 |
MAY 30,
2008
2008
Missouri Legislative Session:
Strides Made, But More Progress Needed To Keep Pace In
Economic Competitiveness
Regional Economic
Development Scorecard
| RCGA Legislative
Priorities |
Result |
| Quality Jobs Program |
 |
| Enhanced Enterprise Zone Program |
|
| Mega-Project
Legislation |
|
| Life Sciences Trust
Fund |
 |
| "Grow Me State" Initiative |
 |
| Employment At-Will Codification |
|
|
The Missouri General Assembly closed its 2008
session by incrementally improving the state's
economic development tools and continuing level funding for
the Life Sciences Trust Fund, actions which will assist the
state's economy and create new jobs. These items were RCGA
priorities for Missouri to remain in the game of attracting
and growing companies. The increases in the Missouri
Quality Jobs program ($40 to $60 million) and the Enhanced
Enterprise Zone program ($14 to $24 million) will yield more
business investment into the state and generate new tax revenue
(the Department of Economic Development estimates that for each
dollar of tax credit more than $5 of new revenue is generated in
the first year for both programs). While the RCGA and statewide
economic development partners sought to eliminate the cap on
the Quality Jobs program, the $20 million increase will
provide enough growth in the program that pending business
recruitment deals will have resources available until the fund
is once again exhausted.
The Legislature also passed
legislation to extend tax credits for
"mega-projects" located in an Enhanced Enterprise
Zone. Even though this one-time legislation is designed for the
Bombardier project in Kansas City, it sets an
important precedent for future incentive packages for major
assembly or manufacturing plants. The RCGA commends Rep. Ron Richard (R-Joplin), Chair
of the House Job Creation and Economic Development Committee for
his leadership on economic development legislation and his
support for the elimination of the cap on the Quality Jobs
Program. The RCGA also congratulates Rep. David Pearce (R-Warrensburg)
and Senator Harry Kennedy (D-St. Louis)
for their sponsorship of the successful economic development
bills, HB 2058 and SB 718.
The General Assembly's actions on
the Life Sciences Research Trust Fund represented mixed
results. On the one hand, the RCGA applauds
the inclusion of medical science projects as eligible for grants
from the Fund, in addition to plant and animal science programs
that were authorized last year. On the other hand,
the Fund remains short-changed, as the Legislature again
appropriated only $13.4 million, while diverting nearly
$29 million to other purposes. The RCGA continues to
seek full funding for the Life Sciences Trust Fund, equal to 25%
of the state's tobacco settlement revenue, as
originally intended in state statute. The RCGA
recognizes Rep. Allen Icet, Chair of the House
Budget Committee for proposing $25 million in new funding to the
Life Sciences Trust Fund and Rep. Charlie Schlottach
(R-Owensville), Chair of the House Appropriations
Committee for Transportation and Economic Development, for
recommending full funding of the Life Sciences Research Trust
Fund and authorizing medical sciences projects for funding.
 The RCGA and other economic development
groups throughout the state developed and introduced the
"Grow Me State" initiative this session, which sought to
address the critical capital formation gap between Missouri and
neighboring states. A study by the UMKC Bloch School of Business
last year showed that Missouri currently spends a meager 10
cents per capita on venture capital programs, compared to an
average of $2.79 in neighboring states. The Angel Tax Credit, a
Seed Capital Co-Investment Fund, and a Proof-of Concept
Technology Loan Program were the key components of the
initiative. Despite the active support of chambers of
commerce and economic development organizations from throughout
the state, the Legislature did not act on these recommendations
in the session. It is hoped that the focus on and
interest in these initiatives in the recently concluded
session will form a foundation for action in the 2009
session.
On another key business climate issue, the
RCGA also supported codification of the employment at-will
statute to protect businesses from frivolous lawsuits based on
unproved whistleblower claims, but the Legislature once again
did not address this important issue. The RCGA continues to
support legislation that preserves the rights of employers and
protects legitimate whistleblowers who report unlawful
conduct.
Putting the 2008 Session in Perspective
The actions taken in 2008 build on the substantial
progress which has been made in the
past four years on improving Missouri's business
climate and competitiveness. The RCGA commends Governor Blunt
and the General Assembly for ushering in a new era of
support of economic development.
The state's business climate has
improved measurably starting with major tort reform and
workers compensation reform in 2005. Corporate tax and
individual tax rates have also remained stable,
providing an impetus for increased private investment.
