Daniel P. Mehan
When the legislature convened in January, Missouri Chamber of Commerce and Industry asked the state's lawmakers to view the current economy as an opportunity to lay the foundation for a robust recovery.
Since that time, the state and national economies have only worsened. Each week has brought news of additional layoffs and more businesses facing difficulties not seen in decades.
A darkening economy can be paralyzing for important economic activities such as consumer spending, homebuying and job creation. However, it should not be paralyzing for the lawmaking process as it concerns economic development programs.
One of the most important bills in the legislature is currently stopped in its tracks in the Senate. House Bill 191, sponsored by Rep. Tim Flook, R-Liberty, contains many important economic development provisions such as expanding the Quality Jobs Program, bolstering the New Markets Tax Credit and helping grow angel investments for startups.
The House of Representatives passed House Bill 191 in the first week of February, and it had been approved by a Senate committee the following week. Since then, it has not been able to come to a vote on the Senate floor due to a debate regarding tax credit reform. Given that this bill contains such important provisions that will help Missouri emerge from the recession, we urge Missouri senators to reach a compromise soon.
Activity in Washington, D.C., has had a large impact on Jefferson City this session. With billions in stimulus funding headed to Missouri, state lawmakers have had to ensure they understand what strings are attached to the money before it is appropriated.
While the stimulus funding presents many great opportunities for Missouri, (see SBJ's cover story this week), state leaders need to make sure they are not endangering future budgets for a short-lived influx of cash.
Still up in the air in Missouri is whether the state will accept additional stimulus funds that were part of President Obama's stimulus package. The Missouri chamber, the Missouri State Unemployment Council and several legislative leaders came out earlier this month recommending Missouri forgo these dollars. The additional benefits tied to the stimulus funds could end up costing Missouri employers far more than the $133.4 million the state would receive.
With the state's unemployment compensation fund possibly going $1 billion in the red during this economic recession, and with the Missouri chamber and others actively seeking a solution to the problem, now is not the time to expand benefits at the cost of the state's already-struggling employers.
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The Missouri chamber and state legislators also are closely following federal legislation introduced this week that would change the unionization process. The Missouri chamber opposes federal changes that would do away with the secret ballot union process in favor of a "card check" process that would open up employees to greater intimidation by union officials.
House Joint Resolution 37, sponsored by Rogersville Republican Rep. Mike Cunningham, seeks to put the issue before Missouri voters in November 2010 to determine if the state constitution should be amended to guarantee secret-ballot voting for workers who are considering unionization.
Senate Concurrent Resolution 24, sponsored by Sen. Brad Lager, R-Savannah, urges Congress to oppose the Employee Free Choice Act. The resolutions have been introduced and await committee hearings. The Missouri chamber strongly supports the resolutions.
There are other pending bills in Jefferson City that the Missouri chamber supports:
• HB 522, sponsored by Rep. Barney Fisher, R-Richards, would change Second Injury Fund eligibility requirements in order to help keep the fund solvent for workers who need this benefit.
• HB 86, filed by Rep. Mike Sutherland, R-Warrenton, would eliminate the franchise tax on small companies with assets of $10 million or less. While the Missouri chamber would like to see the franchise tax eliminated for all Missouri businesses, for small companies this bill would eliminate an unfair double taxation that occurs because Missouri companies are forced to pay both income tax and the franchise tax. The House voted 143-17 to approve the bill.
The natural reaction to a difficult economy is to hold back and save big decisions for better days. But in this time of need, it is essential that our General Assembly goes against the grain and views this as an opportunity to push our economy forward.
Daniel P. Mehan is the president/CEO of the Missouri Chamber of Commerce and Industry in Jefferson City. He may be reached through www.mochamber.com.
