Human resources by swapnilvnarvekar

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									HUMAN RESOURCES
Nebraskans recognize the close relationship between the quality of their work and the quality of
their lives.

PEOPLE                                                                                                                                                         Non Agricultural Workforce
Nebraska is the heartland. Here, in the center of                                                                                                             2001 Annual Average: 909,000

the United States, you’ll find a rich population of
farm families, small-town dwellers, urbanites,                                                                 35%
white-collar professionals and blue-collar                                                                     30%
                                                                                                                                                                                   29%

laborers.                                                                                                      25%                                      23%

                                                                                                               20%                                                                                              17%
Nebraskans have a national reputation for a                                                                                     13%
                                                                                                               15%
strong work ethic, with high productivity and
                                                                                                               10%                                                                                 7%
low rates of absenteeism.                                                                                                                                                                                                   6%           5%
                                                                                                                5%

                                                                                                                0%
POPULATION AND LABOR FORCE
According to U.S. Bureau of Census counts,
Nebraska’s population was 1,711,263 in 2000,
up 8.4 percent from 1990. Job growth helped
attract new residents. The state’s non-farm
payroll grew 23 percent from 1990 to 2000,
compared to 21.7 percent nationally.                                                                                      Nebraska Department of Labor, 2001




Nebraskans live and work in environments
ranging from rural to small city to metropolitan                                                              PRODUCTIVITY
areas. In 2000, the Lincoln metropolitan area                                                                 Nebraska’s labor force has a tradition of high
had an estimated 250,291 persons, while the                                                                   productivity. When coupled with a positive
Omaha metro area had a total population of                                                                    attitude you have reasons why Nebraskans take
716,998.                                                                                                      such pride in their work. An example of this
                                Manufacturing Work Force                                                      attitude is the inclusion of a “Right-to-Work”
                                                                                                              provision in the state constitution. Average
 35%                                                                0.33
                                                                                                              workers’ compensation rates are among the
                                                                                                              nation’s lowest.
 30%

                                                                                                                                 Average Hourly Earnings of Manufacturing Production Workers
 25%


 20%                                                                                                                                                                                                            14.98   14.94
                                                                                                               $15.00
                                                                                                                                                                                                        14.66                    14.60
 15%
                                                                                                                                                14.38                                      14.39
                             0.11                                                                              $14.50                                            14.25
                                        0.09                 0.09
 10%                0.08                                                                 0.08
                                                                                  0.06                         $14.00
                                               0.05
  5%                                                  0.03                                      0.03
           0.02                                                            0.02                                $13.50
                                                                                                       0.01
                                                                                                                                                                                   13.01
  0%                                                                                                                            12.93
                                                                                                               $13.00

                                                                                                                                                                                                                                         12.37
                                                                                                               $12.50


                                                                                                               $12.00
                                                                                                                               Nebr.             U.S.           Calif.             Ga.      Ill.        Iowa    Kans.   Minn.    Pa.     Tex.
                                                                                                                                                 Avg.

                                                                                                                     U.S. Department of Labor, Beureau of Labor Statistics, 2001

   Nebraska Department of Labor, 2001
EDUCATION
Nebraska’s high school graduation rates average more than 85 percent – among the highest in
the nation. More than 70 percent of these graduates annually take the ACT or SAT college
aptitude tests – again, one of the highest percentages in the country – and consistently score well
above national averages in every subject.

                   High School Graduate Or More Percent of Population 25 Years
                                                                                                       COLLEGES AND UNIVERSITIES
                                         Old And Over                                                  In addition to technical and community colleges,
                                                                                                       Nebraska has 23 public and private college and
 95.0%                                                                                                 university campuses offering bachelors and advanced
              0.904                                            0.897
                                                                               0.908
                                                                                                       degrees. Five provide postgraduate programs in science
 90.0%                                                                 0.881
                                                       0.855                           0.857           and technical disciplines. Two major medical schools
                           0.841
 85.0%
                                      0.812
                                               0.826                                                   are located in Nebraska, as well as two pharmacy
 80.0%
                                                                                               0.792   schools, two schools of dentistry and other related health
                                                                                                       professional schools.
 75.0%

