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State’s problems linger

Thursday, October 29, 2009

All things considered, Gov. Jay Nixon picked a good week to come to St. Joseph.

Already, we have cut the ribbon signaling the opening of the new Eastowne Business Park. We have witnessed the completion of an acquisition by Boehringer Ingelheim Vetmedica that will bring 50 jobs here. And we have read of a recent analysis by Moody’s Economy.com finding St. Joseph is one of 79 cities in the nation moving from “recession” to “recovery.”

Those upbeat developments are softened by the understanding that closing the American Airlines overhaul base in north Kansas City likely will cost this area about 100 well-paying jobs when the cuts take effect in a year.

Back in Jefferson City, meanwhile, the business of running the state has gotten more difficult.

Through the fiscal quarter ending Sept. 30, Missouri general revenue collections dropped by 10 percent compared to the previous year. Unemployment remained at 9.5 percent in the state in September, with more than 285,000 residents out of work. Enrollment in the state Medicaid program has risen by 39,000 people, or 4.7 percent, in the last year.

Then on Wednesday, Gov. Nixon announced $204 million in new budget restrictions. The actions — including eliminating nearly 700 jobs — raise the total to $634 million cut out of the $23.7 billion current-year budget.

When Gov. Nixon takes the podium today at the 2009 Economic Summit Luncheon, sponsored by the St. Joseph Area Chamber of Commerce, he most likely will talk about past accomplishments, including jobs legislation approved this spring, and about issues he would like to see taken up in January.

He likely will be very encouraging of recent developments in St. Joseph and of our diverse economy. And yet he can’t help but reference continuing federal and state economic woes. Further belt-tightening is almost certain.

Gov. Nixon’s challenge in his talk is similar to that of wartime presidents addressing the nation: He must provide hope this difficult period will end soon, but be careful not to over-promise or to suggest recovery will be painless.

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