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APRIL 9, 2008

Urgent Action Needed by Missouri House To Strengthen State's Economic Development Tools

Two bills currently under review by the Missouri House of Representatives would substantially strengthen the State's competitiveness by increasing proven development programs. In these uncertain economic times, immediate action is needed to expand the Quality Jobs and Enhanced Enterprise Zone programs and to create a new Angel Tax Credit program.

The two bills are:

  • House Bill 2058(sponsored by Representative David Pearce) contains an increase in annual Quality Jobs program tax credit cap from $40 million to $60 million, and increase in the annual Enhanced Enterprise Zone tax credit cap from $14 to $24 million and a new $5 million Angel Tax Credit program to spur investment in advanced technology start-up companies. This bill is on the House Perfection Calendar.
  • Senate Bill 718 (sponsored by Senator Harry Kennedy) has passed the Senate with the Quality Jobs and Enhanced Enterprise Zone increases, but it does not yet contain the Angel Tax Credit that is vital to entrepreneurial growth. The RCGA urges the Legislature to add the Angel Tax Credit provision to this bill, which has been second read in the House.
The ongoing success of the Quality Jobs and the Enhanced Enterprise Zone programs in creating jobs is unchallenged. A recent analysis by the Missouri Department of Economic Development found that the Quality Jobs tax credit returns $5.63 in new state revenue for each dollar invested, and has generated $2.5 billion in new investment in less than three years. The Enhanced Enterprise Zone program returns $4.96 for every dollar invested, and has created jobs and investment in nearly 50 cities across Missouri. This success has caused these programs to reach their tax credit limits.

Now is not the time to handcuff Missouri's efforts to attract and retain business. Missouri's future well-being depends on positive action this year on economic development legislation. The RCGA urges the Missouri House of Representatives to take up and pass these vital economic development bills.

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Economic Development Legislation
(HB 2058 & SB 718)


. Increases tax credit cap of Quality Jobs Program to $60m.
(in HB 2058 & SB 718).

. Increases Enhanced Enterprise Zone tax credit cap to $24m.
(in HB 2058 & SB 718)

. Creates new Angel Tax Credit to spur investment in start-up advanced technology companies.
(in HB 2058 only) 

. Both bills await action by the House of Representatives. Please contact:

Speaker of the House
Rod Jetton
(573) 751-5912
rod.jetton@house.mo.gov

Speaker Pro-Tem
Bryan Pratt
(573) 751-8636
bryan.pratt@house.mo.gov

House Majority Leader
Steven Tilley
(573) -751-1488
steven.tilley@house.mo.gov

. Please contact Chip Casteel RCGA Senior Vice President of Public Policy at ccasteel@stlrcga.org for any follow-up from your contacts.


 

Employment-At-Will Legislation Needed To Maintain Missouri's Favorable Business Climate

On Tuesday, the Missouri Senate debated but then tabled Senate Bill 1046 (sponsored by Sen. Rob Mayer). This bill would restore balance in the employment-at-will doctrine and strengthen Missouri's business climate by protecting employers from illegitimate whistle-blower lawsuits. The RCGA joins its Forward Metro St. Louis partners (Civic Progress, Regional Business Council, and Partners for Progress) in calling for the codification of the employment-at-will statute. 

This legislation introduced by Senator Mayer will correct recent court decisions that have begun to reduce the burden of proof that employees need to seek whistle-blower protection.  In two recent cases, the Eastern District Appellate Court of Missouri found that "it was unnecessary for an employee to 'allege or prove conclusively the law has been violated in order to state a cause of action' when the employee held a reasonable belief illegal conduct or conduct against a clear mandate of public policy has occurred".  These court decisions mean a discharged at-will employee need not prove any wrongdoing by his or her employer to receive whistle-blower protection in Missouri.

SB 1046 is needed to protect legitimate whistle-blowers who report unlawful conduct of their employer, and to protect employers who do not - and do not intend to - violate the law.  The bill also creates a good faith and reasonable belief standard for both whistle-blowers and those employees who refuse to engage in serious misconduct, a standard that is clear and fair for both employees and employers.

The RCGA urges the Senate to take up SB 1046 again soon, so that employers in Missouri can be protected from illegitimate whistle-blower lawsuits and Missouri remains welcoming for business. Contact Senate leadership (see sidebar) to urge them to bring this issue back for debate and passage!

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Employment-At-Will Legislation
(SB 1046)


. Restores balance in the employment-at will-doctrine by protecting employers from illegitimate whistle-blower lawsuits.

. Corrects recent court decisions that have begun to reduce the burden of proof employees need to seek whistle-blower protection.

.  Creates a good faith and reasonable belief standard for both whistle-blowers and employees who refuse to engage in serious misconduct. 

