WHAT'S What 2003 Missouri Legislative Program (*Supported by the RCGA in 2002) PRESERVING ECONOMIC DEVELOPMENT TAX CREDITS* With another tight budget looming for FY 2004, the cost-effectiveness of economic tax credits will be critically reviewed. Many of the state tax credit programs, like historical tax credits and distressed communities tax credits, are vital to the revitalization of our central core. The Missouri BUILD program and venture capital tax credits are needed incentives to expand existing companies and attract new companies to our region. Tax credits generate multi-millions of private sector investment dollars that would not have occurred without the public subsidy stimulus. Support the preservation of tax credits that serve to stimulate economic growth for our region and State. Oppose reductions or limitations to tax credit programs. Support the re-authorization of the Missouri BUILD program. Support flexibility of tax credit programs for their use in job retention activities. SPORT FACILITIES* Long recognized as the top sports city in America, St. Louisans are nationally known for their passionate support of their sports teams. Sports teams generate significant economic activity for our region by attracting fans that spend money at restaurants, hotels, and businesses inside and near the sports arenas. Support the concept of an appropriate level of re-investment of the state sales taxes generated at publicly-owned major Missouri professional sports facilities for the development, expansion, refurbishment and/or maintenance of such facilities as a means to stimulate continued and enhanced economic development in the state and local community. ENVIRONMENTAL GOVERNANCE There is a lack of independence and a lack of checks and balances between the citizen environmental commissions and the staffs of the Missouri Department of Natural Resources (DNR) or the Office of the Attorney General (AG), because these agencies provide both the technical and legal support to the commissions. These two agencies are directly involved in the making of environmental rules (interpretation of statutory authority), rule enforcement, and adjudication of any appeals of the rules. The current system results in a lack of consistency, predictability and transparency in the application and administration of environmental regulations. These conditions contribute to an atmosphere of uncertainty, translating into apprehension about doing business in the state of Missouri. A new, independent environmental commission structure can better accommodate economic development without compromising environmental protection. Support a change in the governance structure at the Missouri Department of Resources. Support a streamlined environmental regulatory process with fewer oversight commissions. INCREASED REGIONAL TRANSPORTATION FUNDING* Without increased transportation funding, economic growth in our region will be stifled. The voters’ rejection of the transportation-funding referendum, Proposition B, will postpone critical regional improvements to our roads, bridges, and transit system. With the current environment where increased transportation funding is unlikely, it is essential that St. Louis receive its fair share of funding. Support principles of equity by which the St. Louis region would receive 33% of new State highway revenue, 50% of State transit revenues. Support MODOT’s takeover of maintenance of the State arterial roads in the City of St Louis. Support Regional Transportation Development District legislation to enable locally generated revenue for transportation projects. STATE APPROPRIATION FOR PUBLIC TRANSIT* Stable funding for the region’s transit system is essential for long-range service and capital planning. For the last several years, The Missouri Legislature has appropriated $4 million to the Bi-State Development Agency for transit. Missouri continues to underfund transit statewide, which has forced severe budget cuts and local revenue tax hikes to support transit operations in Missouri’s metropolitan areas. Support increased funding for transit statewide. Support increased appropriations for the Bi-State Development Agency. BROADBAND SERVICES The availability of broadband services is a very important decision factor for business choosing to locate or expand in a region. High-speed telecommunications is essential to business productivity and operations. Currently, regulations on broadband services are placed on the type of technology rather than the type of service, thereby, inhibiting investment and competition. Support policies that encourage investment in technology infrastructure. Support policies that establish equal regulatory treatment of all providers of broadband and advanced services in order to enhance infrastructure investment and maximize consumer benefits from competition. TRAUMA CENTERS Trauma is the leading cause of death among Missourians under 35 years old, and among children it claims more lives than all other diseases combined. Trauma centers and their life-saving services are vital to the health of a community, but the high cost of maintaining trauma services and insufficient reimbursement can place an enormous financial burden on a hospital. The total cost of unreimbursed hospital care at Missouri’s major trauma centers exceeds $44 million a year. Since 1999, two St. Louis-area trauma centers have closed, while 10 centers remain open. Proposition A would have raised $35 million for trauma services from an increase in the cigarette tax, but its failure leaves the State’s trauma network without a long-term funding source. Pursue additional funding