 70.0%                                                                                                 The University of Nebraska’s strong support for business
             Nebr.         U.S.       Calif.   Ga.      Ill.   Iowa Kans. Minn.        Pa.     Tex.    development is exemplified by the expansion of
                           Avg.
                                                                                                       cooperative agreements with industry, a growing
    U.S. Bureau of the Census, 2001
                                                                                                       technology park in Lincoln, and the Institute for
                                                                                                       Information Science, Technology and Engineering in
TRAINING
                                                                                                       Omaha.
Because of the mechanical adeptness and
trainability of Nebraskans, many companies find
traditional training periods can be considerably                                                       TRAINING PROGRAMS
shorter. Some manufacturer’s products can be                                                           A comprehensive, on-the-job training program is offered
made in Nebraska using fewer man-hours than in                                                         and administered by the Department of Economic
other locations. These reductions in time and                                                          Development for new and expanding Nebraska
costs will result in higher productivity and                                                           businesses. Nebraska state agencies work together
profitability for your company.                                                                        through a Job Training Liaison, providing a full range of
                                                                                                       training and recruitment resources for business and
                                                                                                       industry. The Liaison weaves available programs into
In addition, Nebraska’s labor development
                                                                                                       customized packages meeting specific needs, saving time
program teams up the financial and technical
                                                                                                       and money during start-up, while increasing productivity
resources of the Department of Economic
                                                                                                       and reducing turnover rates.
Development, Department of Labor and 14
technical community college campuses across
the state to provide custom-designed recruitment                                                       Services provided on a company’s behalf may include
and training assistance. Businesses may get                                                            labor force recruitment, screening and assessment
assistance for pre-employment and/or on-the-job                                                        programs, and customized training for new and existing
training, or other specific tax credits.                                                               employees.

COMMUNITY COLLEGES                                                                                     NEBRASKA INDUSTRIAL COMPETITIVENESS
Nebraska’s statewide community college system                                                          ALLIANCE (NICA)
is an important key to providing a superior,                                                           NICA, a cooperative effort involving service
skilled and prepared labor force. Fourteen                                                             organizations of government, business and education, is
campuses offer comprehensive occupational                                                              another important resource for employers. Services
curricula and conduct special training programs                                                        include a Manufacturing Extension Program (MEP),
to meet the needs of industry. These colleges                                                          which provides technical assistance to manufacturers
also work closely with the Department of                                                               across the state.
Economic Development to assist with
customized training programs.
TAXES
Nebraska offers an array of money-saving tax advantages and business assistance programs to
attract and retain business and industry. Nebraska’s constitution prohibits deficit financing.
                                                                                     State and Local Tax Collections Per Capita

      No state-levied property tax.

   
                                                        $3,600                                                                                 3,489
       No tax on intangibles.                           $3,400


                                                        $3,200

      “Sales-only” corporate income tax                $3,000                        2,864
                                                                                                   3,020
                                                                                                                     2,952


       apportionment factor. (Corporations              $2,800
                                                                         2,755
                                                                                                                                       2,795           2,802



       pay 5.58% on the first $50,000 and               $2,600
                                                                                                             2,554
                                                                                                                               2,607



       7.81% over $50,000 based on federal              $2,400
                                                                                                                                                               2,350


       taxable income attributable to Nebraska          $2,200

       operations.)                                     $2,000

                                                                         Nebr.      U.S. Avg.      Calif.     Ga.       Ill.    Iowa   Kans.   Minn.    Pa.    Tex.


      No property tax on business inventories.
                                                       U.S. Bureau of the Census, 2001



      Personal property tax depreciation
       schedules permitting full 100%              SALES AND USE TAX
       depreciation.                               The present sales and use tax rate is 5.5%, plus an
                                                   additional 0.5% to 1.5% in 114 municipalities.
      Performance-based state and local sales
       tax credits and refunds for qualifying      UNEMPLOYMENT COMPENSATION
       firms.                                      The standard contribution rate for a new Nebraska
                                                   employer is 3.5% of the first $7,000 of wages paid each
      No sales tax on electricity, coal, gas,     person employed during the year. In 2001, the average
       and fuel oils when more than half used      rate on taxable payroll was 0.7% - one of the lowest in
       directly in processing or manufacturing.    the nation.
                                                                  Estimated Unemployment Compensation Cost Per Insured
      No sales or use tax on ingredients used                                        Employee

       in manufacturing or processing of a
       product destined for ultimate retail use.      $300
                                                                                                                                                        296