.  Voice your support for SB 1046 by contacting:

Senate President Pro-Tem
Michael Gibbons
(573) 751-2853
mrgibbons@senate.mo.gov

Senate Floor Leader
Charlie Shields
(573) 751-9476
charlie_shields@senate.mo.gov

. Please contact Chip Casteel, RCGA Senior  Vice President of Public Policy at ccasteel@stlrcga.org for any follow-up from your contacts.

Focus on Illinois: Community Leaders Stress Need for Capital Bill To Area Lawmakers.

On March 27th at Belleville West High School, more than 250 community leaders and residents met to discuss Illinois Governor Rod Blagojevich's Fiscal Year 2009 budget at a special House hearing held by Rep. Tom Holbrook, Rep. Dan Beiser, Rep. Dan Reitz, and Rep. Wyvetter YoungeBusiness leaders testified in strong support of Illinois Works, a $25 billion capital program that will improve the transportation and educational infrastructure of the Metro East region (see sidebar). The capital bill has been stalled for several years, as legislative leaders and the Governor have failed to agree on a funding mechanism.

The RCGA urges all sides to come to an agreement and pass a capital bill, a neccessity to kick-start construction of important projects in Southwestern Illinois.




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St. Louis Area Projects Ready for Funding in Capital Bill


. $69m for new science lab at SIU-Edwardsville

$56m for IL159/117 ramp in Collinsville

. $49 for New Mississippi River Bridge

$46m for IL 255 Seminary Road to IL 111/U.S. 67

$39m for I-55 at IL 162 reconstruction.

$35m for U.S. 50 Lebanon Bypass

$24m for Gateway Connector I-255 to I-55/I-70/U.S. 40

MSD Rate Commission Recommends Debt-Financing of Capital Plan To Lower Rates For Consumers And Businesses.

At their April 10th meeting, the Metropolitan Sewer District Board of Trustees will review the recommendations of the MSD Rate Commission to use debt-financing for the District's latest 5-year capital plan. The capital plan will rehabilitate and upgrade the sewer system to comply with existing and anticipated state and federal requirements.

The RCGA was represented on the Rate Commission by Steve Sullivan, General Counsel of Ameren,  which met from January to March, to review a new rate proposal. The previous District proposal of 100% "pay-as-you-go" financing over five years was rejected by the Board of Trustees, due concerns over the steep increases which would have been borne by businesses and consumers.


The new proposal recommended by the Rate Commission includes $275 million in bond financing as part of an overall 46% debt/54% cash financing plan to pay for $661 million in wastewater improvement projects. Stormwater improvements will paid from 100% of the revenue generated from a new impervious surface charge made effective earlier this year. The newly proposed rate change also includes an adjustment to stormwater rates to lessen the short-term impact of the impervious-surface charge. In addition, the stormwater rate increases are phased in over seven years, instead of five as previously proposed.

If the Board of Trustees adopts the Rate Commission's recommendations, St. Louis City and St. Louis County residents in the MSD service area will vote on the new rate increase on the August 2008 ballot. If rejected by the voters, MSD will implement the 100% "pay-as-you go" plan, which will lead to much higher rates.

 

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MSD Rate Increase Proposal
FY 2009-FY 2014


. Uses debt financing to pay for $661m in capital improvement projects.

. MSD-area voters in St. Louis City and St. Louis County  would decide debt-financed rate schedule on August 2008 ballot.

. If approved by voters, rates for businesses would increase 26% over 5 years.



St. Louis Community College Hosts RCGA Legislative Breakfast in Jefferson City

More than 40 Missouri legislators and regional government affairs executives enjoyed the April 2nd RCGA Legislative Breakfast at the Capitol Plaza Hotel, sponsored by St. Louis Community College and hosted by RCGA Public Policy Council member Ann Brand, Director of Community and Government Relations.  The RCGA hosts bi-monthly breakfasts at the Capitol Plaza from 7:00 a.m. to 8:30 a.m., so if you are in Jefferson City, please join us!  See Upcoming Events for the next breakfast on April 16th.

 

(from left to right) Ann Brand, Sen. Rita Heard Days, and Leann Chilton of BJC HealthCare catch up with each other at the RCGA Legislative Breakfast.
Rep. Michele Kratky, Ann Brand, Rep. Sue Schoemehl, and John Sondag of AT&T Missouri discuss current legislative issues.
Rep. Jim Lembke enjoys a cup of coffee with Ann Brand.

