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DOWN TO THE WIRE
WHAT MATT BLUNT AND CLAIRE MCCASKILL
HAVE IN MIND FOR YOUR BUSINESS




Repeating the general election of 2000, Missouri voters will have a fresh slate in their choice for governor next month. With incumbent Bob Holden sidelined, both major-party candidates— Republican Matt Blunt, and Democrat Claire C. McCaskill—are making their first bid for the state’s highest office.

Both candidates promise a more prosperous future for the state: an improved educational system, from kindergarten through college; a renaissance of job growth, and an unleashing of the economic potential held by plant and life sciences; safer and more efficient transportation; revitalization of our urban cores, and so on. What define the candidates, of course, are their differing views on how to achieve such worthy aims.

Without question, both candidates have intriguing, though strikingly dissimilar backgrounds.

A lifelong Missourian, State Auditor Claire McCaskill was born in Rolla and raised in Lebanon and Columbia. She received an undergraduate degree from the University of Missouri-Columbia, attended the University of Missouri Law School, and then clerked for the Missouri Court of Appeals in Kansas City. From 1983 to 1988, McCaskill represented Kansas City in the Missouri House of Representatives, and then became Jackson County prosecutor in 1993. She was elected state auditor in November 1998 and reelected in 2002.

Last August, McCaskill stunned political observers by winning the Democratic primary, making Holden the first sitting governor to lose a primary in state history.

Running for the state’s highest office as the Republican candidate is Secretary of State Matt Blunt. The son of Congressman Roy Blunt (R-Springfield), he was born in Strafford, Mo., near Springfield. After high school, Blunt graduated from the United States Naval Academy, then served five years on active duty. Today, he serves as a lieutenant commander in the Navy Reserve.

Prior to his election as secretary of state in November 2000, Blunt represented the Springfield area in the Missouri House of Representatives. On Oct. 9, 2001, he became the first statewide elected official in the history of Missouri to be called into active military duty. Blunt served for six months following the terrorist attacks of 9/11.

If recent history is our guide, the contest between Blunt and McCaskill could prove to be a close one. In November 2000, Bob Holden defeated Sen. Jim Talent by just over 20,000 votes out of 2.3 million cast—a margin of less than one percent.

For this month’s cover story, Commerce submitted to each candidate a list of 11 questions. The questions were developed by the RCGA Public Policy Council and members of the RCGA Public Policy staff. Both candidates were given equal time to respond in writing, and we have published their answers without edits, in their entirety.

Covering a range of business-related topics—from tort reform to the New Mississippi River Bridge project—we hope you’ll agree that both Matt Blunt and Claire McCaskill provided thoughtful and revealing answers.

—Bob Schaper Managing Editor

QUESTIONS TO CANDIDATES

QUESTION

Why do you want to be governor, and what unique qualifications would you bring to the office?

ANSWER

MCCASKILL

I love this state, I love Missouri, but we have to be honest about where we are. It’s a mess. Our roads are crumbling, we’re having trouble educating our children in our cities, and our rural schools are having trouble paying the bills.

With strong, innovative leadership we can move this state once again in the right direction instead of the wrong direction, where we have languished for too long.

As State Auditor, I have done more than 600 audits of state agencies and government, with hundreds of findings that have not been implemented. This experience, with that of being a former lawmaker and prosecutor, make me incredibly qualified to make a case for real change on behalf of Missouri taxpayers and residents. For Missouri to go in a new direction, for Missouri to change and do things differently, we must have a governor that can bring this state and its wonderful people together. We must have a governor that is willing to solve problems and not attack people.

ANSWER

BLUNT

Missouri’s potential is unlimited but we must move state government in a new direction. We must bring leadership, vision and change to the governor’s office. My plan to accomplish this task is at www.MattBlunt.com.

I have a record of strong and effective leadership in the public and private sectors, as well as in the military. I served the people of Missouri as a State Representative. I worked in building a small business, Churchill Coffee Company, so I know the challenges facing entrepreneurs in our state. After graduating from the U.S. Naval Academy in Annapolis, Maryland, I served as an officer for over five years on active duty in the Navy. In the Secretary of State’s Office, I have a record of delivering results to the people of Missouri. We enacted and implemented election reform, strengthened enforcement of our securities laws and reduced cost throughout the office for Missouri taxpayers.




What would be your single highest policy objective if elected?

BLUNT

Supporting public education should be our highest budget priority, not the number one political issue. I have pledged that in my administration we will never withhold money from our classrooms that has been appropriated by the legislature for education, we will never spend less on education than the year before, and we will never use Missouri schoolchildren as pawns in a cynical political game.

