More Companies To Return Money To State Quick Action Fund

Aug 26, 2013

Hewlett-Packard Facility in Conway
Credit Michael Pirnique / Arkansas Business
There's more scrutiny now of Arkansas's economic incentives programs. Hewlett-Packard, which received $10 million from the Governor's Quick Action Closing Fund in 2008, announced earlier this year that it would be laying off employees at its Conway center. Those layoffs and others have led some to question the state incentives companies like HP must pay back when layoffs occur. Arkansas Business reports that state economic development officials say companies should expect to pay back at least some of the money they receive if they fail to meet certain employment numbers. In addition to HP, Allied Wireless, Nice-Pak of Jonesboro and Pinnacle Foods in Fayetteville have had to repay $215,000 back to the state, after receiving $8 million from the Quick Action Fund. All three companies failed to meet employment goals. The Arkansas Economic Development Commission says it is also negotiating clawbacks with Nordex USA after it announced layoffs at its Jonesboro Plant. KUAR's Chris Hickey talks with Mark Friedman of Arkansas Business about the Quick Action Closing Fund and how it works in the state.