MISSOURI SENATE ADVANCES LEGISLATION MEANT TO HELP
STATE'S BUSINESSES AND EMPLOYEES
JEFFERSON CITY -- The Missouri General Assembly is approaching its final four weeks of session, and this week the Senate advanced two bills meant to assist Missouri's businesses and employees.
On Tuesday, the Senate perfected language on legislation that would make changes to Missouri's tax laws in an effort to provide incentives for the Ford Motor Company to keep its Hazelwood assembly plant open.
Senate Bill 620 would amend current laws related to the BUILD Program incentives, the Enterprise Zone Program, and the Community College New Jobs Training Program.
For their part, Ford would be expected to reinvest $500 million over a five-year period and commit to keeping the jobs in Missouri for a period of time.
As most of you already know, in January 2002, the Ford Motor Company announced a restructuring plan that would close five plants throughout the country, including the one located in Hazelwood, over the next several years.
In March of that year, the governor appointed a 22-member task force made up of business, community and political leaders to develop a plan to encourage Ford to keep the Hazelwood plant open. Many of the recommendations of this task force are included in SB 620.
The loss of this plant would be devastating to Missouri's already struggling economy.
Businesses in 29 counties in the state provide products for Ford. A number of residents of Franklin, Warren and west St. Louis counties are employed at the Hazelwood plant. The Missouri Department of Economic Development estimates that approximately 10,000 jobs would be lost - both directly and indirectly - as a result of the shutdown of the Ford plant. That would result in the loss of more than $500 million in wages.
It's estimated that Missouri has already lost around 90,000 jobs in the last two years, we can't afford to lose anymore.
This bill must get final approval in the Senate before being sent to the House of Representatives.
Approval was given to Senate Bill 2, which would allow the state to sell up to $100 million in bonds to help finance Missouri's Unemployment Compensation Trust Fund. This legislation offers Missouri with an alternative to borrowing from the federal government to cover shortfalls in the unemployment insurance fund.
Federal law requires this coverage, which is financed by employer-paid premiums If state reserves become depleted, the federal government lends revenue to the state, which is repaid by a 30 percent surcharge on employer premiums.
The federal government charges approximately 6 percent interest on these loans.
By using the bonding approach interest costs would drop by half, sparing consumers and businesses the additional expense the employer surcharge would entail.
Having been approved by the Senate, SB 2 has been sent to the House for consideration.
In other business, the Senate approved Senate Bill 39, which would bring together a group of five top-level sheriffs to comprise the Missouri Sheriff's Methamphetamine Relief Team (MoSMART). MoSMART members would work to coordinate meth eradication efforts and review grant proposals for programs and projects advancing the mission.
MoSMART's anti-methamphetamine funding priorities would be:
If you are in Jefferson City, please feel free to stop by my office in Room 226 at the State Capitol. You may call me anytime at (573) 751-3678, or you may call my home at 239-2521 or 239-2523. My cell phone number is (314) 650-5777 and my toll free number is (800) 247-6102.