With education as our highest funding priority, creating an environment where entrepreneurs can create good jobs should be our greatest regulatory and legislative focus. There are immediate steps we can take to improve our job creation climate in Missouri. If Missouri is going to compete successfully on a national and global level for new jobs, then we must enact meaningful litigation reform, improve regulatory fairness and make improvements to our crumbling roads and bridges.

MCCASKILL

This election is about the future. Throughout this campaign, I have and will continue to propose a forward-thinking agenda that reflects my lifelong commitment to Missouri values. I have proposed a comprehensive, bold and visionary economic plan to create jobs, expand small businesses, reinvest in our urban core, promote job creation throughout the state, and increase job training. I have proposed an education plan to remove bureaucracy and administrative waste, moving more money directly into classrooms. I am proposing initiatives to battle child abuse, as well as fight crime—building on my years as a prosecutor and auditor. I will be a governor with the right priorities who can get the job done.



 
Describe your personal philosophy of political leadership.
 
MCCASKILL

You know as this campaign moves forward I think the most important thing I want to stress is that we will not get there by attacking people. If it is about attacking the Legislature, attacking the Chamber of Commerce, and attacking people that challenge you, that will not work. It has to be about attacking problems.

Over the last year thousands of people, wonderful people across all parts of Missouri encouraged me to run, but some asked me to sit back. There were some special interests, and a few party officials that said to me you can’t do this. They said to me “it’s too hard.” They said to me “it’s never been done.” They said “you would be the first.” I have heard that many times in my career. I have heard “you can’t do that” so many times I feel very much at home, I’m comfortable, and I will tell you every time I have been told “you can’t,” I’ve proved I can.

Together, with real people, with real Missourians that want their roads fixed, that want their children educated, that want to grow our businesses, together with real people, grit, determination, strength, and new vision, we will prove we can do right by Missouri, together.


BLUNT

Leadership is about more than identifying problems—real leaders achieve results. Leadership is about developing and implementing solutions to the challenges we face as a state. I have done that in the past and will do that as governor.



Many members of the business community believe there is a rural bias in the allocation of state funds for K-12 education. Do you agree or disagree? Further, given the current controversy surrounding the school foundation formula, what are your plans to fund education in this state?

BLUNT

We need to make school funding more equitable in Missouri, and we should take the initiative to address this problem before the courts impose a solution on us. This issue is best settled by the people’s elected representatives in the General Assembly, rather than in courtrooms by unelected judges.

As governor, I will immediately begin to work with legislative leaders and all stakeholders to develop a new formula for funding our classrooms. In order to be successful, this process will be transparent and will have a tremendous amount of public input.

MCCASKILL


As State Auditor, I issued a report showing that Missouri’s school funding formula is more unfair now than it was in 1993, when the courts found the formula illegal. As governor, I will work to ensure that school funding is both adequate and equitable. A new formula must be developed with input from all that simplifies the funding process, while providing more equity. Additional dollars can come from revenue growth, reducing administrative expenses, requiring competitive bidding on bonds and providing more accountability from tax credit incentive programs.

We need a state school funding system that does right by all our children, no matter where they live. We must ensure that classroom instruction is maximized and unnecessary administrative costs eliminated. I’m committed to leading Missouri to these challenging, but vitally necessary goals.



Tort reform has been a contentious issue in the Legislature for the past two years. The business community feels very strongly that substantive changes need to be made in this area in order to improve the business climate, and in particular, venue reform must be a key component of any meaningful legislation. What are your feelings about tort reform and would your administration support changes to venue rules?

MCCASKILL

Doctors in Missouri are facing alarming increases in medical malpractice insurance rates. Limits on non-economic damages in medical malpractice cases should be restored. These common sense limits were undermined by a recent court decision.


We also need broader insurance and civil justice reform in Missouri, includ-ing meaningful sanctions against abusive lawyers, more dispute mediation and enforceable time standards for cases to be heard. As governor, I will bring all sides together and get the job done to protect consumers and protect doctors.

BLUNT

My opponent supports Governor Holden’s vetoes of the litigation reform bills passed by the General Assembly in 2003 and 2004, both of which would have reformed Missouri’s venue laws. I would have signed either of those bills. Pursuing real litigation reform in the next legislative session will be one of my top priorities as governor.

Every Missourian should be protected from frivolous and unnecessary lawsuits—not just one profession. Doctors are leaving Missouri for other states or have closed their practices entirely in recent years due to the rising cost of medical malpractice insurance.