for trauma centers to maintain high-quality health care services for the St. Louis community. PLANT/LIFE SCIENCES* The St. Louis region is a world-class leader in plant and life sciences research. The State of Missouri should play a crucial role in translating this research base into a thriving business sector by investing in public resources to leverage significant private investment. Support programs and policies that further development of wet lab space and incubators. Support programs and polices that grow venture capital funds and support commercialization efforts (“pre-incubator” stage). Support programs that encourage university/business collaboration and that strengthen the workforce for the industry. TOBACCO SETTLEMENT* Due to the budget crisis in the last two fiscal years, no tobacco settlement dollars have funded plant and life science research. Attempts to permanently dedicate the tobacco settlement funds have failed, although an executive order established a life sciences fund to receive dedicated funds. The securitization of the tobacco settlement proceeds will provide the State with a one-time inflow of funds that could be directed toward plant and life sciences research. Support an allocation of the tobacco settlement dollars to increase plant and life sciences research capacity. RESEARCH & DEVELOPMENT TAX CREDIT* As the St. Louis region and the State of Missouri continue to support emerging technology companies, these companies will continue to need funding to conduct research and development. Many of the research and development tax credits are exhausted or are used by larger, well-established companies. Support an increase in the State’s Research and Development Fund. Provide for a higher tax credit for smaller companies located in distressed communities. SEED CAPITAL TAX CREDIT* Since 1999, the Seed Capital Tax Credit, which encourages investment into small, emerging businesses located in distressed communities, has been exhausted. The Center for Emerging Technology in St. Louis and other Innovation Centers around Missouri play a crucial role in deciding which companies receive investments under the tax credit program and who should share in an equity interest and profit. Support legislation that authorizes the State to issue $5 million per year and a 60% tax credit to those who invest in qualified emerging companies that are located in distressed communities. Support increased funding for the Innovation Center. CAPITAL TAX CREDIT* The State Capital Tax Credit has been a very successful program in leveraging smaller, individual investors into emerging companies. However, the program fund has been exhausted since 1999. Furthermore, the program is relegated to companies whose principal owners have at least 50% ownership in the company. With the resources and capital that is required to start companies today-especially in the high-tech field-50% ownership of a company is rare. Support legislation that authorizes the State to issue $6 million a year for Capital Tax Credits for those who invest in qualified, emerging companies. Reduce the ownership requirement to 20%. HIGHER EDUCATION AND WORKFORCE DEVELOPMENT* The growth and productivity of Missouri’s and the St. Louis region’s economy are greatly dependent upon the skills and qualifications of its citizens. Our region’s workers must be properly prepared to meet technological and educational requirements if they are to succeed in a competitive global market. Support increased funding for Missouri New Jobs Training Program ($16 million in FY 2003) to enhance programs by community colleges to provide training for new and expanding businesses. Support collaborative partnerships with schools, businesses and community colleges to enhance and improve educational opportunities for all students. Support increased funding for workforce training and skills development with special emphasis on manufacturing and life sciences. UNIVERSITY OF MISSOURI-ST. LOUIS (UMSL)* The strength of the University of Missouri- St. Louis affects the strength of the workforce development in our region. For the last several years, state appropriation to UMSL has not been commensurate with the number of students it educates. Upgrading facilities and programs at UMSL is critical for our region’s capabilities in science and technology and the job opportunities in the new economy. Support increased funding for UMSL to more closely equal UMSL’s percentage of students served in the entire University of Missouri system. Support funding for the continued implementation of the campus master plan, which includes planning, construction, and renovation of new and existing infrastructure. Support renovation appropriations for teaching and research laboratory space at the UMSL Science complex. HARRIS-STOWE STATE COLLEGE* Harris-Stowe is the only Historically Black College in the region, and has a 100-plus year history of preparing our nation’s teachers. In 1993, the College was authorized to expand its mission to address the higher education needs of metropolitan St. Louis in key applied professional disciplines. In order to fulfill this expanded mission, a campus expansion plan is underway at the college. Support funding for the completion of the buildings and infrastructure outlined in the Harris-Stowe Campus Expansion Master Plan. COMMUNITY COLLEGES* Our region’s community colleges enhance the educational opportunities and provide a vital role in the education and skill development of our region’s workforce. Community colleges also provide substantial economic benefits to our region, returning $7 of economic activity for each tax dollar