2007 Legislative Outlook: Springfield chamber seeks minimum wage revision, job reform

Springfield Area Chamber of Commerce’s 2007 legislative agenda, approved at its Dec. 18 board meeting, includes a stance on minimum wage in opposition to overwhelming support.

The chamber is in favor of removing the indexing provision, which increases the minimum wage annually based on inflation and would, the chamber says, put undue pressure on the state’s economy. The provision was part of the minimum wage increase bill approved by 76 percent of voters in November.

“The chamber encourages lawmakers to consider legislation that would eliminate the indexing provision from the recently passed minimum wage proposition, in order to protect the state’s economy,” the agenda states.

Associated Industries of Missouri, which announced its 2007 agenda Dec. 20, also points to minimum wage as a key issue. AIM is not currently taking the stance that the increase of the state’s minimum wage, passed in the November election and set to take effect Jan. 1, should be repealed, AIM President Gary Marble said.

“We’re not going with the approach of going in and changing it at this point,” he said. “That would be premature. I think if nothing else, it’s just out of respect for the voters – 75 or 76 percent of the people voted for it, so let’s enact it as written.”

The group’s preferred solution is legislation that would create a committee to monitor the wage and its impact on businesses.

Economic development

Groups also are looking at several state incentive programs, some of which are running out of available funds.

The House Economic Development and Job Creation Committee is focused on advancing a package of bills members say would make Missouri more attractive to businesses. Similar bills passed in the House but died in the Senate during the 2006 session, when state Rep. Ron Richard, R-Joplin, was committee chairman.

A top priority will be expanding the Quality Jobs Act to remove limits on the amount of tax credits the state can grant annually, said Richard, who expects to remain committee chair this session. The act was created to allow employers to recover a portion of the tax withholdings on wages from newly created jobs.

“There shouldn’t be a limit because it is new money,” Richard said. “It doesn’t cost the state anything.”

Richard said he also is working to remove the annual cap on enhanced enterprise zones, which in 2007 will be $7 million. He added that the legislature is awaiting Gov. Matt Blunt’s economic development proposals, so additional bills may be introduced before the legislative session begins Jan. 3.

The Springfield chamber supports both of Richard’s major points.

“The enhanced enterprise zone program has already maxed out,” said Sandy Howard, public affairs manager for the chamber. “Tax credits that are available through that program have been fully utilized. That program has been very helpful for our area, so we want to make sure we have that as a tool to try to attract business to the community.”

The EEZ program has led to new job creation for several local companies, including Central States Industrial Equipment & Service, Webco Inc. and LeggettWood Springfield.

Quality Jobs and the EEZ program also are important to the Missouri Chamber of Commerce and Industry, which presented its 2007 legislative agenda earlier this month.

Numerous other issues are also on the state chamber’s to-do list, including:

• Changes to employment-at-will laws to protect employers;

• Elimination of the corporate franchise tax and renewal of deductibility for federal income tax;

• Changes to the workers’ compensation Second Injury Fund to prevent the fund from going broke – AIM also supports these changes; and

• Further reform to the state unemployment insurance system.

University pushes for increased funding

Missouri State University’s major legislative point for the coming year echoes other schools across the state: increased funding.

In its 2007 legislative session goals, approved in November, the school supported the state Coordinating Board for Higher Education recommendation for nearly $110 million in higher education spending for fiscal 2008. That amount would include $9.6 million for MSU – an 11.7 percent increase over fiscal 2007 amounts.

Paul Kincaid, MSU’s assistant to the president for university relations, said it’s unlikely that amount will actually end up in the school’s coffers.

“The big step is when the governor presents his budget in mid-January,” he said. “He takes recommendations from all the agencies, including the CBHE, and puts them into a budget within a larger context. I’d be shocked if the CBHE recommendation was accepted verbatim.”

The school also expressed support for the Lewis and Clark Discovery Initiative, which would provide $29.7 million in funding for the school’s facilities reutilization plan. The money would come from the sale of a portion of the assets of the Missouri Higher Education Lending Authority.

Springfield Area Chamber of Commerce also threw its support behind the increased funding and the Lewis and Clark Initiative.