The House Special Committee on Job Creation and Economic Development held an organizational meeting on Wednesday. Chairman Ron Richard invited Greg Steinhoff, Director of the Department of Economic Development, to share the department's legislative agenda and recent efforts to best utilize the resources of the department to promote Missouri as a great place to do business.Steinhoff explained the department is now focused on improving the business climate and improving Missouri's ability to compete for business from outside the state, while preserving Missouri jobs, improving Missouri communities through projects like Governor Blunt's Dream Initiative, using the Hawthorn Foundation to enhance recruitment and retention efforts, and efforts to promote entrepreneurship. The director also cited the construction projects that will be funded through the sale of MOHELA assets as a great opportunity to provide an environment for the growth and start up of new companies.
Director Steinhoff asked for the committee's support of the department's legislative package and noted the support and assistance of the Missouri Economic Development Council and other partners in developing legislation the committee will consider beginning next week.
Chairman Richard then invited me to testify regarding MEDC's legislative proposals. I explained the history of the Missouri Quality Jobs legislation for the new committee members and how we had drafted the legislation in cooperation with the Department of Economic Development following the Taimerica study. I explained the Taimerica study had noted the success of similar programs in other states and how we had carefully adapted the program for use in Missouri. Since MEDC and the DED teamed up to pass this legislation in 2005, more than 18,000 jobs have been created or will be created under new projects using the program - a monumental success by any standard. We reiterated our support for the Quality Jobs and Enhanced Enterprise Zone legislation that will be heard in the committee next week (see article below for location and time) and our support for eliminating all caps on these programs.
In other action this week, the Senate Economic Development, Tourism and Local Government Committee heard Chairman John Griesheimer's (R-26, Washington) tax increment financing legislation, SB 20. The bill would restrict the use of tax increment financing in previously undeveloped areas in St. Louis, St. Charles, Jefferson and Franklin Counties and the City of St. Louis. Senator Griesheimer explained the bill was the same bill that passed the Senate last session with the addition of a blight study. He said it was his opinion that if a bill did not pass to restrict tax increment financing in a reasonable manner, an initiative petition may be used to eliminate the use of tax increment financing altogether. He urged the members of the audience to work together to find consensus this year. During debate, Sen. Chris Koster (R-31, Harrisonville) expressed his intent to propose a constitutional change to allow tax increment financing for economic development purposes without a finding of blight. Supporters of Senator Griesheimer's bill included the Kansas City Economic Development Council and the Missouri Economic Development Financing Association. There was no opposition expressed to the committee, although the Missouri School Boards Association testified they would like to see some changes in the bill. The St. Louis County Municipal League testified they would like to see all areas of the state treated equally as the TIF law is changed.
HB 103, a similar bill filed by Rep. Chuck Portwood (R-92, St. Charles) was referred to committee in the House.
The Senate committee also heard SB 89 from Sen. Matt Bartle (R-8), a bill that would exclude headquarters of gaming establishments from eligibility for the Quality Jobs program. Speaking in support of the bill was the Missouri Baptist Convention, Missouri Family Network and Casino Watch. The Missouri Gaming Association and the Missouri Chamber of Commerce opposed the legislation.
In other action, our bill that would exempt sales and leases of property by local governments under Chapter 100 arrangements, HB 130, was referred to the House Ways and Means Committee on Thursday. The bill is sponsored by Rep. Shannon Cooper (R-120, Clinton). The Missouri Department of Revenue recently opined that such arrangements should be subject to sales and use taxes, necessitating the legislation.
I was also privileged to address a group of city and county officials attending St. Charles County Day at the Capitol, sponsored by the municipalities of St. Charles County. I presented a primer on MEDC's 2007 legislative recommendations and answered questions from the group regarding economic development issues.
