Sandy Murman

Commissioner Murman lauded in this Tribune editorial on her small business job-creation program:

Editorial: Public money for private sector jobs

Editorial

By TBO.COM
Published: June 20, 2011

It’s a dicey proposition anytime government tries to get involved in creating private sector jobs.

It’s one thing to hire private companies to build roads, buildings and other necessary public projects; it’s another to use tax dollars to actually subsidize private jobs.

Under such scenarios, businesses that receive government aid may benefit, but competitors can suffer, even end up eliminating jobs and making the net effect on the economy negligible.

That is why government usually should avoid tinkering with the marketplace.

But with the county suffering an unemployment rate near 12 percent, it’s understandable that commissioners don’t want to simply sit on their hands.

And the county’s Small Business Job Creation Program provides a cautious but meaningful way to encourage local firms to hire more workers.

It won’t solve the jobless crisis, and county officials should monitor its long-term impact, particularly whether the jobs it creates last and whether it gives some firms an unfair advantage over others.

But the signs are encouraging that it is indeed giving private businesses an incentive to hire more workers.

Hillsborough Commissioner Sandy Murman, who championed the plan, says it has resulted in plans for at least 63 jobs. “That is like bringing a corporation to town,” she says.

The commission approved the program in March, providing $500,000 that will be used to reimburse small businesses for a portion of the salaries they pay new workers over three months. Businesses are limited to subsidies for three workers, and there is a maximum payout of $3,900 per employee. Only firms with 10 employees or fewer are eligible.

Participating companies must be pre-approved. They must be Hillsborough-based and have been in business two years. Workers must be Hillsborough residents. The firms do not have to agree to keep the workers beyond the three months, and they need only pay minimum wage. But they are not reimbursed by the county until the end of the three months, which ensures the jobs actually are filled and that no abuse occurs.

Murman reports an enthusiastic response. Close to 30 businesses have applied, and just a little more than half the funds remain. City Council member Lisa Montelione understandably would like the city to launch a similar effort.

With the city’s budget shortfall, it may be best to see exactly how the county’s experience plays out.

This little program is not going to suddenly ignite the economy, but it does give businesses that are gaining traction reason to invest in growth. Murman, her fellow commissioners and retiring Economic Development Director Gene Gray deserve credit for fashioning a simple, accountable way to give business a hand, without getting government’s fingerprints all over the place.