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Above: Kevin Cahill, vice chair of Government Affairs at the RCGA, Public Affairs director at Solutia Inc.
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Passed and Signed
The RCGA continues its Public Policy momentum in 1999; scores major victories in both Missouri and Illinois General Assemblies.
By Kevin Cahill
The RCGA Government Affairs team was extremely successful in the enactment of major legislation in both the Missouri and Illinois General Assemblies. Legislation concerning economic development, technology, transportation and the environment all passed and was signed by the Governors of each state. Again, the 1999 Legislative Program was developed by the Public Policy Council — which begins with a daylong hearing for all RCGA members and ends with ratification from the Board of Directors.
Missouri
- General Business Tax Relief — RCGA supported legislation that reduces the tax burden on the business community. For example, employers pay 25 percent of all State taxes, yet receive only 12 percent of Hancock refunds and have received less than 10 percent of recent tax cuts. The RCGA, along with its coalition partners, advocated an amendment that raises the minimum threshold of the corporate franchise tax to $1 million in assets from $200,000. In addition to the threshold, the corporate franchise tax rate will be cut by one-third, totaling $34 million in annual tax savings for Missouri businesses.
- Seed Capital — There is a severe lack of available start-up, early stage capital for entrepreneurs in the State of Missouri. The General Assembly passed legislation providing $20 million in StateTax Credits for individuals and corporations that invest in a Seed Capital fund to provide initial capital for smaller, start-up companies. Gov. Mel Carnahan played a key role in the passage of this measure.
- Market-Rate Housing — This legislation authorizes $16 million in State Tax Credits per year against the costs of new construction or the rehabilitation of market rate housing in older neighborhoods. This was also a major priority of St. Louis County Executive Buzz Westfall.
- Groundwater Remediation — This new legislation grants the Department of Natural Resources (DNR) discretion relative to the remediation level of ground-water necessary to redevelop an industrial site. With the large number of idle industrial sites throughout the region, the current inflexibility of the existing standard serves as an economic disincentive to redevelop those sites.
- Transportation Sales Tax for St. Louis City and County — The General Assembly passed legislation that continues the half-cent sales tax and its extension for another two years. This revenue accounts for 60 percent of the Bi-State Development Agency’s budget and is used to enhance the City and County’s transportation systems, including roads and transit.
- Regional Parks District — This legislation allows for the establishment of a Regional Parks, Greenway and Trail System district. This district would feature world-class connecting greenways—with pathways for biking, walking and other activities. The system would connect existing parks and communities and could serve to enhance existing parks. The RCGA actively supported this major initiative of St. Louis 2004.
Illinois
- Illinois FIRST, a Fund for Infrastructure, Roads, Schools, and Transit — Illinois FIRST is Gov. George Ryan’s five-year $12 billion, comprehensive infrastructure improvement plan to address Illinois’ aging and deteriorating roads and bridges, unfunded highway construction projects, neglected mass transit systems and school construction and repair. The program also funds the clean up of brownfields, upgrades for sewer systems and other quality of life projects throughout Illinois. More than $1 billion is committed to the Metro-East Area projects inclusively: $1.5 million for Military Affairs; $1.04 million for payment of principal and interest on bonds issued on behalf of Laclede Steel; $4 million for East St. Louis Housing Project; $30.7 million for New Mississippi Bridge; $29.7 million for six lane construction of I-64; $13.9 million for IL Route 3 Relocation; $230.2 million for Alton by-pass Connection (I-255); $18.4 million for widening and adding additional lanes on IL 157; $45.6 million for development of a multi-lane highway on IL 159; $80.8 million for Corridor I-67 construction; $15.6 million for Metro-East Public Transportation; and $60 million for MetroLink extension.
- Economic Development for a Growing Economy (EDGE) Tax Credit — Legislation was passed to create the Economic Development for a Growing Economy (EDGE) Tax Credit Act. It provides that the Department of Commerce and Community Affairs (DCCA), in cooperation with the Department of Revenue, shall grant tax credits against Illinois income tax liability to applicants creating new jobs in Illinois if the applicant’s project creates new jobs and meets certain criteria.
- Bi-State’s Quick Take Authority — Included in the Illinois FIRST proposal is $60 million for the extension of MetroLink in St. Clair County to MidAmerica Airport. When the final construction is complete this line will be the only line in the country that will connect two airports, MidAmerica and Lambert–St. Louis International, via light rail transit. Bi-State Development Authority, which operates the MetroLink quick take authority was due to expire in January 2000. Legislation was drafted extending Bi-State’s quick take authority until January 2001. With this change Bi-State should be able to acquire the land needed to complete this project.
- MidAmerica Airport Enterprise Zone —This legislation provides Southwestern Illinois Development Authority (SWIDA) the authority to designate a portion of the territorial jurisdiction in and around MidAmerica Airport as an Enterprise Zone under the Illinois Enterprise Zone Act. The creation of an enterprise zone will greatly enhance the marketability of MidAmerica Airport. This will supply local and state economic development agencies the tools they need to make this airport ready to meet the transportation needs of the new millennium, including fulfilling its unique potential as a cargo hub.
Federal
- Research and Development Funding — Under the leadership of Sen. Kit Bond, Congress and the Administration fully funded key entities for research and development: the National Institute of Health (NIH), the National Aeronautics and Space Administration (NASA), and the National Science Foundation (NSF). This funding will allow our region’s businesses and universities to continue our long-term goal of developing cutting-edge research and the technology of the future.
- Empowerment Zone Funding — Earlier this year, the federal government designated part of the St. Louis region as a federal empowerment zone (City of St. Louis, East St. Louis and parts of St. Louis County), which allows these areas to qualify for certain funds for economic development. This year the Empowerment Zone will receive $3.6 million in federal funds for economic development projects.
- Health Care Deductibility for Self-Employed — This legislation accelerates the phasing in of 100-percent Federal Tax Deductibility of health care premiums for the self-employed. This has been a St. Louis RCGA priority for a number of years.
The government affairs initiatives of the RCGA are member oriented and volunteer driven. The public policy council is the volunteer leadership group whose mission is to review, analyze and make recommendations to the RCGA board of directors on governmental and public policy issues that affect the economic development of the region. The RCGA annually develops a comprehensive legislative program for Missouri, Illinois and federal issues.
State Initiatives
The RCGA provides a full-time presence in Jefferson City and Springfield, Ill. Director of Government Affairs Gordon Reel represents the interests of RCGA members and the St. Louis region in the Missouri General Assembly. Director of Government Affairs John Valenti represents the region in the Illinois General Assembly.
Federal Initiatives
In addition to the RCGA’s involvement with members of the region’s congressional delegation on issues of regional significance, the RCGA holds several events to involve its members and provide networking opportunities with federal elected officials.
Each year, some 100 local business, civic and government leaders fly to Washington, D.C., for a day-long session with key members of Congress and the White House on issues of concern to the St. Louis region.
Legislative Publications
Each year, the RCGA prints two publications:
The Legislative Guide outlines the legislative program of the RCGA for Missouri, Illinois and the Federal governments as well as lists the regional Federal legislators and all State legislators and officials.
Echoes from the Halls is a newsletter that highlights the region’s legislative successes and tallies the regional legislators on how they voted on RCGA-supported priorities. Both publications are available to all RCGA members.
For Missouri call Gordon Reel 314/444-1107
For Illinois call John Valenti 314/444-1108
For Federal call Jim Farrell 314/444-1191
For copies call Denise Hasty 314/444-1134
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