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PRESERVING ECONOMIC DEVELOPMENT TAX CREDITS
With another tight budget looming for FY 2005, the cost-effectiveness
of economic tax credits will be critically reviewed. Many of the
state tax credit programs, like historic preservation tax credits,
brownfield 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 flexibility of tax credit programs
for their use in job retention activities.
ENVIRONMENTAL REGULATIONS
In the 2003 legislative session the RCGA, working in concert with
several statewide business associations, advanced a comprehensive
environmental legislative package that proposed substantial changes
in the operations of the Department of Natural Resources (DNR) as
well as several citizen environmental commissions which oversee
the rulemaking and permitting processes in Missouri. The bills sought
the development of a standardized, publicly accessible “regulatory
impact report” that would require the agency to substantiate, both
technically and economically, its rationale for rules and regulations
promulgated by DNR staff. Further, the legislation sought to mandate
a significant amount of independence of operation between the citizen
commissions and the DNR and Attorney General staff who technically,
legally and clerically support those commissions. Other provisions
of the legislation included the need for an audit privilege for
self-reporting noncompliance, and the use of the state’s Adminis-trative
Hearing Commission to adjudicate appeals of contested permit denials/conditions
brought before the citizens’ commissions.
Support legislation to require DNR to formally substantiate rule-making
efforts. Support reforms to Citizen’s Commission operations. Address
conflict of interest issues between the DNR staff, Commissions and
the Office of the Attorney General. Oppose efforts to sweep environment
funds (including interest on those funds which has been factored
into the program needs calculations) into general revenue. Support
reauthorization of the Waste Tire Fee and the Hazard Waste Fee.
Seek safeguards to assure that program-specific fees are protected
for their intended purpose.
INCREASED REGIONAL TRANSPORTATION FUNDING
Without increased transportation funding, economic growth in our
region will be stifled. When the voters’ rejected the transportation-funding
referendum in 2002, critical regional improvements to our roads,
bridges, and transit system were shelved. Until MoDOT restores its
credibility with the public, increased transportation funding is
unlikely. In this environment, it is essential that the state Highway
and Transportation Commission dedicate to the St. Louis area its
fair share of funding. Last year’s passage of enhanced options for
a Regional Transportation District provides an option for increased
regional funding.
Support principles of equity by which the St. Louis region would
receive 33 percent of new State highway revenue, 50 percent of State
transit revenues. Support MODOT’s takeover of maintenance of the
State arterial roads in the City of St. Louis.
STATE APPROPRIATION FOR PUBLIC TRANSIT
Stable funding for the region’s transit system is essential for
long-range service and capital planning. Missouri continues to underfundtransit
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 Metro.
TELECOMMUNICATION SERVICES
The availability of reliable telecommunications infrastructure and
new generation telecommunications services is a very important decision
factor for business choosing to locate or expand in a region. For
example, high-speed telecommunications is essential to business
productivity and operations.
Support policies that encourage investment in technology infrastructure
and promote customer choice. Support policies that establish equal
regulatory treatment of all providers of telecommunication 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,
and a stable long-term funding source has not been established.
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.
Last year, the Missouri General Assembly created the Life Sciences
Trust Fund which will receive 25 percent of the tobacco settlement
funds, starting in fiscal year 2007. The fund will allocate resources
to build research capacity and to promote life sciences technology
transfer and commercialization.
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. Support
programs that encourage university/business collaboration and strengthen
the workforce for the industry. Oppose attempts to transfer money
from the Life Sciences Trust Fund into general revenue.
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.
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 increased funding for the Innovation Centers. Support
legislation that authorizes the State to issue $5 million per year
and a 60 percent tax credit to those who invest in qualified emerging
companies that are located in distressed communities.
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 percent ownership in the company. With the resources
and capital that is required to start companies today, especially
in the high-tech field, 50 percent ownership of a company is rare.
Support legislation that authorizes the State to issue $6 million
a year for Capital Tax Credits for those who invest in qualified,
emerging companies. Reduce the ownership requirement to 20 percent.
HIGHER EDUCATION AND WORKFORCE DEVELOPMENT
The growth and productivity of the Missouri and the St. Louis regional
economy greatly depends upon the skills and qualifications of its
citizens. Our region’s workers must be properly prepared to meet
technological and educational requirements if they are to succeed
in a competitive global market.
Support increased job training funding to provide training for
new and expanding businesses. Support collaborative partnerships
with schools, community colleges, community-based organizations
and businesses to enhance and improve educational opportunities
for all students. Support increased funding for workforce training
and skills development with special emphasis on advanced manufacturing,
information technology and life sciences.
