Senate Advances Broad-Based Tax Relief

Missourians could soon see the biggest tax overhaul in the state in nearly 90 years under a proposal that recently received first-round approval in the Missouri Senate. Senate Bill 26 would cut personal and corporate state income taxes on hard-working Missourians while freeing up capital for job creators across the state. The last time the state Legislature cut income taxes was in 1921.

Senate Leader Tom Dempsey, R-St. Charles, said this broad-based tax relief will help send a strong signal that the Show-Me State is open for business.

“Tax reform is a crucial part of our economic development policy,” said Dempsey. “This bill is a priority for this legislative session. Providing tax relief to all working Missourians, employers and businesses will make us one of the most competitive states in the country.”

Under the proposal, Senate Bill 26 would lower personal and corporate state income tax by .75 percent over a five-year span. Small businesses would be allowed a 50 percent deduction for business income, which would be phased in over a five-year period. The measure would also raise the state sales and use tax by a one-half percent, phased in over five years. The measure is expected to cut taxes across the state by $450,000,000.

Bill sponsor, Senator Will Kraus, R-Lee’s Summit, says the tax cut in conjunction with tax credit reform will ultimately have a positive return on the state budget.

“This pro-growth, pro-jobs bill will allow us to put money back into tax payers’ hands so they can go out and spend it and create more jobs,” said Kraus. “I’ve never worked a bill harder than I have worked this bill.”

Majority Floor Leader Ron Richard, R-Joplin, said the Senate proved they can work to compromise on important legislation. “Unlike Washington D.C., we aren’t addicted to taxing and spending,” said Richard. “Here in Missouri we are cutting inefficient programs and providing the savings to working Missourians and job creators.”

The bill needs another vote of approval before it heads to the House for its consideration. For more on this bill and others, go to www.senate.mo.gov.

Snowstorm didn't stop Capitol progress

By Miica Patterson

(MDN News) -- Neither snow nor rain nor heat nor gloom of night could keep Missouri lawmakers from passing their bills this week.

After leaving the state Capitol early two weeks ago, state lawmakers remained in the building for a full week of work last week, despite continuing snowfall. Missouri experienced a major winter storm with heavy snowfall, sleet and freezing rain with some areas in the state getting as much as a foot of snow on Thursday, Feb. 21, according to the National Weather Service.

Both the House and Senate adjourned early Wednesday, Feb. 20, so legislators could return home to their districts before the storm hit.

Sen. Dan Brown, R-Rolla, said the winter storm did put Senate committee meetings behind schedule but they made it up this week.

Referring to an extended debate over a bill that would make deep cuts to the state's tax credit programs, Senate President Pro Tem Tom Dempsey, R-St. Charles, said some senators were here into the early morning hours of Wednesday, Feb. 27, to get worked finished in the chamber.

Rep. Chris Kelly, D-Columbia, said House committees also worked longer hours to make up for lost time because of the storm. He said the extra time spent in House committees varied but the storm didn't slow down progress too much.

"It was a very minor disruption," Kelly said. "It wasn't significant in any way."

In 2011, Rep. Wanda Brown, R-Lincoln, was hospitalized after getting in a car accident in Camden County during that year's blizzard. Brown injured her neck and back during the accident.

While Brown since recovered and is still a member of the House, leaders in both chambers are much more cautious now about working through snowstorms when members have to get home.

Senate Advances Measure to Rein in Tax Credits

The Missouri Senate today approved a measure to rein in inefficient tax breaks that could save Missouri taxpayers nearly $1.3 billion over the next 15 years.

Senate Bill 120 would cap Missouri’s most costly tax incentives, including the Low-Income Housing and Historic Preservation tax credit programs. Part of the estimated savings from the reduction in those tax credit programs would help fund new job-creating incentives, including credits for data storage centers and the “Missouri Export Incentive Act.”

Senate Leader Tom Dempsey, R-St. Charles, said this comprehensive economic development and tax credit reform bill is part of Senate leadership’s commitment to cutting government waste while creating a more business-friendly environment.

“We have to find the delicate balance of protecting funding for vital programs while offering tax incentives in a financially responsible way to businesses to stay competitive,” said Dempsey. “Offering these efficient tax incentives will help create jobs in the state. With the tremendous savings realized from this important legislation, we can use a portion of that savings to support these new incentives while saving our state more than $1 billion over the next decade.”

