Nixon’s job plan gets positive reviews

Gov. Jay Nixon’s first task as Missouri’s chief executive is perhaps his greatest challenge: dealing with the state’s languishing economy.

Nixon, who was sworn in as the state’s 55th governor on Jan. 12, focused his first press conference on three executive orders aimed at streamlining an economic development proposal. Nixon unveiled the plan-dubbed Show Me JOBS-in December.

Nixon’s plan includes:

• Expansion of the Missouri Quality Jobs Program, which started in 2005 and provides tax credits to companies in targeted industries that plan to provide, within two years, a certain number of new jobs with above-average wages.
• Development of a program for providing small businesses with low-interest loans through the Missouri Development Finance Board. Funding would stem from a 4 percent fee garnered through MDFB tax credits.
• Creation of tax credits for businesses to offset some pre-employment costs. Nixon’s office said an example of such training would be tuition at a community college or vocational school.
• Establishment of a task force focusing on ways to jump-start the state’s automotive industry.
• Coordination of state activity with federal officials involved in choosing projects for any stimulus package that Congress passes.

In his initial press conference, Nixon signed three executive orders meant to dovetail with his economic development plan. Two of the orders established governor-appointed boards that will examine the auto industry and coordinate funds derived from the federal stimulus plan.

The third order directed the Department of Economic Development to work with the Missouri Development Finance Board to create a roughly $2 million pool of loans for small businesses. Nixon said the money would provide around $25,000 worth of low- and no-interest direct loans to roughly 80 businesses.

“We’ll provide these loans on a revolving basis to provide the greatest possible impact,” Nixon said. “The young entrepreneurs who met with me yesterday… the No. 1 challenge they indicated was access to capital.”

Nixon was referring to a group of business owners whom he met with almost immediately after his swearing-in to talk about his economic development plan.

When Nixon introduced his plan in December, it received praise from House Speaker Ron Richard, R-Joplin, and Senate President Pro Tem Charlie Shields, R-St. Joseph. It also garnered positive sentiments from the Missouri Chamber of Commerce, an organization that endorsed former U.S. Rep. Kenny Hulshof’s gubernatorial bid.

Earlier this month though, Richard expressed concerns that the funding source for Nixon’s loan proposal is currently being used for the DREAM Initiative. That program provides assistance to smaller communities to refurbish downtowns.

“I’ll see what happens,” Richard said. “I’ll give him his dues. … Gov. Blunt tried the (DREAM Initiative). It worked out pretty well. We’ll see.”

A Nixon spokesman told the Associated Press that he believes there was enough funding for both programs to coexist. State Sen. Kurt Schaefer, R-Columbia, said it isn’t clear yet how much the DREAM Initiative would be affected by Nixon’s proposal.

“I think the DREAM Initiative has been very successful, and I think those communities that have been a part of it have been very satisfied with it,” Schaefer said.

“I haven’t seen any details from him on whether or not they eviscerate DREAM and pull it out and put it into something else.”

Several Columbia-area state representatives said they were initially pleased with Nixon’s plan. But state Rep. Chris Kelly, D-Columbia, said he wants to see more concrete details on the initiative.

“We need more detail, but I think his small business initiative is excellent,” Kelly said, referring to the loan proposal. “The most important thing for me on the economic development picture is, I want to know who’s going to go to work doing what. And it’s early in the session, but that’s what we’ve got to find.”

Rep. Steve Hobbs, R-Mexico, noted that elements of the plan were “Republican ideas,” adding he didn’t have a problem with any portion of the economic package. But he shared Richard’s concerns about funds being taken away from the DREAM Initiative.

“That’s been extremely successful,” Hobbs said. “I think that the [loan idea] has merit. The devil’s in the details about who decides and who qualifies and how it all works. But I’m ready and willing to help work with that.”

While still needing to examine the details of the proposal, Rep. Stephen Webber, D-Columbia, said Nixon was smart to start his tenure as governor focusing on the issue of economic development: “Hopefully, the House can work together to make it happen.”

Several Columbia-area state representatives said they were initially pleased with Nixon’s plan. But state Rep. Chris Kelly, D-Columbia, said he wants to see more concrete details on the initiative.

“We need more detail, but I think his small-business initiative is excellent,” Kelly said, referring to the loan proposal. “The most important thing for me on the economic development picture is, I want to know who’s going to go to work doing what.”

Rep. Steve Hobbs, R-Mexico, noted that elements of the plan were “Republican ideas,” adding that he didn’t have a problem with any portion of the economic package. But he shared Richard’s concerns about funds being taken away from the DREAM Initiative.

“That’s been extremely successful,” Hobbs said. “I think that the (loan idea) has merit. The devil’s in the details about who decides and who qualifies and how it all works.”

Although still needing to examine the details of the proposal, Rep. Stephen Webber, D-Columbia, said Nixon was smart to start his tenure focusing on the issue of economic development: “Hopefully, the House can work together to make it happen.”