Guest Column: At session’s midpoint, economic development legislation stuck in limbo

When the legislature convened in January, the 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 economy here and around the nation has 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, home buying and new 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 startup companies.

The House of Representatives passed House Bill 191 in the first week of February, and it was approved by a Senate committee the following week. Since then, it has not managed to come to a vote on the Senate floor due to a debate regarding tax credit reform. Given that this bill contains provisions that are important to Missouri eventually emerging from the recession, we urge Missouri Senators to reach a compromise soon.

Activity in Washington D.C. has also had a large impact on Jefferson City this session. With billions of dollars in stimulus funding headed to Missouri, state lawmakers have had to work to be sure they understand what strings are attached to the money before it is appropriated. While the stimulus funding presents many great opportunities for Missouri – particularly in transportation – 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 of Commerce and Industry, 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 from the stimulus.

With the state’s unemployment compensation fund already expected to go perhaps $1 billion in the red during this economic recession, and with the Missouri Chamber and others actively looking for a solution to the problem, now is not the time to expand benefits at the cost of the state’s employers, some of whom are already struggling.

The Missouri Chamber and state legislators are also 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 traditional secret ballot union process in favor of a “card check” process that would open employees up to greater intimidation by union officials. We are urging state lawmakers to send a message to Washington D.C. that Missourians are against this idea.

House Joint Resolution 37, sponsored by Rep. Mike Cunningham, (R.-Rogersville), seeks to put the issue before the voters of Missouri in November 2010 to determine if the state constitution should be amended to guarantee secret ballot voting for workers who are considering unionization. Changes to the state constitution can only be voted on during general elections unless a special election is called by the governor. November 2010 likely would be the earliest opportunity to get this issue on the Missouri ballot.
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.

Moving our state forward during this economy will take strong leadership. But these decisions will allow us to emerge from these difficult days in a strong position to grow and prosper into the future.