Local economic development officials keeping close eye on Missouri legislature's special session, hope for new programs

As Missouri legislators return to work this week, local economic development officials will be watching closely, hoping to see legislation emerge that will help them promote local growth.

At the Marshall-Saline Development Corporation meeting Aug. 14, Executive Director Roy Hunter said legislative action is needed so the organization can make use of Marshall's enhanced enterprise zone to help attract businesses.

Currently the cap on tax incentives in enterprise zones is spoken for, leaving no incentives for Marshall to offer for the next several years.

Hunter said businesses may ignore the city as a possible site until new tax incentives become available again in 2010.

"If the cap isn't raised, we can't do anything," he said. "It takes 12 months to get a project of any size done. If there's no cap extension nobody is looking at us for 12 months. It kills us."

Hunter said the ideal situation would be to remove the cap, something that was proposed in the House of Representatives during the previous session but was removed before the economic development bill was passed. But cap extensions, at least, are needed, he said.

State Sen. Bill Stouffer said he believes a cap on tax incentives is necessary in order to maintain some control over benefits the state offers businesses.

Stouffer expressed optimism about the economic development legislation now that the legislature has a chance to try again.

"We have a comprehensive plan to stimulate economic growth," Stouffer said.

Gov. Matt Blunt vetoed the bill because he said some provisions could have driven the bill's cost up to $200 million while passing out state money to potentially questionable causes.

State Rep. Joe Aull, D-Marshall, agreed that the previous version of the bill had become too unwieldy to work, after having a number of tax incentive programs attached to it.

"We added all sorts of tax incentives -- all good purposes -- but it weighed that bill down too heavy," he said.

Stouffer and Aull both expressed strong support for the Quality Jobs Program that is included in the economic development package, another aspect of the bill that Hunter is eager to see enacted.

Quality Jobs would offer employers incentives to provide higher wages and health benefits to workers.

The new version of the bill would allow up to $40 million annually in Quality Jobs tax credits.

Supporters of an economic development package contend Missouri could miss out on thousands of jobs if lawmakers do not take action in a special session.

As the session gets under way, there appears to be a general consensus for a measure that would significantly raise the amount of annual tax credits that can be issued under the Quality Jobs program.

That program provides aid to businesses that add jobs paying at least the county average wage and covering at least half their employees' health insurance premiums. Supporters want to raise the program's annual tax credit cap from $12 million to $40 million.

Lawmakers also will consider a measure to help speed up the repair of Missouri bridges.

Contact Eric Crump at

marshalleditor@socket.net