JEFFERSON CITY - In a legislative session marked by political potshots and party tension, Thursday saw a rare display of bipartisanship. A large economic stimulus bill designed to create jobs in Missouri passed the House and then the Senate Thursday without a single no vote in either chamber -- with Gov. Bob Holden subsequently announcing his support as well.
The so-called "Jobs Now" proposal will provide up to $12 million a year in grants for local public works projects. The measure would also provide a number of tax incentives for businesses to create jobs in Missouri, and expand the state's "enterprise zone" program, which allows struggling parts of the state to provide tax breaks to businesses to locate in their areas.
Rep. Ron Richard, R-Joplin, played a central role in developing the economic development legislation since last year, and said he thinks the new law will go a long way toward accelerating the state's economy.
"Starting today, Missouri is back in the game," Richard said.
While the governor has generally had a strained relationship with Republican leaders, Richard said he and Rep. Tom Dempsey, R-St. Charles, have been able to forge a good relationship with Holden and his staff over the last several months.
"He (Holden) can certainly take credit for it," Richard said. "On this item, he did a hell of a job."
One issue that almost derailed the legislation was Holden's desire for the state to issue $150 million in bonds to finance the "Jobs Now" program. But Richard said once the governor compromised on that point, the last piece of the puzzle fell into place.
"When those bonds came off, you could really feel the tide change," Richard said.
The "Jobs Now" projects will now be financed by repealing several business tax credits, and will be funded with up to $12 million a year. Local governments could apply for grants from the state of up to $2 million each year to help with infrastructure projects.
Richard said while less money will be available than under the original plan, more funding could be added in future years. He said it was "more important not to jeopardize Missouri's credit rating" by taking on millions of dollars in debt.
"It also allows these incentives to start working right away," Richard said.
Holden told reporters he was "very pleased" with compromise plan.
"This truly starts redefining economic development in the state of Missouri in the years ahead," Holden said.
Richard said the provisions of the proposed law concerning "enterprise zones" and job training will go a long way toward "making Missouri competitive."
For example, currently, the benefits of enterprise zones are usually only available for new companies. Richard said by changing the law to allow existing companies to also take advantage of those benefits, he thinks more jobs will be created in Missouri.
Richard said "one of the biggest complaints" he hears is that Missouri businesses close to the border are able to take advantage of certain tax breaks if they move to another state, but not if they stay in Missouri. For cities like Joplin, which sits right on the border of two neighboring states, he said this can be a problem in keeping employers from jumping ship.
"They say 'if we stay in Missouri we don't get anything, while we could move across to Kansas and be considered a new business'," Richard said. "This takes care of that problem."
Also, the process of creating an enterprise zone would be made much easier, as it would no longer be subject to approval by the legislature. A city or town anywhere in the state would only need to apply to the Missouri Department of Economic Development, and if it met the criteria, it could get approval to create the enterprise zone.
"This takes the politics out of it," Richard said.
The bill also includes a provision to allow the City of Joplin and all cities in Jasper County to impose a sales tax for economic development of up to 0.5 percent. Tax credits for businesses that send workers back to school for training at community colleges are also included, along with a number of tax breaks for businesses around the state.
The measure, having passed both houses of the legislature, has been sent to Gov. Holden for his signature.