Cook: Asa Hutchinson, ‘Slush Fund’ And Economic Development

A job expansion announcement today is a good time to recall that Asa Hutchinson once referred to a wildly successful economic development tool as a “slush fund.”

Today food distributor Ben E. Keith provided more details on their $60 million investment in their North Little Rock facility. Their expansion will add 74 new, good-paying jobs.

Governor Mike Beebe disclosed that $2.27 million from the Quick Action Closing Fund was provided for the expansion. The Ben E. Keith expansion is a classic example of government partnering with businesses to help create jobs.

Governor Beebe proposed the Quick Action Closing Fund when he first ran for Governor as an economic development tool.

The Democrat-Gazette said Asa Hutchinson called the Quick Action Closing Fund a “slush fund” when he ran against Mike Beebe. Hutchinson also derided it as a “kitty” for the governor.

Hutchinson doesn’t seem to understand how effective economic development works.

The fund has helped close a number of major deals with such corporations as Hewlett Packard, Nordex, and Welspun Pipes. It’s been a successful tool to create jobs and has secured more than 30 companies.

Here’s what Chamber of Commerce leaders say about this fund:

“Thousands of jobs and dozens of projects in every corner of our state can be traced directly back to this incentive.”

Hutchinson has a bad habit of opposing Chamber of Commerce ideas and plans. Hutchinson recently likened a Chamber tax cut proposal as something President Obama would propose, and it wasn’t meant as a compliment.

But in a recent Talk Business post, Hutchinson seemed to express support for the Quick Action Closing Fund if certain pre-conditions are met.

I guess Hutchinson was against effective economic development tools before he was for them.