Frivolous litigation also negatively impacts the business community. In March 2004 the U.S. Chamber of Commerce ranked Missouri as among the states with the worst legal climates—41st, down from 33rd in 2003.

I support strict venue language that tries cases where the alleged cause of action occurs.



Revitalization of the downtown core of St. Louis—as well as a healthy environment in which to promote economic development—is critical to the St. Louis business community. What is your view of the current economic development incentives available to Missouri’s entrepreneurs (i.e., Historic Tax Credits, Brownfield Credits, Missouri Build, etc.)? Does your economic policy contemplate the expansion or retrenchment of these economic development tools?

BLUNT

Many tax credits are valuable economic development tools. Many others have outlived their usefulness or are being poorly administered. In November 2003 the St. Louis Post-Dispatch found that the state had given over $2 million in tax credits to individuals with fraudulent businesses that existed only on paper for the sole purposes of defrauding the state. I believe that all tax credit programs should be reviewed and only those that are achieving the desired economic development or public policy goals should continued. However, I will continue to support and increase tax credits that effectively serve as economic development tools and as tools to revitalize our important downtown areas across our state. The Historic Tax Credit, Build Missouri and the Brownfield Tax Credit Programs are examples of programs that are working, and I support these programs.

MCCASKILL

My audits have revealed both successes and failures in Missouri’s economic development efforts.

Economic development tools should be measured by the results they produce. Incentives that produce superior outcomes should be continued and, if possible, expanded. Those that produce poor or mediocre results should be eliminated. But it’s this kind of performance measurement that has been missing. In auditing tax credit programs, I’ve repeatedly found state officials did not track program results to determine if a tax credit truly benefited Missouri’s economy. Such programs, including the Historic Preservation, Brownfield and BUILD Programs, which have served Missouri well, should be continually measured and reevaluated.



Infrastructure is critical to the economic well-being of the St. Louis Region. Amendment 3 will be on the November ballot. As you know this proposal ends the so-called “diversion” of fuel and sales tax to state agencies other than the Missouri Department of Transportation. Do you support this initiative?

MCCASKILL

I support Amendment 3. It ensures that road money is invested as originally intended—on roads. And with the nearly two dozen audits I’ve completed on various aspects of the transportation department, I know full well how the state has wasted road money. In addition, I’ve led by example and already returned all the highway money received by the auditor’s office.

BLUNT

Yes, our roads and bridges are among the worst in the nation, and having a strong transportation infrastructure is vital to the economic well-being of our state. I oppose the diversion of gas tax funds to areas of state government that have nothing to do with roads and bridges. In the past ten years our state government has spent $400 million dollars that was collected for transportation in state agencies including millions of dollars sent to the State Auditor’s Office during my opponent’s term in office. This is wrong and the first budget I submit to the legislature will demonstrate that I am serious about ending the wrongful diversion of funds earmarked for transportation.

MISSOURI GOVERNORS SINCE WORLD WAR II

PHIL M DONNELLY 1945-49
FORREST SMITH 1949-53
PHIL M. DONNELLY 1953-57
JAMES T. BLAIR 1957-61
JOHN M. DALTON 1961-65
WARREN E. HEARNES 1965-73
CHRISTOPHER S. BOND 1973-77
JOSEPH P. TEASDALE 1977-81
CHRISTOPHER S. BOND 1981-85
JOHN ASHCROFT 1985-93
MEL CARNAHAN 1993-2000
ROGER B. WILSON 2000-01
BOD HOLDEN 2001-
 



Keeping with the theme of transportation, a new Mississippi River Bridge in downtown St. Louis has been identified by the business community as its top infrastructure priority. Sen. Christopher “Kit” Bond (R) has led the fight in Washington to secure funding for the bridge. As governor how active a role will you play in trying to ensure the Mississippi River Bridge becomes a reality? Will you be willing to work with the members of the Missouri Highway and Transportation Commission to secure the appropriate funding levels for the new bridge?

BLUNT

Yes, and I will work with the congressional delegation to ensure this project is completed. I will also work with the East-West Gateway Planning Commission to ensure that the needed funds are allocated to the project, should the federal funding be approved. The Mississippi River Bridge is an important economic artery both for the St. Louis region and the state. As governor, one of my top priorities will be ending the diversion of gas tax funds to areas of state government that have nothing to do with transportation. I intend to be responsible for the state of our roads, highways and bridges. If they do not see improvement then Missourians should hold me accountable. One way to increase my ability to effect change is to allow me to appoint the director to run the MoDOT’s day-to-day operations. Under my model, the Commission continues to determine where dollars are allocated.