The last four years have also seen the creation of new
economic development tools, such as the Missouri Quality Jobs
Program - now Missouri's most successful business recruitment
and attraction program. The success of the program is proved by
the repeated need to raise the original cap of $12 million up to
what is now $60 million. Similarly, the Enhanced Enterprise Zone
tax credit cap has been raised from $4 to $24
million during the same time period. The expansion of
both programs has meant greater investment and job creation
throughout the state. The Land Assemblage Tax Credit, an
innovative program to stimulate large-scale development in long
abandoned and distressed areas, was an important
accomplishments of the 2007 Special Session. In
addition, the state match for the federal New Markets
Tax Credit program will provide new financing to businesses
located in the urban core.
Even with the all these
successes over the past four years, there is still
much more to be done in order for Missouri to be competitive on
the national economic development playing field. The
intense competition to attract and retain businesses is
increasingly intense. Unlike most competitions, however, there
are no silver or bronze medals. Coming in second or third in an
economic development site selection process does not create
a single new job or a single dollar of tax revenue.
Missouri must continue and increase its support for
economic development incentives to keep pace with the ongoing
efforts of other states.
To keep Missouri in the game, the RCGA, along with
economic development partners across the state, will advance
these initiatives in the next legislative session:
- Elimination of the cap on the Quality Jobs
Program. With a $5.63 return for each dollar of tax credit
invested, more state revenue will be generated and the
uncertainty over the future availability of the program
will end.
- An end to the diversion of Life Sciences Trust
Fund money to other state purposes.
- Enactment
of the "Grow Me State" Initiative to support capital
formation and entrepreneurial development (including the Angel
Tax Credit, Seed Capital Co-Investment Fund, and a
Proof-of-Concept Technology Loan Program).
- Codification
of the employment at-will doctrine to preserve the
rights of employers and protect legitimate
whistleblowers.
Meanwhile, the RCGA congratulates the
Governor and General Assembly for continuing the momentum
of prior years in improving the State's economic
competitiveness, and looks forward to working with the next
Governor and General Assembly to keep moving Missouri
forward.
|
 |
|
|
|
|
|
| Focus on
Illinois: Urgently Needed Metro East Levee
Repair Legislation Approved!
On
May 21, Governor Rod Blagojevich signed the
Flood Prevention District Act to allow funding for
repairs to five Metro East levees along the Mississippi
River. Senate Bill 2052,
sponsored by Sen.
Bill Haine (D-Alton) and handled in
the House by Rep. Dan Beiser (D-Alton), will enable Madison, St. Clair, and
Monroe counties to impose a 1/4-cent sales tax to raise $180
million for levee repairs. The tax, which exempts food and
medicine, would sunset when this urgently-needed
infrastructure project is completed. The repairs are
necessary to protect 150,000 residents and 4,000 businesses from
a 100-year flood. The
RCGA congratulates Senator Haine, Representative Beiser and the
bi-partisan Southwestern Illinois legislative delegation for
passing the levee repair bill and protecting economic
development in the entire bi-state region.
The legislation was sparked by the
proposed FEMA maps that would declare much of the Metro East a
flood hazard area, requiring businesses and residents to
purchase flood insurance. The flood hazard area designation could stifle new
development in the now highly attractive Metro East and would
lead to significantly increased costs to businesses and
homeowners. FEMA is expected to release preliminary maps
for Madison, Monroe, and St. Clair County in
June. However, U.S. Senator Dick Durbin and U.S.
Representative Jerry Costello have inserted amendments into
federal legislation that would
require FEMA to map an entire watershed district at one
time before applying new flood insurance rates. Their
provision would unite the mapping schedules of
Illinois and Missouri sides of the St. Louis District, and delay
the permanent flood-plain designation for another two to
three years, as Missouri has been scheduled for a
later review. This two to three year window
would allow for the orderly improvements of the area's
levees.
|
|
|
|
|
|
|
|
Illinois Senators Rule The Capitol With 6-3
Victory at RCGA's 16th Annual "Battle of the Legislative
All-Stars" in Springfield
For the first
time in three years, the Illinois Senate defeated
the House, on May 14th at the 16th annual RCGA
House-Senate softball game. The sunny
day in Springfield's Lincoln Park
provided good setting for lawmakers to break from
their legislative battles and show their power on the diamond
instead of the floor. Sen. Dan Kotowski (D-Mt. Prospect) hit a
two-run home run in the first inning and Sen. Rickey Hendon's pitching kept the Senate
ahead the entire game. Sen. Kotowski and Rep. John D'Amico (D-Chicago) were named
game MVP's.