Senate Bill 120 would place caps on the Low-Income Housing tax credits at $50 million dollars per year and $45 million for incentives given for Historic Preservation projects. Currently, Missouri allocates more Historic Preservation tax credits than any other state in the nation and is second in Low-Income Housing tax credits, costing Missourians more than $300 million a year.

The new measure would provide tax credits for new data storage centers and also create the “Missouri Export Incentive Act,” which would authorize air export tax incentives for freight forwarders in Missouri.

Senate Eric Schmitt, R-Glendale, says approval of the air export tax incentives is a good example of this legislative session’s push for pro-employment policies.

“Missouri is naturally positioned as a gateway to the rest of the world,” said Schmitt. “It is vitally important that we seize this opportunity to encourage new investment and jobs we currently do not have in our state.  This bill can give Missouri a place in the global marketplace and change the trajectory of our economy for decades.”

According to Majority Floor Leader Ron Richard, R-Joplin, passing SB 120 is part of a broad base tax policy reform underway in the Senate that will make Missouri a part of the global economy

“This bill is the culmination of a lot of hard work and dedication by the Senate in the past few years to create meaningful tax credit reform in our state,” said Richard. “This represents a much better investment of taxpayer dollars, which I believe is what the people of Missouri expect and need.”

The bill will now head to the House for consideration. For more on this bill and others, go to www.senate.mo.gov.

Senate Advances Two Measures That Will Encourage Economic Development in the Show-Me State

Today the Missouri Senate advanced two bills designed to promote job creation and to help encourage charitable donations. Senate Bill 10 and Senate Bill 20 will now be sent to the House for consideration.




Senate Leader Tom Dempsey, R-St. Charles, said after years of working on these bills, they are finally in a place that will allow Missouri to grow its economy and benefit communities across the state.



“Tax credit reform is a legislative priority for us this year,” said Dempsey. “These are necessary bills, and a real testament of how this Senate can operate, by improving the state and making government more accountable. These incentives passed today will create jobs and give Missouri an economic advantage.”



Senate Bill 10 will make Missouri more competitive when bidding against other states to host amateur sporting events. The measure would authorize the state to issue up to $3 million annually to organizers who bring events like the NCAA basketball tournaments to the Show-Me State.



Sponsor Sen. Eric Schmitt, R-Glendale, said now is the time for Missouri to make its move. Some other states currently offer similar tax incentives, causing Missouri to fall behind in the bidding war when it comes to hosting these events.



“This incentive is critical if our state is going to stay competitive in attracting these kinds of events to Missouri, and we must,” said Schmitt. “Amateur sporting events are a huge economic boost to communities across the state. Visitors stay at local hotels, shop at local stores, and eat at local restaurants. That helps those businesses thrive, and it also raises much-needed revenue for our state without increasing taxes on hard-working Missourians.”



Senate Bill 20, also given approval today by the Senate, will extend certain benevolent tax credits to people who make donations to pregnancy centers, child crisis nurseries and food pantries.



Sponsor Sen. Bob Dixon, R-Springfield, said it’s common sense to renew these credits.



“With its swift action, the Senate has demonstrated its strong support for this ounce of prevention,” Dixon said. “Allowing these tax credits to expire does not save taxpayers one dime in the long run. Encouraging individual donors to personally direct their charitable dollars to local programs that do the most good is fiscally responsible, easing future burdens on the state budget and avoiding bureaucracy and the political process.”



Majority Floor Leader Ron Richard, R-Joplin, said he’s proud of the work the Senate did this week. He said with good communication and cooperation, the Senate was able to pass two bills that have hit major road blocks in the last couple of years.



“We had good dialogue this week between both parties. That dialogue reminded me of the conversations senators had on the floor when I would visit the Capitol as a kid. These were productive discussions that will benefit Missourians and create jobs.”



Both measures now move to the House. To learn more about these bills or to track the progress, visit www.senate.mo.gov.

Senator Brad Lager Named to Chair Senate Committee

State Senator Brad Lager was named by Senate Majority Leader Tom Dempsey to chair the Commerce, Consumer Protection, Energy, and Environment committee for the 97th General Assembly for the 1st Regular Session. As Senate Leader, Dempsey names all committees, appoints chairmen, and members of the majority caucus to those committees. Lager and other chairmen will be tasked with holding public hearings and drafting legislation on issues important to Missourians.

