommendations, like placing a cap on the number of subsidies.

Tom Hesse, vice-president of government affairs for the Minnesota Chamber of Commerce, said the chamber hasn’t taken up a position either way.

“What we hear when traveling around the state … many local chambers of commerce think it’s an important tool to use,” he said. “As you might expect, we have some members on the other side of the issue as well.”