Brad Lager's Capitol Report: Fighting for Missouri’s Taxpayers

The final weeks of every legislative session are long and demanding as we work to complete our top priorities before the final gavel falls. Throughout this session, we have focused on improving the economic climate in our state thereby increasing the number of economic opportunities for all Missourians. Last week, the Missouri Senate took a bold step by passing a sweeping economic development bill that will fundamentally change the way Missouri utilizes taxpayer-funded financial incentives.

In recent years, there has been much debate but little action around tax credit and economic incentive reform. Those individuals who benefit greatly from these subsidies have vigorously opposed this reform. Through campaign contributions and political support, this small but influential group of beneficiaries has wielded enough influence to ensure these budget-busting programs remained untouched while more essential state programs suffered tremendous budget reductions. Budget shortfalls, difficult decisions and the realization that these programs are poisoning our state’s fiscal health, created the dynamic by which we were able to finally pass legislation to correct the size and scope of our tax credit programs which will reduce their impact on our state budget. If passed by the House and signed by the Governor, this legislation will save Missouri’s taxpayers between $1.6 and $2 billion over the next 15 years.

This legislation also provides the much needed flexibility to reallocate the remaining dollars towards areas that will provide the greatest long term benefits to our state. Currently, Missouri’s incentive programs do not require a minimum return on the taxpayer’s investment. This legislation establishes the requirement that job creation incentives must yield at minimum a dollar for dollar return. While it is incomprehensible to me why this provision has not been in place all along, I am pleased we were finally able to include this common sense measure.

This legislation is a victory for fiscal restraint, an important step in restructuring our economic incentives, and vital to our state’s long term economic growth. Increased oversight and transparency combined with reasonable flexibility will ensure our economic development dollars are invested in emerging industries that will provide sustainable long term economic opportunities. But most importantly, this legislation is one piece of the solid financial foundation necessary to support economic growth and long term success.

As always, please feel free to call, email, or write with your ideas or concerns. The Capitol number is (573) 751-1415, my email is brad.lager@senate.mo.gov and my mailing address is Room 422, State Capitol Building, Jefferson City, MO 65101.