Guest Column: Legislators must see opportunity in economic climate

While economic diversity makes Missouri more resilient than many states in the nation amid the national economic downturn, reports of plant closings and layoffs are still hitting close to home.

But as many businesspeople know, opportunity often exists in searching against the grain for innovative ideas. That is why, as state leaders in business, we should not let fear cloud our efforts toward growth and prosperity.

A new administration, new players in the Missouri legislature and a starkly different economic outlook than we've seen in recent years will make cooperation, not rhetoric, a necessity.

Cooperation will be most needed for the state budget, perhaps the biggest challenge facing our state.

Some recent estimates have shown that state tax revenues will be sharply lower this year, perhaps leaving state budget writers with a gap somewhere north of $300 million.

Sound budget decisions should revolve around creating jobs and opportunities for the state's 3 million workers who pay taxes and drive the economy.

Budget makers should continue to develop innovative ideas and support proven programs that are helping Missouri employers create good jobs. We encourage initiatives and programs that enhance entrepreneurial growth by increasing access to crucial seed and early-stage venture capital.

The Grow Me State Initiative creates an angel tax credit program to bridge the gap in equity funding, increases funding for the Missouri Technology Corp., creates a co-investment seed capital fund, and creates a proof of concept-fund program to improve the conversion rate of research and development and innovation into entrepreneurial firms and commercially viable products.

Chief among Missouri's proven economic development plans is the Missouri Quality Jobs Program. It was estimated last year that since the program's creation in 2005, the program has helped create more than 22,000 jobs with above-average wages and health insurance benefits.

The Missouri Chamber also is asking for continued support for Enhanced Enterprise Zones, which help the state attract jobs in targeted industries and create vital business clusters.

The New Market Tax Credit program is also an essential tool that helps funnel job-creating resources into small businesses in low-income communities. In the last six months, this program has seen more than $125 million invested in 35 small companies, retaining or creating 1,700 Missouri jobs.

Quality jobs are of little value without quality workers, as our economic hopes are rooted in having a skilled, highly educated work force. The Missouri METS Coalition is a partnership between business people, educators and state leaders to help improve student achievement in math, engineering, technology and science. In the last two years, state appropriations and donations from businesses have helped bring new technology and hands-on teaching methods to hundreds of Missouri classrooms. We are asking our state budget makers to continue supporting the METS mission and what it means for the work force.

Business leaders also will be closely monitoring how state lawmakers handle Missouri's current unemployment insurance crisis.

Missouri currently has roughly $220 million in its unemployment trust fund, which funds unemployment benefits for out-of-work Missourians. It is projected that the trust fund is facing insolvency, possibly forcing the state to borrow from the federal government. We are looking to Missouri lawmakers to find a unique solution to this problem that does not lay an increased burden on the state's employers.

The General Assembly must also ensure the state's Second Injury Fund remains solvent and able to protect Missouri workers with pre-existing injuries.

The Missouri Chamber is also closely monitoring the state's Supreme Court for a ruling that could negatively impact the state's workers' compensation system. In 2005, the Missouri Chamber was a leading proponent of reforms to the system that helped root out abuse and inefficiencies and reduce insurance costs for employers around the state. A long-pending ruling in the Missouri Supreme Court could nullify part- or all of these hard-fought reforms. If that happens, the Missouri Chamber will make it a top priority to pass new legislation that will continue the protections and reforms brought by the legislation passed in 2005.

The Missouri Chamber will advocate for the review of meaningful health care reforms, including a comprehensive health insurance initiative. We also would push for review of unnecessary current regulatory and legislative burdens so that we do not continue to create government-controlled programs that shift costs of the uninsured disproportionately to employers already providing coverage.

We support the development of public/private health care partnerships between providers, insurers, government and employers to demonstrate innovative ways to help employers provide incentives for wellness and maintain health care benefits for employees.

Reliable power is a basic element of our economic system, and the Missouri Chamber will support ideas to increase our capacity in an affordable, feasible and clean manner that relies on proven methods of production.

We recognize that in economic times like those we now face, some leaders will have to fight the natural reflex to hold back and wait for better days to come.

The Missouri Chamber believes that we should continue our state's aggressive work to build our economy. Although it will take strong leadership, these decisions will allow our state to emerge from these difficult days in a strong position for the future.

Daniel P. Mehan is the president / CEO of the Missouri Chamber of Commerce and Industry in Jefferson City. He may be reached at www.mochamber.com.[[In-content Ad]]