Difficult Missouri Budget Situation Looms as Planning for 2010 Legislative Session Continues 

Legislators return to Jefferson City next week for the annual Veto Session, and the conversations at the Capitol will likely include a focus on the gloomy outlook for the state budget.  Fiscal Year 2009 (ended on June 30th) reported a 6.9% decrease in general revenue from the previous year, which State Budget Director Linda Luebbering called the worst in a generation.  While legislators and the Nixon Administration have set aside a substantial amount of federal budget stabilization money to help prop up the budget, forecasts are for a 2% to 4% reduction in the current fiscal year, potentially making FY 2010 revenues the lowest in four years.

With the difficult budget situation firmly in mind, the RCGA Public Policy Council has begun developing the RCGA Legislative Agenda for the 2010 session.  The RCGA Agenda promotes policies and programs aimed at growing the St. Louis regional economy and strengthening our community in the areas of economic development, transportation, education and health care.  These issues are more important than ever as the region works to climb out of the national recession. The RCGA Board of Directors will then adopt the 2010 Legislative Agenda in November, which will guide our advocacy activities in the coming months.

Missouri Budget Situation

FY 2010 Revenues estimated to be $7.25 billion, lowest revenue in four years and $750 million less than FY 2008.

State budget for FY 2010 will use $1 billion in federal budget stabilization funds to close budget gap, even after $84 million of vetoes and $325 million of withholdings from Governor Nixon.

Net General Revenue for the first two months of FY 2010 decreased 5.6% compared to the previous year.

FY 2010 budget forecasts 2% to 4% general revenue decline.

The STAR Bonds Financing Act (SB 1909), passed by the Illinois General Assembly and sponsored by Senator James Clayborne (D-Belleville) and Rep. Tom Holbrook (D-Belleville), would allow the $1 billion project to collect 100% of the State sales taxes generated from the project.  The Governor's amendatory veto lowered the amount captured to 50%.  In his veto message Governor Quinn said that his change limits the State’s liability, while the private sector still benefits from the incentives.  Holland told the St. Louis Post-Dispatch that Quinn’s actions could "stop University Town Center in its tracks", but he remains committed to the project.

Approval of the Governor's amendatory veto requires a majority vote; an override to return the legislation to its original language would require a two-thirds majority.  If the override fails, the entire bill dies.  The Illinois General Assembly will convene its Veto Session on October 14th.

University Town Center

Proposed 900-acre district in Glen Carbon bounded by I-270, I-255, Illinois 157 and Illinois 162.

The planned $1 billion project is expected to generate $15.5m in income tax from 10,000 construction jobs during the five-year construction phase.

Retail and entertainment district is expected to generate 3,100 permanent jobs.

At the RCGA’s Illinois Public Affairs Committee meeting in August, Southern Illinois University Edwardsville Chancellor Vaughn Vandegrift described the impressive growth occurring on the SIUE campus and the economic benefit it brings to the St. Louis region.  The vision at SIUE is to be recognized nationally for excellence in programs and for development of professional and community leaders.  The "E" has already been recognized by U.S. News and World Report as one of America’s Best Colleges, listed on Princeton Review’s America’s Best Business Schools, and received honors by the National Science Foundation.

Chancellor Vaughn Vandegrift presents the Southern Illinois University Edwardsville story to members of the RCGA's Illinois Public Affairs Committee

Chancellor Vandegrift described the recently completed Student Success Center that houses the academic achievement center, health and counseling services, international student services and disability support services.  The Center caps a $140 million capital program on the campus.  Another $100 million of capital improvements are planned, including a new science building and dental laboratory recently approved in the capital bill by the Illinois General Assembly.

For every state tax dollar spent at SIUE five dollars are generated in the local economy for an estimated economic impact of $356 million.  More than 100,000 people visit the campus each year, and with SIUE's recent acceptance into Division I athletics that number will continue to grow.  For Chancellor Vandegrift’s full presentation click on the SIUE graphic below.

The RCGA's Illinois Public Affairs Committee also heard from Darryl Harris, Deputy Director of the Illinois Capital Development Board.  The Capital Development Board (CDB) is the construction management agency for Illinois that oversees the construction of new state facilities, such as prisons, college and university buildings, mental health hospitals and state parks. 

