Small-business concerns make state capitol talk

State Reps. Bob Dixon and Shane Schoeller, both Greene County Republicans, presented their take on the legislative session March 19, during the Springfield Area Chamber of Commerce Government Affairs Committee’s Small Business Legislative Briefing.

HB 2058: Economic package

Schoeller spoke about House Bill 2058, a two-pronged economic development package.

First, the bill would increase funding caps for four business incentive programs:

• Quality Jobs Act to $60 million from $40 million;

• Enhanced Enterprise Zone to $24 million from $14 million;

• Neighborhood Assistance Program to $6 million from $4 million; and

• Small Business Incubators Program to $2 million from $500,000.

“The viewpoint on the (economic development) committee has been that we really shouldn’t cap the tax credits for those programs at all, because they’ve been so successful,” Schoeller said. “But each year we do, so each year we have to come back and increase that cap because it’s maxed out.”

Second, the economic development bill would create a tax credit program for so-called “angel investments” – equity investment in technology-based early-stage Missouri companies. According to the bill, investors who contribute the first $500,000 in equity investment to a qualified Missouri business would receive a 30 percent tax credit, or 40 percent, if the business is in a rural area.

Meeting attendee Mike Peters, executive director of St. John’s Foundation for Community Health, said the program could provide an incentive for private businesses to invest in projects such as Jordan Valley Innovation Center. St. John’s is one of the companies using the facility for research.

“When you’re doing research and development, some of it can be fairly inexpensive and some of it can be very expensive,” Peters said. “So you always look at ways to attract dollars to help fund that research.”

HB 2058 awaits hearing by the full House.

Insure Missouri

Schoeller and Dixon also addressed Insure Missouri, Gov. Matt Blunt’s plan to provide health insurance for working adults who aren’t insured through their employer.

Dixon said the bill, which awaits assignment to a House committee, is only available to workers who can’t obtain insurance through other means, in an effort to prevent people from joining the state insurance program simply because it’s cheaper than insurance provided by their employer.

Peters said hospitals generally are in favor of the Insure Missouri proposal. He noted that hospitals’ self-imposed Federal Reimbursement Act tax, which the state uses to attract matching federal money through the Medicaid program, also could be used to fund Insure Missouri under the current proposal.

“This is an idea we’ve really been in favor of, and anything that can push this product forward is positive,” Peters said.

Budget issues

Dixon, who sits on the House Fiscal Review Committee, talked about the state’s proposed 2008–09 budget, which is scheduled for a hearing on the floor March 25.

While several higher education issues would receive more funding under the budget proposal – including a 4.2 percent core increase for Missouri State University and Ozarks Technical Community College – Dixon expressed concern about one currently unfunded program: the Preparing to Care Initiative. The program would provide annual funding for colleges to increase the number of trained health care workers.