Senate Votes to Override Governor’s Veto of Religious Freedom Act

(Missouri Digital News) -- The Missouri Senate voted 26-6 Wednesday to protect the religious freedom of all Missourians by overriding the governor’s veto of Senate Bill 749.  Sponsor Sen. John Lamping, R-Ladue, said the bill was filed in direct response to President Obama’s mandate under the federal Affordable Health Care Act that forces employers to offer health care services even if those services are against their religious beliefs or moral convictions. 

“This is not an issue about access,” said Lamping.  “All employees still have access to these services.  This is an issue about who pays for them.”

Under current law, employers are not required to offer health care coverage for employees.

A number of employers have announced their intent to discontinue health insurance coverage for their employees as a result of the federal government’s mandate. 

“The stories we are hearing of businesses that are considering dropping their insurance coverage rather than violating their beliefs are alarming,” said Senate Majority Floor Leader Tom Dempsey, R- St. Charles.  “This veto override was extremely important, because it gives employers the option to continue to provide health care benefits without being forced to pay for something that goes against their religious beliefs or moral convictions.”

SB 749 passed the General Assembly during the regular legislative session, only later to be vetoed by the governor.  In order to override the veto in the Senate, 23 votes were needed.  The House also took up and overrode the governor’s veto, so the bill becomes law effective immediately. 

Senate Leader Robert N. Mayer, R-Dexter, added, “Religious freedom is the cornerstone of America.  It is important we protect Missourians from the federal government infringing on our First Amendment rights.  By overriding this veto, we are keeping government out of our businesses and from telling religious organizations they must violate their beliefs to fulfill this mandate.”

Teacher tenure and failed school districts bills fall in Missouri Senate

Two of the major education issues for the 2012 legislative session failed in the Missouri Senate.

The Senate rejected an effort Tuesday, April 3, to eliminate the state teacher tenure system. A day earlier, Monday, April 2, a Senate filibuster forced the chamber to cast aside a measure that would have allowed St. Louis County schools to reject students from the unaccredited St. Louis City school system.

The tenure-elimination plan was rejected 17-15 by the Senate. Under current law, a Missouri public school teacher is given automatic job protection after five years.

"People want to have reform, and we can't just walk away from this," said the proposal's sponsor, Sen. Jane Cunningham, R-St. Louis County.

Senate Education Committee Chairman David Pearce, R-Warrensburg, sponsored the move to shelve elimination of teacher tenure and said the process was going too fast.

"This has long-term ramifications for the future of Missouri," Pearce said.

Cunningham said she was surprised by the vote and described it as "terribly disappointing."

"The colleagues in the Senate put government employees ahead of students," Cunningham said when asked about the vote.

Then on Thursday, April 5, the Senate approved a different approach. On a voice vote, they approved a provision that would increase from 5 years to 10 the number of years a teacher must be employed before obtaining job-protection tenure.

The amendment was sponsored by Senate Republican Leader Tom Dempsey, R-St. Charles.

"Moving it from five to 10 years means teachers will continue to grow and develop," Dempsey said.

The measure, given preliminary approval by the Senate, also eliminates the "last in, first out" principle for laying off teachers when budget problems force cutbacks. Under current law, layoffs start with the least senior teacher.

One major education issue did clear the Senate. It removes the two-year waiting period for the state to take over unaccredited school districts. The measure was prompted by the accreditation loss effective Jan. 1, 2012, of the Kansas City School District.

Senate Advances Extension of Unemployment Benefits for 10,000 Missourians

The Missouri Senate today voted 28-5 to advance a bill that extends unemployment benefits for Missouri families who have reached, and those nearing, the 79 week cut-off. Senators also adopted an emergency clause 28-5 meaning the extension to 99 weeks of benefits would take place immediately upon the governor’s signature. House Bill 163 was handled in the Senate by Sen. David Pearce, R-Warrensburg. He noted that a compromise negotiated by Senate Leader Robert N. Mayer, R-Dexter, and Senate Majority Floor Leader Tom Dempsey, R-St. Charles, led four senators to allow a vote on the bill.

