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MARCH 18, 2009
Economic Development Tools Must Be Strengthened For Missouri To Compete
The Missouri Senate has recessed for Spring Break without passing the session's major economic development legislation. This bill would provide Missouri with better tools to compete in attracting and retaining businesses. In today's difficult economy, these tools are urgently needed to keep and bring jobs to Missouri.
In mid-February the Senate Jobs, Economic Development and Local Government Committee, chaired by Senator John Griesheimer (R-Washington) approved SCS Senate Bill 45 and SCS HB 191. These bills would expand successful economic development tax credit programs like the Missouri Quality Jobs Program, Missouri BUILD, the State's New Market Tax Credit Program and the Small Business Incubator Tax Credit. They also create a $5 million Angel Tax Credit, one of the components of the RCGA's "Grow Me State" Initiative to help close the capital formation gap Missouri faces with neighboring states like Kansas, Oklahoma, and Iowa. The bill would also restore the Research and Development Tax Credit to encourage more scientific research and discoveries to occur in Missouri. Small businesses would also benefit from the legislation, with the creation of the "Quality Jobs Lite" Program.
However, the version passed by the Senate Economic Development Committee has been stalled in the Senate for more than a month. Last week, Senator Brad Lager (R-Maryville) introduced a substitute to Senate Bill 45 which could have devastating impacts on business development and expansion in Missouri. This bill would place caps and sunsets on all tax credit programs, a provision which would limit Missouri's opportunity for growth and lock out the State's ability to compete. Senator Lager also proposed placing a $50 million cap on the Missouri Historic Preservation Tax Credit program, a provision which could dry up revitalization throughout St. Louis, as evidenced by the several billion dollars in private investment already leveraged by the Historic Preservation Tax Credits in downtown St. Louis and older neighborhoods throughout the region. In FY 2008, 337 Historic Preservation projects leveraged $700 million in private investments. A cap on the program would greatly diminish this activity.
The RCGA urges the Missouri General Assembly to pass a strong economic development bill as outlined in this RCGAdvocate - Special Issue Alert. The St. Louis business community cannot accept a substitute for this bill which turns the clock back on our key State incentive programs. The level of competition between states and nations for jobs is hotter than ever, and Missouri cannot unilaterally disarm. Please make sure that our legislators know how important this bill is for ensuring economic growth. Contact your Senator today to make your voice known. To find your Senator please click here and type in your zip code in the Legislator Look up section. |
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RCGA's "Grow Me State" Initiative Passes House Economic Development Committee; Recognized By National Coalition for Capital
The RCGA's top economic development priority for the Missouri legislative session, the "Grow Me State" Initiative, was passed by the House Job Creation and Economic Development Committee on March 3rd. House Bill 189, sponsored by Rep. Tim Flook (R-Liberty) and co-sponsored by 18 legislators from across the state, seeks to close the capital formation gap in Missouri to spur growth in advanced technology small businesses.
The "Grow Me State" Initiative would establish a seed capital technology business finance program, a proof of concept technology business finance program and an Angel Tax Credit. The $10 million Seed Capital Revolving Fund would allow the State to co-invest in seed and early stage advanced technology businesses in Missouri to achieve their next level of growth. The funds could be used for IP development, prototype creation, and business operations. The $1.25 million Proof of Concept loan program would award early-stage, advanced technology companies up to $75,000 to help commercialize their products. A company would repay in double the amount of the loan within five years. The bill would also establish the $5 million Angel Tax Credit program. Investors in advanced technology start-up companies would be eligible to receive tax credits for investing in qualified small businesses.