   
                                                      $250                                                                     223             220
       No sales tax on food, prescription drugs                                                 189
                                                                                                                     207


       and some services.                             $200                         173


                                                      $150                                                                             128
                                                                                                                                                                117

      One-time capital gains tax exemption           $100

       from personal income tax on employee-            $50
                                                                    49
                                                                                                            43


       owned corporate stock.
                                                         $0



   
                                                                   Nebr.         U.S. Avg.      Calif.      Ga.      Ill.      Iowa    Kans.   Minn.    Pa.     Tex.
       Sales tax refund on air and water            Nebraska Department of Labor, 2001

       pollution control equipment.

      No sales tax on common carriers’                            Workers' Compensation Manufacturing Rates (Per $100 of Payroll)

       vehicles and replacement parts.

                                                      $6.00

                                                                                                 5.02
                                                                                                                                                                4.7
                                                      $5.00


                                                      $4.00
                                                                                                            3.43
                                                                                    3.21                             3.17
                                                                    2.83                                                                               2.87
                                                                                                                               2.7     2.58     2.6
                                                      $3.00


                                                      $2.00


                                                      $1.00


                                                      $0.00

                                                                   Nebr.         U.S. Avg.      Calif.      Ga.       Ill.     Iowa    Kans.   Minn.    Pa.     Tex.

                                                     Actuarial and Technical Solutions, 2001
TRANSPORTATION
Nebraska’s convenient and secure location with its fully integrated transportation systems,
provides quick, easy access to anywhere in the country.

MARKETS                                             RAIL
Over 75 million people and several major            Nebraska enjoys excellent rail service from some of the
metropolitan areas are located within an easy       country’s largest railroads. Omaha, headquarters of
day’s drive of Nebraska. The state’s balanced       Union Pacific, is one of the largest rail centers in the
economic base and vast market potential have        U.S., and North Platte is home of the nation’s largest
provided a profitable home for many Fortune         freight classification yard. Passenger service to major
500 companies.                                      communities is provided by Amtrak.

AIR SERVICE                                         INLAND WATERWAY
More than 80 municipal and commercial airports      The Missouri River on Nebraska’s eastern border
are located in Nebraska. The state is served by     connects the state with ocean traffic from the Gulf of
most of the nation’s largest airlines, providing    Mexico and the Atlantic Ocean. Barge service is
direct access to the regional and international     available to all parts of the Federal Waterways System.
airports.

Omaha’s Eppley Airfield is served by 12 major
airlines, in addition to commuters and charters,
providing approximately 200 flights daily. In
2000, the Omaha airport had a million more
passenger enplanements and deplanements than
in 1990.

HIGHWAYS
Nebraska is only one day by truck from major
market centers serving 50 million persons. I-80,
the country’s only continuous coast-to-coast
interstate highway, runs the entire length of the
state. I-29 borders Nebraska on the east and
provides excellent north-south access, while I-25
is in close proximity to the state’s western
border.

Nebraska also has a Priority Commercial System
of highways providing a continuous network of
routes especially designed for large volumes of
commercial vehicles. Important components of
the system are multi-lane, divided expressways,
providing higher speed connections between
larger communities and the interstate highway
system.
UTILITIES
Nebraska’s public power and electric grid system assure reliable service and plentiful supply
with industrial rates among the lowest in the nation.

ELECTRICITY
Nebraska is the only 100% public power state in
the union. These public power systems control
an efficient and dependable mix of generating
systems supplying low cost power for current
and projected needs.

The majority of Nebraska’s electrical energy is
produced by coal-fired power plants. The cost of
coal is comparatively low because of the state’s
proximity to the largest coal reserves in the
nation. Nebraska’s two nuclear power plants
provide about a third of the state’s electrical
generating capacity.

