|
August 3, 2011
Missouri Legislative Leaders and
Governor in Talks for a Special Session
|
(from
left) House Speaker Steven Tilley, Senate
President Pro
Tem Rob Mayer, St. Louis Mayer Francis
Slay, and St. Louis
County Executive Charlie Dooley at
Lambert-St. Louis Inter-
national Airport announcing the
legislative compromise.
Photo by Johnny Andrews, St.
Louis Post-Dispatch
|
On July 20th, Missouri's House and Senate
leaders held a series of news conferences to announce that
the two chambers had reached
a historic agreement on a comprehensive economic development
package which they hope to pass during a special session in
September. The following day,
Governor Jay Nixon gave a speech in St. Louis where he voiced
support for most of the measures in the legislative compromise,
and said he planned to
convene a special session.
While they are still working out the details of many
provisions, legislative leaders and the Governor appear
to agree on the foundation of a job creation package,
which would include:
- Aerotropolis Trade Incentive Act
-- $360 million in tax credits over 15 years to help
create an international air cargo hub at Lambert-St. Louis
International Airport: $60 million to encourage freight
forwarders to direct cargo through St. Louis, and $300 million to
encourage the development of warehouse space for international
cargo near the airport.
- Missouri Science and Innovation
Reinvestment Act (MOSIRA) -- Captures a small portion of
the wage growth from science and technology industries to provide
a stable source of funding to invest in high-technology
entrepreneurial infrastructure and foster growth of
21st Century jobs.
- Data
Center incentives -- Provides sales and use tax
exemptions for new and expanding data storage centers, which
require large capital investments and highly skilled
information-technology specialists.
- Revisions to existing tax credits
-- Reduces a number of current tax credit programs, including
lowering the caps on the Historic Preservation and Low Income
Housing programs, as well as many of the other recommendations
outlined by the Governor's Tax Credit Review Commission last
year.
The proposal
outlined by House and Senate leaders also includes $13 million in
incentives to help attract major amateur sporting
events, a restructuring of the Missouri Housing
Development Commission board, a tax amnesty provision, and
measures relating to job retention and job training.
In total, the
legislative package is estimated to save the state $1.5 billion
over the next 15 years. Legislative leaders have
also encouraged the Governor to include local control of the St.
Louis Police Department in the call for a special session.
|
Missouri Governor Jay Nixon
announces
his intention to call a special session
at
the Donald Danforth Plant Science
Center in St. Louis.
Photo by Wiley Price,
St. Louis American.
|
Meanwhile, Governor
Nixon is touting what he calls the
"Made in
Missouri Jobs Package," which also includes
Compete Missouri, a program that would streamline many of the
state's current economic development tools and allow for up-front
incentives in certain cases. The Governor has also
stated that he intends to include a bill that would push back the
state's presidential primary to comply with national Republican
and Democratic party rules, and that he would consider adding a
bill to give St. Louis local control of its police department if
there is consensus on the issue. Another area that has
received attention for possible consideration during special
session is funding for disaster relief efforts in Missouri given
the immense impact of this year's flooding and tornadoes (see
related story below).
In the past it has been the Governor's office that
has called the legislature into special session and set the
parameters of its agenda. However, the legislature may also
call itself into special session if a petition is signed by
three-fourths of the members of each chamber (123 Representatives
and 26 Senators). Legislative leaders are urging the
Governor to call the General Assembly into special session
shortly after Labor Day.
|
|
Missouri Senator Ron Richard Speaks to RCGA Public
Policy Council
|
Sen. Ron Richard
(R-Joplin)
|
On July 22nd Missouri Senator Ron
Richard (R-Joplin), who is Vice-Chair of the
Senate Committee on Jobs, Economic Development and Local
Government, as well as Chair of the Senate's
Interim Committee on Natural Disaster Recovery, spoke to
the RCGA's Public Policy Council about important issues facing
the state, including the upcoming special session and relief and
recovery efforts following the devastating tornado that struck
Joplin this May.
Sen. Richard, who has long been a staunch supporter
of economic development programs, said he was pleased there will
be a special session on the comprehensive economic development
bill, and hoped that it would take place "sooner rather than
later."
He said critics
of the Aerotropolis incentives need to realize that "if it
doesn't work, it won't cost the state a nickel." He added
that he believes it will work, and said other Midwestern cities
wouldn't also be considering similar incentives if they weren't a
good idea. Sen. Richard also explained that he's
always thinking of "what's next" for economic development in
Missouri, and said the state should be focusing on "where it
wants to be 20 to 30 years from now."
Turning to a discussion of the May
22nd tornado's devastation in Joplin, Sen. Richard,
who is a former mayor of the city, said he saw the immediate
results following the storm, as he was home with his
wife taking cover when it hit. He called the destruction
"unprecedented," explaining that the tornado was nearly a mile
wide and its path was six miles long, cutting through the very
center of town. The EF-5 tornado, which is estimated to
have had 200 mph winds, only moved through the city at about 20
mph, which is why it caused even more destruction than most
similar storms. In the city of 52,000, nearly
one-third of all retail shops are destroyed, and 7,000-8,000
homes are "gone." Many of these homes were older
and paid for, but not insured at levels that allow for
replacement, given current home-building prices.
|
|
| Neighborhoods flattened and a hospital
severely damaged following the tornado. AP
Photo.
|
A survivor combs through the debris
following the storm AP Photo.
|
Sen. Richard noted that he plans to
ask the legislature for help with the housing situation, saying
"we need to get people back into
homes." He expressed appreciation for all of the
help that's already come from St. Louis and all over the state,
nation and world, saying that tens of thousands of volunteers
have come to lend a hand, and many are still there. Sen.
