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October
26, 2011
Missouri Special Session
Ends Without Approval of Key Economic Development Package
One Bright Spot: Passage of
MOSIRA
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Missouri Governor Jay Nixon
(D)
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On October
21st Governor Jay
Nixon signed Senate Bill 7, the Missouri Science and Innovation
Reinvestment Act (MOSIRA), marking the state's long-term
commitment to technology-based economic
development.
MOSIRA, which has been a key RCGA priority for a number of years,
would provide a predictable, stable source of state funding for
investments in advanced technology entrepreneurial infrastructure
to foster the growth of 21st Century jobs.
The RCGA has worked with the Missouri Biotechnology Association
(MOBIO) and many
other business organizations
across the state to educate legislators on the importance of
making a sustained strategic investment in innovation.
We are grateful for the bipartisan support for the bill,
which passed the Senate 30-4 and the House 94-48 during the
legislature's Special Session.
There is, however, one potential trouble-spot in
Senate Bill 7, which is a contingency clause linking its
enactment to the passage of Senate Bill 8, the
comprehensive economic development bill that failed to pass in
the Special Session. The Governor's office issued a
statement saying "Contingency clauses contained in legislation
have been voided in the past, and ultimately a court may have to
determine the effect, if
any, of the contingency clause contained in Senate Bill 7.
With the signing of the bill, the State will initiate steps
toward the implementation of Senate Bill 7."
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The Missouri State Capitol Building in Jefferson
City
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The House and Senate were unable to reach an
agreement during Special Session on Senate Bill 8, which contains
several of RCGA's other top legislative priorities, including
incentives for an international air cargo and multimodal
logistics hub at Lambert Airport, data centers, the attraction of amateur
sporting events, job retention, and up-front funding for highly
competitive economic development projects. The
bill also contained many changes to existing tax credit programs
recommended by the Governor's Tax Credit Review Commission.
House and Senate leaders announced that they had
reached agreement on the entire job creation package on July
20th, but by the time the Governor finally called the
Special Session on August 22nd, opponents from various
quarters had already started chipping away at support for the
agreement, and the two bodies regrettably were not able to hold
that deal together during Special Session. Yesterday the
Senate adjourned "sine die," meaning the body will not reconvene
until the regular legislative session begins in January.
The RCGA is deeply disappointed by the failure of the
Legislature to pass a major statewide economic development bill
(for the fourth straight year, due to an inability to
implement separate agreements on certain tax credit
provisions.) The bill before them, broadly touted
by House and Senate Leadership in announcing their compromise at
news conferences throughout the State, would
have leveraged the State's assets and opportunities for economic
growth to create tens of thousands of Missouri jobs and billions
of dollars in net new economic benefits at a
time when statewide job growth has lagged in the bottom tiers
nationally in recent months. At the end of the
day, "inside baseball" considerations prevented "getting to yes"
on a bill that enjoyed broad support in the business and civic
communities throughout Missouri based on its compelling benefits
and advantages.
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Focus on Illinois: RCGA's Illinois Public
Affairs Committee Learns about Wood River Refinery, Veto Session
Issues
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Melissa Erker of
ConocoPhillips
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On October
21st Melissa
Erker, Manager of Public Affairs for ConocoPhillips' Wood River
Refinery, spoke to the RCGA's Illinois Public Affairs Committee
about their facility in Roxana, IL. ConocoPhillips recently
invested $3.8 billion in the oil refinery, which was originally
built in 1917. Some 4,000 construction workers were
employed at the peak in 2009, and the new facility will support
500 permanent jobs. Ms. Erker said that the Wood
River Refinery is using the "best available technology" to
dramatically reduce air pollutants from the plant.
She also explained that ConocoPhillips will be splitting into two
companies -- an "upstream" unit that will keep the ConocoPhillips
name and focus on oil exploration and production, and a
"downstream" unit that will focus on refining, transportation and
marketing, as well as chemical production activities. The
Wood River Refinery will be housed in the "downstream" unit,
which Ms. Erker said will have to keep a sharp eye on costs to
remain competitive.
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An aerial view of the ConocoPhillips Wood River
Refinery, which will be
able to handle 356,000 barrels per day
after the expansion project is
complete, making it
the sixth largest refinery by capacity in the
nation.
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Rep. Dwight Kay
(R-Edwardsville)
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Illinois legislators
Sen. Kyle McCarter (R-Lebanon) and Rep.
Dwight Kay (R-Edwardsville) also updated the group on
the fall Veto Session, which began yesterday. Rep.
Kay discussed a pro-business legislative package (HB
3811) that he introduced with Rep. Paul Evans (R-O'Fallon) as
a blueprint to help attract and retain jobs in Illinois.
The bill would extend an Enterprise Zone designation for
20 years, reestablish the state Research & Development tax
credit (which 38 other states already have), repeal the recent
deduction of eligible years for net operating loss
carry-forwards, and increase the state's inheritance tax
deduction from $2 million to $5 million to help preserve family
farms as they are passed down to the next generation.
Rep. Kay also stressed that pension reform is
important, and that the total owed by the state for
unfunded liabilities is equivalent to $31,000 per Illinois
household.
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Sen. Kyle McCarter
(R-Lebanon)
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Sen. McCarter expects
debate over reform of the state's pension plan to be a major part
of the Veto Session, saying the current system is not
sustainable.
He said the issue isn't about "how much we care for [state
employees], or how much they deserve, but what the system can do"
financially. He said SB
512, sponsored by Senate President John Cullerton
(D-Chicago), would give existing state employees three
options: pay more to stay in the current benefits system, move
into the "Tier 2" system for new employees, or move to a
self-managed defined contribution plan like a 401(k).
Sen. McCarter also commented on the "smart grid" bill
vetoed by Governor Quinn, saying that he supports the
modernization of the electric utility network, but that he
believes the cost of smart meters and other improvements should
be paid for by rate payers voluntarily, rather than being
mandated by the state.
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UPCOMING
EVENT
November 8 -
RCGA Energy and Environment Council Meeting
RCGA's next Energy and
Environment Council meeting will discuss
Missouri Energy Policy and Outlook
with:
- Kevin Gunn,
Chairman of the Missouri Public Service Commission
- Josh Campbell, Executive
Director for Missouri Energy Initiative
- Steve Kidwell, Vice
President of Regulatory Affairs for Ameren Missouri
- Jim Hearing, Director of
Marketing for Laclede Gas Company.
The meeting will occur at the RCGA’s Regional
Collaboration Center at One Metropolitan Square (211 N. Broadway)
– Suite 1300 in downtown St. Louis. To
register, click here. The RCGA Energy
and Environment Council meeting is free for RCGA members.
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