Post by Logan on Feb 21, 2016 19:57:11 GMT -6
Hogan proposes giving Northrop Grumman $20 million to secure division headquarters and jobs
Gov. Larry Hogan has proposed giving $20 million to Northrop Grumman Corp. to secure the defense giant's newly formed Mission Systems divisional headquarters in Linthicum and 10,000 jobs in Maryland.
The money would be given to Northrop Grumman as a conditional loan from the state's Sunny Day Fund. The debt would be forgiven if the defense contractor invests $100 million in capital projects and retains at least 10,000 workers in the state over a decade.
If it fails to meet the benchmarks, Northrop Grumman would be required to repay some or all of the loan, as occurred with Bechtel Power Corp. in 2014 when it moved jobs from Frederick to Virginia, violating the terms of a 2011 loan package that required most of those jobs to remain in Maryland.
If approved by the General Assembly, the funding would be disbursed to Northrop Grumman, the state's largest manufacturing employer over four years. The budget for the state Department of Commerce, which includes the $20 million, will receive its first hearing Friday.
Read more: www.baltimoresun.com/business/bs-bz-northrop-grumman-state-funding-20160219-story.html
Gov. Larry Hogan has proposed giving $20 million to Northrop Grumman Corp. to secure the defense giant's newly formed Mission Systems divisional headquarters in Linthicum and 10,000 jobs in Maryland.
The money would be given to Northrop Grumman as a conditional loan from the state's Sunny Day Fund. The debt would be forgiven if the defense contractor invests $100 million in capital projects and retains at least 10,000 workers in the state over a decade.
If it fails to meet the benchmarks, Northrop Grumman would be required to repay some or all of the loan, as occurred with Bechtel Power Corp. in 2014 when it moved jobs from Frederick to Virginia, violating the terms of a 2011 loan package that required most of those jobs to remain in Maryland.
If approved by the General Assembly, the funding would be disbursed to Northrop Grumman, the state's largest manufacturing employer over four years. The budget for the state Department of Commerce, which includes the $20 million, will receive its first hearing Friday.
Read more: www.baltimoresun.com/business/bs-bz-northrop-grumman-state-funding-20160219-story.html