Richard suggested that any further donations be sent
to Joplin Tomorrow, an organization started by former U.S. Senator
John Danforth that seeks to raise $10 million to rebuild Joplin's
business community so that it thrives again and creates even more
jobs than were in place before the disaster.
|
Patrick McKeehan, Executive
Director of the Leadership Council
Southwestern Illinois
|
Patrick McKeehan,
Executive Director of the Leadership Council Southwestern
Illinois, also spoke to the Public Policy Council on July
22nd about efforts to upgrade the Mississippi River
levee system protecting Metro East businesses and
residents.
Patrick explained that the current levee system was built and
approved as a 500-year levee in the 1940s and 1950s. It
protects 155,000 residents and more than 55,000 jobs in Madison,
Monroe and St. Clair Counties. However, when the Corps
de-acreditted the levees, these residents and businesses were
threatened with expensive flood insurance mandates.
The region quickly responded by passing a quarter-cent sales tax
designated for levee repairs and forming the Southwestern Illinois Flood
Protection District Council. The Flood Protection
District's mission is to implement a new plan to achieve
certification of the levee system for $151 million in five years
or less, limit economic hardship during the time that flood
protection is being improved, and eliminate the Special Flood
Hazard Area designation, which could hamper future economic
development. The group is currently working with their
regional Congressman to pass a bill that would delay the flood
insurance mandate while the levees in Southwestern Illinois are
being repaired. Click here to view Patrick's
presentation.
|
Steve Johnson, Executive Vice President
of
Economic Development for the
RCGA
|
Steve Johnson,
Executive Vice President of Economic Development for the
RCGA, also
presented to the group on the RCGA's strategic plan for economic
development, and provided an update on the negotiations
with China for establishing an air cargo hub in St.
Louis. Steve noted that the St. Louis region
trended stronger than both the national average and the average
of the top 100 metro areas in terms of employment changes during
the recession. He also reiterated the five strategic
initiatives of the RCGA: (1) support and grow key industry
sectors, (2) recruitment in key industry sectors, (3) increase
the rate of start-up ventures, (4) talent as a strategic
imperative, and (5) leverage all transportation assets.
Steve also stated that the Chinese are serious about
significantly expanding the market share of air cargo being flown
on Chinese airlines, and intend to establish one or more hubs in
the U.S. to achieve their goal. He said that the Aerotropolis
legislative incentives (see article above) are critical to making
this plan viable in St. Louis, and is encouraged that legislative
leaders have announced a comprehensive economic development plan
for the special session.
|
|
|
Focus on Illinois: IDOT's Mary Lamie Speaks to
RCGA's Illinois Public Affairs Committee
|
Mary Lamie, IDOT Deputy Director, Region
5
Engineer
|
On July 22nd Mary Lamie, Deputy
Director, Region 5 Engineer for the Illinois Department of
Transportation (IDOT), spoke to the RCGA's Illinois
Public Affairs Committee about construction projects in
southwestern Illinois. She emphasized that this has been a
major period of new projects in the region due to the federal
stimulus, Illinois Capital Bill, and new Mississippi River Bridge
project. In an average year there is usually between $150
and $225 million spent on projects, but last year there was $400
million and this year there will be about $500 million
spent on construction projects. There are more
than 200 individual projects currently underway, including
important improvements on IL 255/US 67, I-55, IL 159 near
Collinsville, I-270 at the Chain of Rocks Canal, the I-70
relocation at IL 3, and the New Mississippi River Bridge.
Mary also lauded IDOT's 10-week pre-engineering technician
program, which helps individuals obtain a basic understanding of
what it takes to be a successful engineering technician for
IDOT. To view her presentation,
click the graphic below. [Editor's Note: At
the meeting Mary also announced that she would soon be leaving
IDOT for a private engineering firm. The RCGA appreciates
her great work for our region and wishes her well!]
|
Map of construction projects related to
the new Mississippi River Bridge. Click on the
graphic above to view Mary Lamie's
presentation.
|
|
|
Rep. Tom Holbrook
(D-Belleville)
|
Sen. David Luechtefeld
(R-Okawville)
|
Sen. David Luechtefeld
(R-Okawville) and
Rep. Tom Holbrook (D-Belleville) were also
present at the July Illinois Political Affairs Committee meeting
and shared their thoughts on the 2011 legislative session.
Sen. Luechtefeld noted that the Illinois General Assembly
had finally recognized the severity of the state's fiscal
situation, and stressed -- while further budget cuts
will be difficult -- that the cuts will be better than
bankrupting the state. He also stated that the recently
approved workers compensation reform bill will save employers
money, but expressed concern over Illinois' ability to compete
with other states regarding the overall business climate.
Rep. Holbrook commented he was proud that the legislature passed
its first bi-partisan budget in 20 years, and that Republicans
and Democrats in both chambers had a hand in crafting the
budget. He also noted that Illinois has created more
industrial jobs since the start of the recession than all of its
border states combined.
|
|
|
|
| |
|
