JEFFERSON CITY, Mo. — Gov. Jay Nixon today travels to the state’s western side to put last-minute pressure on senators to relent and pass a jobs bill.
Senate President Pro Tem Charlie Shields, R-St. Joseph, said the jobs bill still has a chance, but only seven working days remain in the legislative session and the sixth attempt at moving a package of incentives for employers failed as recently as this week.
“May 15 at 5:59 is probably the point where I’ll lose my optimism,” Mr. Shields said. The session ends at 6 p.m. next Friday.
Mr. Nixon today is scheduled to tour Kokam America in Lee’s Summit. The manufacturer of high-energy lithium polymer batteries is looking to significantly expand in response to a need for its batteries for electrically powered cars. Mr. Nixon is touting the proposed bundle of tax credits as a key way to help Kokam.
“Clearly, it’s been difficult for us to combine an economic development bill with tax credit reform,” Mr. Shields said.
There’s the sticking point. A group of senators continues to stall the package without the inclusion of caps on certain tax credits and other reforms, such as requiring tax credit approval from the Legislature instead of certain state departments or boards.
The largest disagreement exists over the Historic Preservation Tax Credit, which has surpassed $160 million in some years.
“The vast majority of Missourians would be appalled to know that of the major line items in the state budget, among the top 10 is the preservation of old buildings — above scholarships is historic preservation,” said Sen. Brad Lager, a Savannah Republican.
Mr. Lager is one of the Senate’s most vocal critics of tax credits.
But any mention of the preservation credits was missing from the most recent bout at a jobs bill. Mr. Shields’ SB 215 started out as a bill aimed at port authorities, but the House last week tacked on a slew of initiatives intended to stimulate the economy that were similar to other proposals unsuccessfully put before the Senate this year.
The bill would expand the state’s Quality Jobs incentive from $60 million to $100 million a year. Quality Jobs offers tax breaks to employers who meet certain income, jobs benefits and other standards. SB 215 creates a new tax credit for qualified research expenses, which has many Northwest Missouri implications along the animal health corridor.
Sen. Jason Crowell, a Cape Girardeau Republican who also is calling for more tax credit reform, said without an agreement on the Historic Preservation tax credits, he and others would continue to stall the proposals.
“Obviously it’s not the desire for the Senate to pass a jobs bill,” Mr. Crowell said.
Mr. Shields sought permission from the Senate to negotiate with the House and add the reforms in a conference committee, but Mr. Crowell opposed that, too, and the bill now is at a standstill.
“On life support,” is how Mr. Lager described it. Mr. Lager said he supported further negotiations in conference because it would have at least kept the proposal alive.
Now, Mr. Shields said several other economic development bills are circulating that lawmakers will use to pile on the same incentives, but they still have to pass it through the Senate and Mr. Lager predicted identical outcomes.
House Republicans and Democrats want a jobs bill, however. Rep. Ed Wildberger, a St. Joseph Democrat, said next week he expects House leadership to slow down the consideration of bills until the Senate takes action on economic development legislation.
“It’s just insanity,” Mr. Lager said.
Alyson E. Raletz can be reached at alysonraletz@npgco.com.