The rumors of “Special Session” are frequently circulated but it seems that it is becoming very likely that Governor Nixon will call legislators back to Jefferson City to work on an economic development package and to discuss disaster recovery efforts and financial support for those that have been affected by the storms and floods.
Leaders in the House and the Senate have come to agreements, which could not be done in the last days of regular session, and are presently working with the Governors office on a package designed to bring new businesses and jobs to our state and to save our state over $1.5 billion over the next decade. One of the key components of the bill would authorize $360 million in tax credits to help turn Lambert Airport in St. Louis into an international cargo hub. Proponents say that the creation of an international trade hub in our state would create an incredible increase in demand for all of the products and goods produced here in Missouri. It is expected to create many jobs in the St. Louis area and some out-state jobs as well.
This legislative package would also include incentives to attract high-tech businesses, data centers and college sporting events. Other critical components include numerous new accountability measures on existing economic development programs. The proposed reforms include capping the amount programs can spend and instituting a process of legislative renewal or mandatory reviews required by sunsets of programs of four to seven years. These renewals would require the programs to justify their value and economic impact to the full legislature or face automatic elimination. These accountability measures should save the state a tremendous amount of money.
Another component of the bill called MOSIRA (Missouri Science and Innovation Reinvestment Act) would create a funding model that would capture a small percentage of new economic growth in the science and innovation fields and reinvest it to provide more opportunities and jobs in those areas.
The bill contains some very powerful tools we believe will bring in new businesses, create high-paying jobs and provide a significant boost to our economy, however, there are some parts of the bill that are stirring some controversy and need to be worked out before a consensus can be reached. Some feel that the tax credits issued to upgrade Lambert Airport in St. Louis would be, once again, picking winners and losers and may not benefit the whole state. Others feel that there should be more restrictive language in the MOSIRA piece to assure that there would be no inappropriate research related to “life issues” in our state. The discussions on this package will continue as we move closer to September and a possible “Special Session”.
The Interim House Committee on Disaster Recovery has recommended that the Governor include disaster recovery in his call and discuss the potential use of the State Rainy Day Fund and other methods available to assist the vast areas devastated by tornadoes and flooding. Missouri is able to use up to $250 million from the Rainy Day Fund for disaster recovery, but repayment has to begin in the next year with the total amount to be repaid in three years with interest. There is concern that this could lead to further budget problems in the future so this needs discussion from the full legislature.
If you have questions, you may reach me at my Capitol number 573-751-9465, at the local district number, 660-582-4014, by email at mike.thomson@house.mo.gov or by mail at Room 401B State Capitol Building, Jefferson City, MO 65101.
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