MISSOURI HIGHER EDUCATION SAVINGS PLAN (MO$T)
Like all states, Missouri offers a 529 higher education savings
plan to encourage savings for postsecondary education. Earnings
in the plan are free from federal and state taxes if used for qualified
higher education expenses, like tuition, fees, room and board, books
or supplies, at any accredited post- secondary institution in the
United States. Additionally, contributions are Missouri state tax
deductible up to $8,000 per taxpayer per year. Missouri residents
who want to take advantage of these tax savings must enroll in the
MO$T plan. The MO$T is currently operated by one fund manager who
offers three investment options. The fund manager’s contract expires
in 2004. The 529 savings plans have become one of the most popular
methods for college savings and Missouri residents should be able
to choose a 529 plan which best suits their needs.
Support competition among 529 higher education savings plans
to allow greater options for Missouri residents. Support the continuation
of the state income tax deduction for participation in the 529 higher
education savings plans. Support initiatives that encourage investment
and improved educational opportunities for low-income Missourians.
UNIVERSITY OF MISSOURI-ST. LOUIS
As a primary provider of the college educated workforce for the
St. Louis region, the strength of the University of Missouri– St.
Louis directly impacts the strength of the regional economy. For
the last several years, state appropriation to UMSL has not been
commensurate with its mission to become a first class teaching and
research institution. Upgrading facilities and programs at UMSL
is critical for our region’s capabilities in science and technology
and for creating the job opportunities in the new economy.
Support increased funding for the University of Missouri–St.
Louis to address the system-wide funding equity issues. Support
funding for the continued implementation of the campus master plan
toward the completion of the Business, Technology and Research Park.
Support appropriations to renovate the teaching and scientific research
laboratory space at Benton and Stadler Hall.
Right: As a primary provider of the college educated
workforce for the St. Louis region, the strength of
the University of Missouri– St. Louis directly impacts
the strength of the regional economy.
Left: Upgrading facilities and programs at
UMSL is critical for our region’s capabilities in
science and technology and for creating the job opportunities
in the new economy. |
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HARRIS-STOWE STATE COLLEGE
Harris Stowe is the only Historically Black College in the region,
and has a 100-plus 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. 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 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.
HISTORIC PRESERVATION 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. A study by RBG & Company demonstrated
a 2:1 return on the state’s investment from the historical tax credit
on major projects in the St. Louis area.
Oppose changes to the Missouri Historic Preservation Tax credit
program. Oppose efforts to cap or reduce the historic tax credit.
Maintain the transferability of the tax credit.
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Without
historic tax credits, the Chase Park Plaza would not
have been brought back to life. |
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BROWNFIELD REDEVELOPMENT 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. Oppose changes to reduce access to brownfield tax credits.
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 in older urban areas.
TORT REFORM
Last session, Gov. Holden vetoed a tort reform bill that would have
substantially reduced employers’ exposure to outrageous liability
settlements. The bill would have provided a single cap on non-economic
damages in medical malpractice cases. A new definition for joint
and several liability would have appropriately allocated each defendant’s
potential liability in a lawsuit. The bill also would have reduced
“venue shopping” a legal tactic that is a barrier for companies
to locate a business in the City of St. Louis. The RCGA will actively
advocate to return a tort reform bill to the Governor’s desk.
Support legislation capping non-economic damages in medical liability
cases. Support changes in the definition of joint and several liability.
Support legislation that limits “venue shopping” by allowing defendants
in lawsuits to have a discretionary, one-time right to change the
venue of a trial.
WORKERS' COMPENSATION
Last year, a major workers’ compensation bill passed the House,
but stalled in the Senate. The bill would have changed the definition
of a workers’ compensation accident to be a specific incident identifiable
by time and place of occurrence. The bill also would have required
that an injury or occupational disease be compensated only if the
accident or occupational exposure was the dominant factor in causing
the condition or disability. The current law allows compensation
if the workplace accident or exposure was the substantial factor
in causing the condition.
Support appropriate changes in the workers’ compensation law
to encourage economic development and provide more job opportunities
in Missouri.
LOSS LIMITS
Missouri law restricts a customer from spending more than $500 every
two hours, and it is the only state that imposes such a limit. The
Missouri Gaming Commission has consistently reported that the loss
limit makes Missouri casinos less competitive than casinos in neighboring
states. No evidence indicates that loss limits restrain problem
gamblers. In a Gaming Commission survey of problem gamblers who
have placed themselves in Missouri’s voluntary exclusion program,
90 percent said the $500 loss limit did not prevent people from
becoming problem gamblers. A lifting of the loss limits could raise
$53 million a year in new revenue to the state due to increased
customers to Missouri casinos. Statutorily, the new tax revenue
would be directed to education, veterans, the state’s college student
loan program, the National Guard, early childhood development programs
and gambling addiction programs.
Support of repeal of the $500 loss limit in Missouri’s casinos.
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. Current regulations have contained health care costs
through oversight of unnecessary medical capital expenditures; however,
specialty providers do not receive the same degree of oversight.
Support changes in the certificate of need regulations to ensure
a level-playing field between hospitals and specialty providers.
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