                   Average Bill For Industrial Electric Service
                                 (cents/kw hour)
                                                                                                       NATURAL GAS
                                                                                                       The average cost of natural gas in Nebraska for
   $0.06                               0.056                                                           commercial and industrial uses is among the nation’s
                                                                                                       lowest. Industrial quantities of gas are available on a
   $0.05
                            0.045
                                                       0.042
                                                                       0.045
                                                                               0.046
                                                                                       0.043
                                                                                               0.045
                                                                                                       firm or interruptible basis in most Nebraska
                                                0.04
   $0.04        0.036
                                                               0.039
                                                                                                       communities.
   $0.03

                                                                                                                                                       Industrial Gas Rates
   $0.02




                                                                                                           $6.00
   $0.01


                                                                                                                                                                            5.44
                                                                                                           $5.50                                                    5.36
   $0.00

                Nebr       U.S. Avg.   Calif.   Ga.     Ill.   Iowa    Kans.   Minn.    Pa.    Tex.

 U.S. Department of Energy, 2001                                                                           $5.00
                                                                                                                                                           4.73                                    4.75
                                                                                                                        4.64

                                                                                                                                                                                           4.42
                                                                                                           $4.50                   4.35

WATER
Nebraska’s underground water supply provides a                                                             $4.00                                                                   3.81


huge resource for industrial, domestic and                                                                                                                                                                3.51


agricultural use. Below the state’s surface is
                                                                                                           $3.50
                                                                                                                                               3.24



almost 80 percent of the Ogallala Aquifer – 2.4                                                            $3.00


billion acre-feet, or more than six times the                                                                          Nebr.     U.S. Avg.      Ca.        Ga.       Ill.   Iowa   Kans.   Minn.   Pa.    Tex.


amount of water in Lake Erie. Along with over                                                          $/MM BTU from Gas Facts 2001 American Gas Association 2001
5,000 miles of flowing streams and numerous
natural and manmade lakes, Nebraska has
plentiful water resources that can be easily
tapped at a multitude of locations.
TELECOMMUNICATIONS
Nebraska has been the leader in the deregulation
of intrastate telecommunications rates and
services, shortening the time required for the
implementation of cost saving innovations.

Nebraska’s telecommunications companies have
installed digital switching systems and fiber
optic cable throughout the state, ensuring
Nebraska has a state-of-the art network meeting
the needs of Nebraska firms in the 21st century.

Omaha has long been a recognized leader in
telecommunications and tele-technology
industries serving a global market, with an
estimated 20 million calls coming into Omaha
daily. U. S. News and World Report recently
featured Omaha in a story, “They’d rather be in
Omaha: As the heartland goes high-tech, the
cornfields are rocking”.
INCENTIVES
Nebraska has a pro-business tax climate and uses targeted business tax incentives and
exemptions to foster economic growth.

PERFORMANCE-BASED TAX
INCENTIVES                                           II) Companies making wage commitments as well as
Tax credits are available to both large and small    adding significant new employment and investment in
businesses that invest in Nebraska. The credits      Nebraska can also qualify for wage benefit credits
are earned according to the size of the              provided by the Invest Nebraska Act (LB620). The
investment and number of jobs created. Small         credits may be used against withholding tax liability and
businesses can earn credits by investing a           can fund programs for employees as well as offset a
minimum of $75,000 and creating a minimum of         company’s income taxes.
two full-time positions during a tax year. Larger
businesses can earn credits based on several         Businesses qualify for these incentives in the state’s
investment and job creation categories, including    metropolitan areas by adding at least 500 employees and
a minimum investment of $3 million and the           $50 million in investment, or 250 employees and $100
creation of 30 jobs.                                 million in investment, and paying the new employees at
                                                     least 110% of Nebraska’s average wage.
The resulting tax allowances can include
corporate income tax credits, sales and use tax      Outside the metropolitan areas, the qualifying
refunds, and certain classes of personal property    requirements are $10 million in added investment and 25
tax exemptions.                                      new employees paid an average wage that is at least the
                                                     state’s average.
SUMMARIES
I) A non-retail primary employer investing $3        III) For smaller projects, the Employment Expansion
million in qualified property and creating 30 new    and Investment Growth Act (LB1124, LB270), provides
or additional jobs can earn the following            $1,500 tax credit per employee and $1,000 tax credit per
incentives provided by the Nebraska                  $75,000 of capital investment if two new jobs are created
Employment and Investment Growth Act                 and a capital investment of at least $75,000 is made.
(LB775):
                                                     These credits can be applied to a state sales tax refund or
    1.   A refund of sales and use taxes paid for    up to 50% of a business’ annual income tax liability over
         purchases of depreciable property used      a 5-year period.
         in connection with a qualified project.
                                                     IV) Other projects adding investment and employment
    2.   A 5% tax credit on compensation paid        and paying above-average wages in one of the state’s
         to the company’s new employees.             rural counties may qualify for incentives under the Rural
                                                     Economic Opportunities Act (REO). The investment
    3.   A 10% tax credit on the investment          and employment requirements vary from county to
         made in depreciable property related to     county, and are lowest for counties with the smallest
         the project.                                labor forces.