This week, the Grow Me State Initiative earned the endorsement of the National Coalition for Capital. In making their announcement, Ben Dupuy, the organization's Executive Director said, "The National Coalition for Capital applauds the Grow Me State Initiative for leading the call for the State of Missouri to dedicate the resources necessary to growing more technology-based businesses and better paying jobs for Missourians. Missouri has fallen behind in growing tech-based businesses, and the Grow Me State Initiative is exactly what is needed to increase the jobs and tax revenues that are so sorely needed right now. In addition, the "Grow Me State" Initiative has earned the support of Forward Metro St. Louis, Missouri Chamber of Commerce, Associated Industries of Missouri, Missouri Chamber Federation, Columbia Chamber of Commerce, Kansas City Area Development Council, Greater Kansas City Chamber of Commerce, Springfield Area Chamber of Commerce, and Cape Girardeau MAGNET.
The RCGA thanks Rep. Flook and the members of the House Job Creation and Economic Development Committee for unanimously approving the "Grow Me State" Initiative, and looks forward to its further consideration on the House floor.
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| Focus on Illinois: RCGA "Lobby Day" Advocates for Capital Bill and Infrastructure Projects in Southwestern Illinois.
On March 11th, a delegation of business leaders from the RCGA and Leadership Council Southwestern Illinois went to Springfield to present the region's legislative agenda to the Illinois General Assembly Leadership and our regional delegation. The group, led by RCGA Illinois Public Affairs Committee chairman, Doug Sitton, President of Sitton Consulting Group, and Leadership Council Chairman and RCGA Board Member Vaughn Vandegrift, Chancellor of Southern Illinois-Edwardsville, met with Illinois Senate President John Cullerton (D-Chicago), Senate Minority Leader Christine Radogno (R-Lemont), and House Deputy Majority Leader Art Turner (D-Chicago). In addition the group met with the regional delegation including Senate Majority Leader James Clayborne (D-East St. Louis), Senate Assistant Minority Leader David Luechtefeld (R-Okawville), Senator Bill Haine (D-Alton), Senator Kyle McCarter (R-Lebanon) and Rep. Jay Hoffman (D-Collinsville). Todd Maisch, Illinois Chamber of Commerce Vice President for Government Affairs, was the keynote speaker at lunch, and later in the day the group met with Warren Ribley, Director of the Illinois Department of Commerce and Economic Opportunity, Jim Reimer, Director of the Illinois Capital Development Board (ICDB) and Darryl Harris, ICDB Deputy Director, to talk about economic development projects in Southwestern Illinois.
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RCGA delegation meets with Senator Bill Haine (D-Alton) and Senate President John Cullerton (D-Chicago). From left to right: James Pennekamp, SIU-Edwardsville; Linda Miller, Kunkel Properties; Kevin Riggs, St. Louis RCGA; Doug Sitton, Sitton Consulting Group; Sen. Haine; Sen. Cullerton; Emmy McClelland, BJC Healthcare; Suzanne Butler, Johnson Properties; Mark Johnston, Attorney-At-Law; Lenny Batycki, Gateway International Raceway and Chip Casteel, St. Louis RCGA
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RCGA Delegation meets with Assistant Senate Minority Leader Dave Luechtefeld (R-Okawville), Senate Minority Leader Christine Radogno and Senator Kyle McCarter (R-Lebanon). From left to right: Doug Sitton; Jim Pennekamp; Chancellor Vaughn Vandegrift, SIUE-Edwardsville; Linda Miller; Sen. Luechtefeld; Sen. Radogno; Sen. McCarter; Lenny Batycki; Suzanne Butler; Emmy McClelland; Mark Johnston and Chip Casteel
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The RCGA's and Leadership Council's top priority for the Southwestern Illinois region is passage of a capital bill, which has not passed the General Assembly in nine years. The timely completion of the new Mississippi River Bridge and related highway improvements, intermodal freight projects at the Tri-City Port District, and increased public transportation funding were presented to the Legislative Leadership as key infrastructure priorities for the region. The group advocated for strengthening and enhancing economic development tax credits, greater brownfield redevelopment funding and improved venture capital programs to leverage private investment and stimulate job growth. Additional investment K-12 and higher education were also discussed.
The RCGA Legislative Day ended with a reception at the Sangamo Club attended by members of the Illinois General Assembly. The RCGA thanks the Legislative Leadership and our local legislators for their commitment to our bistate region.