MCCASKILL

support the proposed Mississippi River bridge. As governor, I will work with our Congressional delegation and our Highway and Transportation Commission to advance this critical public investment.



Plant and life sciences have been identified as the pathway to a brighter economic future for the St. Louis region and the state. What are your views about this new industry and what policies would you implement to ensure its continued growth in Missouri? Please include your thoughts on stem cell research.

MCCASKILL

The life sciences industry holds tremendous economic potential for St. Louis and all of Missouri.


Missouri must support the life sciences in three ways: invest in scientific research, nurture fledgling life sciences companies and equip our citizens with the skills necessary to enjoy the fruits of these high wage jobs. As governor, I’m committed to these critical steps.

Stem cell research holds tremendous potential to uncover cures and treatments for devastating human diseases. Stem cell research should be encouraged in Missouri, not criminalized. We must help find a way to cure diseases such as diabetes, Alzheimer’s and ALS.

BLUNT

As Missouri’s new economy continues to grow, life-saving research is being done across Missouri that is consistent with the values we share, and this research holds tremendous potential. Adult stem cell research, for example, has the potential to save life and improve its quality. However, we must be cautious that this research does not violate our basic values. I am opposed to human cloning and to the creation of human embryos for research purposes, but I do not believe that some procedures, such as somatic cell nuclear transfer, involve the creation of human life. We must also ensure we are investing in research. I have been clear that during my administration, we will keep the commitment that the state has made to invest 25 percent of the proceeds of the Tobacco Settlement in life sciences research. Missouri must allow organizations to conduct research that could have tremendous benefits for mankind.



The growth and productivity of the St. Louis economy is greatly dependent on the skills and qualifications of its citizens. The strength of the University of Missouri-St. Louis affects the strength of workforce development in the region. For many years the state appropriation to UMSL has not been commensurate with the number of students it educates. Furthermore, an expanded curriculum is likely to be needed
as the shape of the St. Louis job market changes to keep pace with the new economy. Do you support increased funding for UMSL so that the University can keep pace with an ever-increasing student population as well as an ever-changing economy?

BLUNT

Yes, I support increased funding for all Missouri higher education institutions. We must recognize that we are competing with other states and countries for academic, intellectual, and research talent. We must make an investment in our higher education institutions. However, Missourians should insist that the money we already send to our public colleges and universities is spent in an efficient and prudent manner. Many business leaders in the St. Louis region have told me how important it is to ensuring that the region remains competitive and I understand their concerns.

MCCASKILL

Our public higher education institutions must be full partners in our economic future. For example, as St. Louis expands its life sciences industry, institutions like UMSL must equip a growing number of its graduates with the skills necessary for this important sector. I’ll work for a higher education funding system that is equitable and ensures that regional institutions and campuses have the resources necessary to meet local student and workforce needs.



In 2003, at the behest of business organizations around the state, Jim Moody published the “The Moody Report,” which delved into the structural problems hampering the state budget. Moody believes there are drivers that must be addressed in order for the state to regain a solid fiscal core. What approach would you take as governor to ensure the state never again suffers through the agonizing budget problems that plagued the last few fiscal years?

MCCASKILL

Although the Moody report turned out to be overly pessimistic as to revenue growth, the budget chaos needs to be addressed. First off, we have to improve how we forecast state revenue and the budget process. Second, we need to work to reach a consensus on the revenue available to budget. Third, we need to reexamine the state’s “mandatory growth” programs for cost savings. Corrections is a great example, where proven strategies—like drug courts—can significantly reduce general revenue expenditures on prisons. And finally, we need to work proactively, as opposed to reactively, to downsize non-essential services when revenue is down, or is not growing.

BLUNT

I am the only candidate in the governor’s race who has proven that I can operate state government more efficiently. Since January 2001 my office has reduced our costs so that in the fiscal year we just completed we spent 14 percent fewer Missouri tax dollars than when I became Secretary of State, and we have reduced our number of employees by 11 percent, while improving the quality of our service. I believe that similar savings can be realized throughout state government.


In 2004 I released a plan entitled Working for Missouri, a list of specific things we can do to make our government more efficient. My plan is available at www.MattBlunt.com. In addition to those specific acts I will also oversee a thorough, top-to-bottom review of Missouri state government. Although this has not been done in over 30 years, my opponent does not believe such a review is necessary.
 

 

 


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