Economic Development: What’s The ROI?
As a follow up to my last article, “What Is Economic Development And Why Is It Important,” I would like to explain the return on investment (ROI) of economic development in Horry County.
Cited from Dr. Henry Lowenstein’s editorial, “Putting Horry County’s Economic Future First”, in The Sun News; Dr. Lowenstein says, “Economic Development is revenue producing, not a revenue consumer.”
The Myrtle Beach Regional Economic Development Corporation secured 1,504 committed jobs from new and existing businesses. Those jobs will produce an estimated $4.2 million per state and local tax revenue – each year. Over a five-year period, that’s approximately $21 million.
"We do these calculations in recognition that the revenue does not come in one lump sum, at one time, in one place or one tax category. Rather, it is realized gradually and distributes across various taxes supporting our schools, roads, local services and state-supported-services. Expanding the number who pay taxes reduces the need to raise taxes,” said Dr. Lowenstein.
According to Dr. Lowenstein, the MBREDC’s $1.3 annual budget from results in a rate of return to taxpayers of approximately 223 percent. That is $3.23 for every dollar invested.
This is the power of economic development recognized by our competitors. Horry County is in intense competition in South Carolina and worldwide to attract [and retain] businesses. Its successes are gaining attention. To date it has attracted new jobs, and business headquarters from other states, Canada, Germany, plus expanding existing industry. The MBREDC ‘s work is an investment to put our future first: jobs, higher incomes, quality of life and opportunities for community and our families’ are Horry County’s future to grasp.
Henry Lowenstein, Ph.D is a Special Projects Researcher and advisory board member for the Myrtle Beach Regional Economic Development Corporation.