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UPCOMING EVENTS
                    

April 10: Immigration Conference organized by the Missouri Chamber of Commerce, from 9:30 a.m. to 2:00 p.m. at the One Metropolitan Square Conference Center - Suite 990. Find out how recent changes and proposed immigration legislation on the state and federal level could impact your businesses. Linda Shapiro and Kelly Simon, attorneys from Thompson Coburn, will speak on employment practices. The keynote speech will be by Representative Tim Flook (R-Liberty), member of the House Special Committee on Immigration. Chuck Pryor, Deputy Chief of Staff for MO Governor Matt Blunt will give an update on state agency enforcement of current immigration policies. For agenda and to register click here.

. April 16: RCGA Legislative Breakfast at the Capitol Plaza Hotel in Jefferson City from 7:00 a.m. to 8:30 a.m., sponsored by University of Missouri St. Louis. For more information and to RSVP, contact Marlo Young at
myoung@stlrcga.org or at (314) 444-1134 by Friday, April 11.


. April
29: RCGA Environmental Council from 11:00 a.m. to 1:00 p.m. at the One Metropolitan Square Conference Center - Suite 990. Daniel Jay, a LEED-registerd architect from Christner, and Monica Fries, an environmental attorney will provide an national overview of sustainablity initiatives in metropolitan regions. A panel of local government officials will describe St. Louis regional sustainability initiatives: Frank Miles, Administrator of Madison County Planning and Development Department, Tim Embree, St. Louis Mayor Slay's Environmental Liasion,  Dr. Dolores Gunn, St. Louis County Director of Health and Mike Duvall, St. Charles County Director of Environmental Services. RSVP to Marlo Young at
myoung@stlrcga.org or at (314) 444-1134 by Friday, April 25.

. April 30: St. Louis Regional Educational Roundtable - Early Childhood Education from 7:30 a.m. to 10:00 a.m. at the One Metropolitan Square Conference Center - Suite 990. Program moderated by Betty Marver of Grace Hill Settlement House and featuring panelists Nancy Fisherman of Pennsylvania's Success by Six and Johnnie Little, Assistant to MO Senator Maida Coleman.

. May 2: RCGA Public Policy Speakers Series - Missouri Gubernatorial Candidates. The first of the planned addresses by each of the three major candidates for Missouri Governor will be by Missouri Congressman Kenny Hulshof,  who is running for the Republican nomination. The breakfast will be held from 7:30 a.m. to 9:00 a.m. at the Noonday Club. Cost is $25 for RCGA members ($50 for 3) and complimentary admission for all employees from the RCGA Government Affairs Presidential Sponsors (see company logos at end of the RCGAdvocate). For more information contact Marlo Young at
myoung@stlrcga.org or at (314) 444-1134. Dates for Attorney General Jay Nixon and State Treasurer Sarah Steelman speeches will be announced soon.

. May 6: Small Business Roundtable with U.S. SBA National Ombusdman Nicholas Owens from 8:00 to 9:30 a.m. at the Center for Emerging Technologies, 4041 Forest Park Avenue in St. Louis. Mr. Owens will discuss how small business owners can more effectively deal with federal agency regulatory requirements. RSVP to Eric Schneider at
eschneider@stlrcga.org or (314) 444-1148.

. May 20-21: Midwest Energy Policy, Climate Change,  and Energy Security Conference at the Missouri Botanical Garden, 4344 Shaw Boulevard in St. Louis. Conference panelists will discuss climate policy at the federal, state, and local level; energy security, greenhouse gas emissions and carbon footprints, energy efficiency, and regulatory/permitting issues. This conference event is presented by the Regulatory Environmental Group for Missouri (REGFORM). For more information and to register
click here or contact Sallie Keeney at skeeney@regform.org or (573) 761-9322.


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The RCGAdvocate is published periodically to inform RCGA members and government officials about important public policy matters at the state, federal and local levels. It seeks to provide timely, in-depth coverage on regional issues, and, at times, to call RCGA members to action. We welcome your comments and suggestions.

Richard C.D. Fleming ~ President & CEO ~ (314) 444-1100 ~ dfleming@stlrcga.org
Chip Casteel ~ Senior V.P. of Public Policy ~ (314) 444-1107 ~ ccasteel@stlrcga.org
Susan Stauder ~ V.P. of Infrastructure & Public Policy ~ (314) 444-1155 ~ sstauder@stlrcga.org
Eric Schneider ~ Senior Director of Public Policy Research ~ (314) 444-1148 ~ eschneider@stlrcga.org
Kevin Riggs ~ Director of Illinois Government Affairs ~ (314) 444-1108 ~ kriggs@stlrcga.org
Christine Snively ~ Project Manager ~ (314) 444-1144 ~ csnively@stlrcga.org
Marlo Young ~ Executive Assistant for Public Policy ~ (314) 444-1134  ~ myoung@stlrcga.org



 
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