A local business preference ordinance has been proposed to support small businesses, prevent high
unemployment, and increase municipal tax revenues in Springfield, Missouri. The ordinance would
provide an 8 percent bid credit to law-abiding local businesses bidding on the City’s public works projects.

Read the full report here: An Economic Impact Analysis of Hiring Local in Springfield, Missouri

  • The City plans to invest $471 million on infrastructure improvements over the next five years.
  • Local workers spend 67 percent of their pre-tax income back in the local economy compared to
    just 30 percent for nonlocal workers.
  • Employing local workers on the City’s Capital Improvements Program projects would boost the
    economy by $785 million and save or create jobs for more than 3,200 residents over the next five
    years.
  • However, employing nonlocal workers on the projects would result in local businesses—such as
    stores and restaurants—missing out on $71 million in sales and saving or creating jobs for 400
    fewer Springfield residents over the next five years.
  • Employing local workers on the City’s Capital Improvements Program projects would increase
    local tax revenues—primarily from sales taxes and property taxes—by $11.1 million compared
    with an alternative scenario in which they are completed by nonlocal workers.
  • Hiring local contractors would increase investments in local apprenticeship training funds by $1.4
    million over the next five years.

A strong Springfield is built locally by highly trained workers. Awarding public works projects to local
businesses who employ Springfield residents would boost economic development, promote training
opportunities for young residents, and spur local tax revenues. As a result, the proposed local business
preference ordinance would deliver good value for taxpayers.