Key business issues waiting for state, national legislators

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Missouri, like many states across the country, is feeling the heat of a budget crisis, And the new, Republican-led legislature has the daunting task of getting the fire under control.|ret||ret||tab|

Other areas of concern continually rising health insurance costs, unemployment and workers' compensation reform, and a lethargic state economy will challenge the largely freshman legislature when it convenes in January. |ret||ret||tab|

But small-business leaders and those who represent them are hopeful that the combination of new blood and experienced legislators under Republican leadership will bring good things.|ret||ret||tab|

"I perceive a more pro-small-business, friendly legislature," said Brad Jones, director of the National Federation of Independent Business/Missouri in Jefferson City. "The people that will be in charge have had stellar small-business voting records in the past."|ret||ret||tab|

NFIB/Missouri represents and lobbies for 13,000 small businesses in the state, 787 of which are in Greene County. Nationally, the organization has 600,000 members.|ret||ret||tab|

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Workers' compensation|ret||ret||tab|

Recently nominated Missouri Speaker of the House Rep. Catherine Hanaway, R-St. Louis County, is focusing on job creation and retention after the state lost 61,000 jobs in the 12 months ended in September. Some of those job losses, she said, stem from high workers' compensation premiums in Missouri.|ret||ret||tab|

"It's cheaper to do business in surrounding states under their regulatory schemes than it is to do business in Missouri," Hanaway said.|ret||ret||tab|

A case in point is Contract Freighters Inc. in Joplin, which could save $2,000 a year per employee in workers' comp costs by moving across the border to Oklahoma, Hanaway said.|ret||ret||tab|

One solution, for starters, is to change the wording of the law from one's job being "a" contributing factor in an injury to "the" contributing factor. Hanaway said that would limit the number of claims made.|ret||ret||tab|

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Economic stimulus|ret||ret||tab|

The Missouri Banker's Association is lobbying for a larger amount of state government money to be invested in Missouri banks.|ret||ret||tab|

According to Larry Krummen, director of investments for the Office of the Missouri State Treasurer, 11.3 percent or $328.8 million of the state's $3 billion portfolio is invested in Missouri financial institutions. |ret||ret||tab|

UMB Bank's Bill Owen, who chairs MBA's government relations committee, said moving additional funds in-state could help boost the economy.|ret||ret||tab|

"Myself and a lot of other bankers around the state are very concerned on what the economic impact is by not having these funds available to lend out to customers," he said. "Is it in the state's best interest to have this money sitting in money market funds on Wall Street, or in financial institutions in the state of Missouri where the money could then be lent out to Missouri businesses and Missouri individuals? That's money that could help fuel this economic rebound that we're wanting to see in the state." |ret||ret||tab|

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Budget priority|ret||ret||tab|

The overriding legislative priority seems to be the budget, which has been cut by $750 million in each of the last two budget sessions.|ret||ret||tab|

Missouri Gov. Bob Holden and Director of Revenue Carol Russell Fischer are hoping to shore up the budget picture by eliminating some tax loopholes in the state's tax structure.|ret||ret||tab|

In a recent visit to Springfield Business Journal's offices, Fischer outlined the four targeted loopholes: minimizing tax breaks on the purchase of yachts; cutting benefits for companies banking out of state; stopping refunds to purchasers when businesses overcharge them on sales tax; and forcing Internet and franchise businesses to pay state corporate taxes. |ret||ret||tab|

The way the law is written now, Fischer said, dot-com companies avoid state sales taxes because they have no physical presence.|ret||ret||tab|

"They are taking advantage," she said, because "the laws have not kept pace."|ret||ret||tab|

But some business owners say eliminating what the government has deemed tax loopholes would just raise taxes for them.|ret||ret||tab|

"I don't think any of our members feel that they are under taxed," said Jones. "That will be a concern of ours as they go through the budget process. The small business sector certainly doesn't need to pay any more than its share of taxes and believe me, they're paying it now."|ret||ret||tab|

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Health care|ret||ret||tab|

On the national level, Missouri businesses could benefit from Jim Talent's (R-Missouri) U.S. Senate seat, Jones said, because of Talent's position on association health plans.|ret||ret||tab|

Small-business owners are seeking group coverage through a larger coalition, such as NFIB, U.S. Chamber of Commerce or national trade associations. A national pool of businesses would allow small businesses to get health insurance under the same rules as Fortune 500 companies, Talent said, ultimately reducing rates by 15 percent to 20 percent.|ret||ret||tab|

Scott George, a small-business owner from Mt. Vernon, saw health insurance rates for his employees go up 40 percent, or $57,000, last year. George, general manager of Mid-America Dental & Hearing Center, said those increases have to be passed on to the patients at his center. |ret||ret||tab|

"Small business is basically being discriminated against when it comes to providing health care insurance to their employees. We are not allowed to band together to get better rates," George said. "We have no choice but to raise fees on our patients."|ret||ret||tab|

For cases such as this, Talent vows to get the bill through the Senate, where it has died the past two years.|ret||ret||tab|

"Small business is the heart of opportunity in the country," Talent said. "I'm going to pass that thing or die trying."|ret||ret||tab|

Should it pass in the Senate, it would go to the President's desk. Talent said Bush is a strong supporter and would sign the bill.|ret||ret||tab|

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