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Missouri Transportation Needs Discussed at RCGA Public Policy Council Meeting
The March 13th RCGA Public Policy Council meeting focused on transportation funding issues facing Missouri. Missouri Transportation Alliance Chairman Bill McKenna spoke about the nonpartisan alliance of citizens, transportation stakeholders, business group, labor organizations, and community leaders who believe Missouri's transportation infrastructure is critical to citizen safety and job creation. The Alliance is holding public forums in all 10 MODOT transportation districts to assess regional needs and priorities with the goal of developing a statewide transportation program. The RCGA is a strong supporter of the Alliance, with Susan Stauder serving as co-chair for the St. Louis district's efforts along with Bill McKenna. He described how MoDOT has improved the condition of Missouri roads through Amendment 3 money, but the funds have expired and the construction program will soon shrink. According to MoDOT, there is some $31 billion of transportation needs in Missouri with no funding mechanism to cover them going forward.
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| Bill McKenna, Chair of the Missouri Transportation Alliance, describes the state of Missouri's transportation system and its challenges at the RCGA Public Policy Council meeting |
Adella Jones, Vice President of Government Affairs of Metro, updated the group on the proposed system changes for the regional transit system. Due to severe budget shortfalls, METRO is cutting routes west of I-270 and reducing service on Metrolink and Metrobus. While Metro is looking at a number of options to restore funding, they were recently rejected by the Federal Transit Agency in their plan to use federal stimulus money for operations rather than capital improvements. Tom Shrout, Executive Director of Citizens for Modern Transit, presented a possible solution for stable funding of Metro. His organization and the Greater St. Louis Transit Alliance, (of which the RCGA is a member), is working with Senator Robin Wright-Jones (D-St. Louis) to create a transportation development district for public transportation in St. Louis City and St. Louis County. The bill, Senate Bill 477, which passed the Senate Transportation Committee, would allow the two jurisdictions to ask citizens to set up the district and fund it through a sales tax. If the bill passes the General Assembly, voters could decide a funding mechanism in 2010. The RCGA testified in support of Senate Bill 477 and joins the Alliance in working to advance this bill through the General Assembly.
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| Adella Jones of Metro explains the transit system's service reductions to occur at the end of March. |
Tom Shrout of Citizens for Modern Transit outlines a legislative proposal to create a St. Louis area transit district. |
Rep. Steve Hobbs (R-Mexico), Chair of the Missouri House Special Committee on Transportation and Infrastructure Funding, expressed his support for SB 477 and said he would handle the bill in the House of Representatives. Rep. Hobbs spoke at the Public Policy Council meeting about the federal stimulus money and its impact transportation funding in Missouri. He also strongly endorsed the St. Louis "Big Idea" -- the China-Midwest Hub Commission, and stressed the importance of this project for Missouri businesses throughout Missouri.
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| Rep. Steve Hobbs discusses future transportation and infrastructure spending with the RCGA Public Policy Council. |
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| St. Louis Community College Hosts Legislators at RCGA Breakfast in Jefferson City
Ann Brand, St. Louis Community College Vice President of Government and Community Relations hosted Missouri legislators to breakfast on March 11th in Jefferson City. Their event was one of the RCGA Legislative Breakfasts that occur bi-weekly in February, March and April and provide a pleasant, informal setting to discuss issues at the Capitol.
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| (from left to right) Tricia Workman, RCGA, Rep. Paul Quinn (D-Monroe City), Ann Brand, St. Louis Community College, Sen. Wes Shoemyer (D-Clarence), House Assistant Minority Leader J.C. Kuessner (D-Eminence) enjoy the RCGA Legislative Breakfast in Jefferson City. |
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Seated from left: Rep. Shane Schoeller (R-Willard) Rep. Doug Funderburk (R-St. Peters), Rep. Jason Smith (R-Salem) and Rep. Tim Jones (R-Eureka) get ready for their day with Ann Brand, Rep. Steve Brown (D-Clayton) and Sen. Jeff Smith (D-St. Louis), standing.
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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
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