A business investing $20 million in qualified        The new employees should be paid an average wage at
property is entitled to sales and use tax refunds.   least 25% more than the county’s average wage or equal
                                                     to the multi-county regional wage. Qualifying projects
If a business invests $10 million in qualified       earn income tax credits equal to 5% of the total
property and hires at least 100 new employees, it    compensation paid to new employees in each of seven
is entitled to additional incentives of personal     consecutive years, plus 10% of the new investment made
property tax exemptions for a 15-year period for     for up to 10 years.
turbine-powered aircraft, mainframe computers
and peripherals, and agricultural products’
processing equipment acquired for use in
connection with the project.

Credits may be used to reduce Nebraska
corporate income tax, or obtain a refund of sales
taxes paid on purchases for use at the project.
Businesses are eligible to earn credits for a 7-
year period, and accumulated credits may be
used during a 15-year period.
FINANCING
Nebraska provides financing services through conventional commercial channels, federally
sponsored programs, and state supported programs. A portion of Nebraska's Community
Development Block Grant (CDBG) funds have been dedicated to economic development projects.
The Nebraska Investment Finance Authority (NIFA) provides low interest financing for eligible
industrial projects. Community and regional industrial development corporations organized
throughout the state have funds available to assist in financing small- to medium-sized projects, or
to partially defray the expenses attendant to larger industrial developments.
Programs and services available to businesses in          4.   LOCAL OPTION MUNICIPAL
Nebraska include:                                              ECONOMIC DEVELOPMENT ACT
                                                               (LB840)
1.   INDUSTRIAL REVENUE BONDS                                  This statute provides the ability for communities
     All Nebraska counties and municipalities, as              to add a sales or property tax for economic
     well as the Nebraska Investment Finance                   development projects.
     Authority (NIFA), are authorized to finance
     land, buildings and equipment for industrial         5.   Nebraska Redevelopment Act (LB830) is a
     projects. The rates of interest on the bonds are          source of funding improvements.
     normally lower than on most loans and can
     provide financing of up to $10 million.              6.   U.S. Small Business Administration (SBA) is a
                                                               source of low-interest financing.
     The Nebraska Development Finance Service
     (NDFS) also provides assistance in assembling        7.   Rural Economic and Community Development
     financing.                                                (RECD) provides low interest financing.

     The Nebraska Energy Office can provide low           8.   Economic Development Administration (EDA)
     interest loans for energy efficiency improvements.        provides funds for low interest financing.

2.   COMMUNITY DEVELOPMENT BLOCK                          9.   Small Business Innovation Research Program
     GRANTS (CDBG)                                             (SBIR) is a source of research and development
     The CDBG program applies to all Nebraska                  funds.
     communities and must support job-creating
     activities for low- and moderate-income              10. NEBRASKA ENTERPRISE ZONES
     residents. Funds are awarded to local                    Within Nebraska’s Enterprise Zones, special tax
     governments to finance programs that                     credits are given for qualifying businesses that
     accomplish these goals.                                  increase employment and make investments in
                                                              the area.
     The Economic Development Loan Program
     (CDBG) Funds is a source of funds for financing
     and job training.

3.   COMMUNITY IMPROVEMENT
     FINANCING
     Community Improvement Financing is
     Nebraska’s version of Tax Increment Financing
     (TIF). This is a method of financing public
     improvements associated with a private
     development project in a redevelopment area by
     using the projected increase in the property tax
     revenue that will result from the private
     development.

								
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