invested. Support efforts to reach full funding for community colleges. Support capital funding for maintenance and repair of buildings and equipment, with emphasis. Support funding for life sciences initiatives at community colleges that encourage training, job development and research. "HOLD HARMLESS" SCHOOL DISTRICTS* In 1993, the Missouri Legislature changed the State School Funding Formula at the request of a Cole County Circuit Judge. When the formula was modified, a number of school districts (most of which are in the St. Louis region) had their state allocation frozen; thus receiving neither less money under the new formula, nor receiving any additional money. Although state funding has remained at 1992 levels, the costs of operating a school district have risen. Support increased funding for “Hold Harmless” school districts. Support a new foundation formula that will not result in reduced revenue for any district and that will be more equitable to metropolitan districts. A new formula must recognize regional cost factors and the unique needs of students and communities throughout the state. DOWNTOWN REVITALIZATION* Last year the Missouri Downtown Economic Stimulus Act (MODESA) was introduced as a new tool for municipalities to stimulate economic development in their downtowns. Under the bill, revenue generated from the new jobs and economic activity created by the development could be captured and recycled to pay for infrastructure improvements. The revenue could be used to expand or attract business or to improve cultural, tourism, or research facilities. The bill did not require any new tax or existing state revenues. Support legislation that assists in the revitalization of downtowns. Support legislation that encourages the reuse and revival of abandoned or underutilized properties. HISTORIC TAX CREDITS* Historic tax credits greatly assist and leverage private investment in the rebuilding and renovation of historic properties. Without historic tax credits, Cupples Station, the Convention Center hotels, the Chase Park Plaza, the City Museum, and Washington Avenue Loft District would not have been brought back to life. Historic tax credits help to rebuild neighborhoods and towns across the region and the State of Missouri. Tax credits generate $4 invested for every $1 of tax credit. Support the continuation of Missouri’s historic tax credit program. Oppose efforts to cap or reduce the historic tax credit. Maintain the transferability of the tax credit. BROWNFIELD REDELOPMENT GRANT PROGRAM FUNDING* Brownfield sites are idle or abandoned industrial sites that remain undeveloped due to known or perceived environmental contamination. Redevelopment and reuse of these properties is inhibited by four factors: uncertain liabilities, unrealistic cleanup standards, lack of financing, and the uncertain regulatory process. Support an increase in the appropriation to the Brownfield Property Reuse Fund. CONTIGUOUS PROPERTY REDEVELOPMENT FUNDING* As part of the brownfield redevelopment legislation passed by the Missouri Legislature in 2001, a contiguous property redevelopment fund was established. The Contiguous Property Redevelopment Fund will provide grants to cities and counties to assist in acquiring multiple contiguous properties for redevelopment into a private enterprise. This fund is not currently funded. Once funded, this fund will greatly enhance large-scale development in distressed areas of the St. Louis region. Support an appropriation to the Contiguous Property Redevelopment Fund to provide money for cities and counties to acquire multiple contiguous properties. Support legislation that will help in the land assembly process. CERTIFICATE OF NEED* The majority of residents in our community receive health insurance through their employer; therefore, businesses have a strong interest in controlling the health care costs. The proliferation of excess medical capacity can increase health insurance premium costs to employers. The Certificate of Need regulations contain health care costs by providing oversight of unnecessary medical capital expenditures. The certificate of need regulations expired in December 2001. Support changes to the Certificate of Need regulations that would simplify the law and allow the process to be less bureaucratic and costly. Support changes in the Certificate of Need regulations to ensure a level playing field between hospitals and specialty providers. WORKERS' COMPENSATION* Support appropriate changes in the Workers’ Compensation law to encourage economic development and provide more job opportunities in Missouri. STATE EARNED INCOME TAX CREDIT* Support a State Earned Income Tax Credit, which would complement the Federal Earned Income Tax Credit and allow lower-income people to keep more of their earnings. TRIAL VENUES* Support legislation allowing defendants in lawsuits to have a discretionary, one-time right to change the venue for the trial of matters filed against them. CERTIFICATE OF MERIT* Support legislation providing that all lawsuits against licensed professionals must have merit before they are filed. STATUTE OF REPOSE* Support legislation to clarify language of “substantial completion” and add “economic loss” to the 10-year Statute of Repose. ADMINISTRATIVE HEARING REPRESENTATION* Support legislation to allow an individual taxpayer or small business to have the option of representing their business without an attorney before the Administrative Hearing Commission.

January 2003 - - - - - - - - - - - - - - - - - - www.stlrcga.org - - - - - - - - - - - - - - - - - - www.technologygateway.org - - - - - - - - - - - - - - - - - -