If Boeing brings production of its 777X airliner to north St. Louis County, the incentives Governor Jay Nixon has proposed could add up to as much as $1.74-billion over 23 years, if the company reaches certain job creation thresholds.
A cost-benefit analysis released by the Governor’s office shows the project would also generate up to $2.9-billion in tax revenue in the same period.
It estimates that if between 2018 and 2040 Boeing has directly created 2,000 jobs it would cost the state more than $435-million in incentives while yielding $264-million in net fiscal benefit. 4,000 jobs created would cost more than $870-million in incentives and yield $550-million in net benefit. 6,000 jobs would cost $1.3-billion in incentives with more than $831-million net benefit and 8,000 new Boeing jobs would cost $1.74-billion in incentives and generate nearly $1.1-billion in net financial benefit.
Nixon’s office believes even a single component of the Boeing 777X project would create more than 2,000 jobs. The estimates assume that by 2018 those jobs would offer an average annual wage of $95,000.
His proposal is to extend the caps on four programs by a combined $150-million per year. Both Nixon and legislative leaders say those programs’ incentives are tied to job creation, meaning nothing will be paid out if no jobs are created.
Senate and House committees will hold hearings on the proposal later today. Lawmakers in both chambers had said a cost-benefit analysis is something they were waiting on as they considered Nixon’s proposal.