Mr. Harris went over the Metro East's project list from the State's new capital bill.  The capital bill will bring more than $300 million in new funding for road and bridge projects in the area, including $75 million for a new interchange at I-70 and Route 3 and $71 million for a four-lane roadway from Godfrey north to the Madison County line.  In addition to $79 million for the SIUE science laboratory, $19 million will be directed to campus improvements at Southwestern Illinois College and $16 million to Lewis and Clark College for construction of the National Great Rivers Research and Educational Center. 

For a complete list of Metro East projects from the capital bill, click here.  Bonding for the projects will be funded from increased taxes on video poker, wine, spirits, beer, and motor vehicle licenses.

Southern Illinois University Edwardsville

Total enrollment 13,602 (includes 2,625 graduate students)

Student to faculty ratio 16:1

FY 2009 Budget = $238 million

Freshman enrollment up 12% over four years

Recognized by U.S. News and World Report as one of America's Best Colleges and by Princeton Review as one of America's Best Business Schools

Total annual economic impact on St. Louis region = $356 million

More than 100,000 visitors to campus each year.

The RCGA's Climate Prosperity Project hosted a "Greening On A Shoestring" seminar to help St. Louis businesses get started on their sustainability initiatives.  Mary Ann Lazarus, Firmwide Sustainable Design Director for HOK and Glenda Abney, Director of the Missouri Botanical Garden's Earthways Center walked through several strategies for companies to reduce their energy, water, and materials consumption and improve their indoor environment.  Lazarus reported on new research showing rental rates and occupancy rates higher for green office space than traditional office environments.  She noted that the next generation of workers will prefer to work in green buildings.  Abney emphasized that sustainability should be incorporated throughout the entire operations of a business including strategic planning and financial decisions.  To fully integrate sustainability strategies an occupant engagement process must occur that inspires employees through participation, education and outreach programs.

For their complete presentation click on the flower graphic below.

Glenda Abney and Mary Ann Lazarus (at podium) present sustainability strategies to RCGA members.

Blake Salger, Director of Community Outreach for Emmis Marketing Group and Craig Jung, Principal of StlouisGreen.com spoke about local resources for green businesses. A new website, ecolifestl.com has been launched as a one-stop source for a greener St. Louis. The website features resources on community events, green building, green products and services, and interactive blogs to answer questions on sustainability. Ecolifestl.com also contains a comprehensive green business directory and the latest issue of Health Planet magazine.

Blake Salger and Craig Jung describe the resources available on the new web portal, ecolifestl.com

The next seminar by the St. Louis Climate Prosperity Project will occur on October 7th, "Measuring Energy Consumption and Reducing Costs".  Attendees will learn how to calculate their greenhouse gas inventory from experts at Burns & McDonnell and hear about energy-efficiency incentive programs from Ameren and Laclede Gas.  For more information, contact Eric Schneider at eschneider@stlrcga.org

Sustainabile Business Road Map

1. Identify long-term sustainability goals, outcomes and messaging.

2. Establish Green Teams and commit budget resources.

3. Assess your current state.

4. Develop short-term and long-term implementation plans, timelines, and policies.

5. Implement the plan through pilots and full-scale projects.

6. Evaluate and measure progress.

7. Celebrate sustainability successes.

September 15th: RCGA Energy and Environmental Council from 7:30 - 9:00 a.m. at the RCGA's Regional Collaboration Center, One Metropolitan Square (211 N. Broadway) - Suite 1300 in downtown St. Louis. Missouri Public Service Commissioner Kevin Gunn will speak about the PSC's role in promoting energy efficiency and renewable energy.  The Council will also learn about green jobs training programs at St. Louis Community College and Lewis and Clark Community College. To RSVP, please contact Sherri Bailey at sbailey@stlrcga.org.

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 of Public Policy ~ (314) 444-1144 ~ csnively@stlrcga.org
Sherri Bailey ~ Executive Assistant for Public Policy ~ (314) 444-1134 ~ sbailey@stlrcga.org