“I’m glad we were able reach a vote and move one step closer to making these extended benefits a reality for the Missouri families that rely on them in this tough economy,” Pearce said.

Dempsey said today’s vote brought five weeks of debate to an end. He said the reality of the benefits lapsing last week added pressure to move the bill forward.

“This is a real and pressing issue for more than 10,000 Missouri families now and potentially thousands more,” said Dempsey. “That is why, in the Senate, we never gave up and continued to do everything we could to get to a vote to extend the benefits.”

Mayer and Dempsey said taxpayers win with the twofold compromise that includes a commitment from them to identify and work to eliminate appropriations of $250 million of federal stimulus spending projects in Missouri.

“We all share the frustration with the federal government’s continued overspending and mounting federal deficit,” said Mayer. “But, for the majority of the Senate, we believed it was important to extend benefits for Missouri families while they continue to look for work in this great recession.”

The second part of the compromise included in an amendment to the bill reduces Missouri’s state share of initial unemployment benefits from 26 weeks to 20 weeks. The amendment’s sponsor, Sen. Mike Kehoe, R-Jefferson City, said the change does not affect current recipients of benefits.

“The federal government has spent Missouri businesses into an almost $1 billion debt,” said Kehoe. “Today we reduced the burden on businesses to offset the additional federal taxes that will be placed on Missouri businesses to pay off that debt. But more importantly, this will encourage businesses to hire and expand. I have said all along that this session is about jobs, jobs, jobs, and this amendment encourages hiring and job expansion."

The bill now returns to the House where that chamber will consider whether or not to accept changes to the bill adopted in the Senate. The House can request to go to a conference to iron out differences or choose to take up and pass the bill as amended by the Senate. Pending the House’s approval, the bill then moves to the governor’s desk for his signature.

Senate Advances Extension of Unemployment Benefits for 10,000 Missourians

Missouri families who have reached, and those nearing, the 79 week cut-off of extended unemployment benefits are one step closer to seeing those benefits continued to 99 weeks thanks to a compromise that led four senators to allow House Bill 163 to advance. Senate Leader Robert N. Mayer, R-Dexter, and Senate Majority Floor Leader Tom Dempsey, R-St. Charles, led the negotiations.

“We all share the frustration with the federal government’s continued overspending and mounting federal deficit,” said Mayer. “But, for the majority of the Senate, we believed it was important to extend benefits for Missouri families while they continue to look for work in this great recession.”

Mayer and Dempsey said the twofold compromise included a commitment from them and Senate Appropriations Chairman Sen. Kurt Schaefer, R-Columbia, to identify and work to eliminate the appropriations of $250 million of federal stimulus spending projects in Missouri.

“We have made a commitment to look at re-appropriations in the governor’s budget recommendations for House Bill 18 and identify ways we can truly reduce the spending of federal stimulus dollars in Missouri,” said Mayer.

The second part of the compromise added Senate Amendment 2 to the bill, which was adopted on a voice vote. The amendment reduces Missouri’s state share of initial unemployment benefits from 26 weeks to 20 weeks. The amendment’s sponsor, Sen. Mike Kehoe, R-Jefferson City, said the change does not affect current recipients of benefits.

“The federal government has spent Missouri businesses into an almost $1 billion debt,” said Kehoe. “Today we reduced the burden on businesses to offset the additional federal taxes that will be placed on Missouri businesses to pay-off that debt. But more importantly, this will encourage businesses to hire and expand. I have said all along that this session is about jobs, jobs, jobs, and this amendment encourages hiring and job expansion."

Dempsey had brought the bill up for debate three times prior to today’s debate. He said the reality of the benefits lapsing added pressure to reach a resolution.

“This is a real and pressing issue for more than 10,000 Missouri families now and potentially thousands more,” said Dempsey. “That is why, in the Senate, we never gave up and continued to do everything we could to get to a vote to extend the benefits. Today, that work paid off and these families are one step closer to receiving their benefits.”

A hearing is scheduled Monday in the Senate Ways and Means and Fiscal Oversight Committee. From there, the bill would return to the Senate floor for a vote. Upon approval, it returns to the House where that chamber will consider whether or not to accept changes to the bill adopted in the Senate. The House can request to go to a conference to iron out differences or choose to take up and pass the bill as amended by the Senate. Pending the House’s approval, the bill then moves to the governor’s desk for his signature.