Always a highly popular event with
Illinois legislators, more than 200 Capitol observers
watched the live action, with news coverage also provided
by Springfield-area media. The RCGA thanks
its co-sponsors for making this event a success: Advantage
Capital Partners, Capitol Fax, Commonwealth Edison,
ConocoPhillips, Holland Construction Services, Oates Associates, Peabody Energy,
Professional Therapy Services, Leadership Council Southwestern
Illinois, Southern Illinois Construction Advancement Program and
Walgreens.
 |
Illinois
Secretary of State Jesse White tosses the first
pitch.
|
 |
Kevin
Riggs, RCGA Director of Illinois Government Affairs,
presents the trophy to Senate President Emil Jones (far
right) and Senate Minority Leader Frank Watson
along with (from left) Game MVP Sen. Dan Kotowski
and Sen. Rickey Hendon.
|
|
|
|
|
| |
|
UPCOMING
EVENTS
. June 4: RCGA
Energy & Environment Council meeting from 11:00
a.m. to 1:00 p.m. at the One Metropolitan Square Conference
Center - Suite 990. Bill Barbieri,
Director of Renewables for Ameren will
speak about their Pure
Power program and the utility's use of
renewable energy, and John Wooten of Peabody
Energy will report on the FutureGen project . To RSVP,
contact Eric Schneider at eschneider@stlrcga.org
or (314) 444-1148.
.
June 5: RCGA Public Policy Speakers Series
- Missouri Treasurer Sarah
Steelman, a candidate 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 and
$40 for non-members. Complimentary admission for all employees
from the RCGA Government Affairs Presidential Sponsors. To
register, go the RCGA Calendar of Events page at
www.stlrcga.org/events or contact
Marlo Young at myoung@stlrcga.org or (314) 444-1134.
. June 20: RCGA Public Policy Speakers Series -
Missouri Attorney General Jay
Nixon, a candidate for the Democrat
nomination. The luncheon will be held from 11:30 a.m.
to 1:00 p.m. at the Noonday Club. Cost is $25 for RCGA members
and $40 for non-members. Complimentary admission for all
employees from the RCGA Government Affairs Presidential
Sponsors. To register, go the RCGA Calendar of Events page
at www.stlrcga.org/events or contact Marlo
Young at myoung@stlrcga.org or (314) 444-1134.
|
|
|
 |
The
RCGAdvocate is published periodically to inform RCGA members
and government officials about important public policy matters
at the state, federal and local levels. It seeks to provide
timely, in-depth coverage on regional issues, and, at times, to
call RCGA members to action. We welcome your comments and
suggestions.
Richard C.D.
Fleming ~ President & CEO ~ (314)
444-1100 ~ dfleming@stlrcga.org
Chip Casteel ~ Senior V.P. of Public Policy ~ (314)
444-1107 ~ ccasteel@stlrcga.org
Susan Stauder ~ V.P.
of Infrastructure & Public Policy ~ (314) 444-1155
~ sstauder@stlrcga.org
Eric
Schneider ~ Senior Director of Public Policy Research ~ (314)
444-1148 ~ eschneider@stlrcga.org
Kevin Riggs ~ Director of Illinois
Government Affairs ~ (314) 444-1108 ~ kriggs@stlrcga.org
Christine Snively ~ Project Manager ~
(314) 444-1144 ~ csnively@stlrcga.org
Marlo Young ~ Executive Assistant
for Public Policy ~ (314) 444-1134 ~ myoung@stlrcga.org
|
|
|
|
|
|
The RCGA Public Policy
Speaker Series resumes with the second of three addresses by
Missouri gubernatorial candidates. Missouri Treasurer
Sarah Steelman and Republican candidate for
governor will speak to RCGA members on Thursday, June
5th 7:30 a.m. to 9:00 a.m. at the Noonday Club. As Missouri
44th state Treasurer, she manages Missouri's state
funds and investment portfolio. She also oversees the
state's linked deposit program, its unclaimed property division,
and the state's Higher Education Savings program (MO$T).
From 1998-2004, she represented the Rolla area in the
Missouri Senate. 
