July 06, 2007 07:45 pm
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From staff, AP reports
JEFFERSON CITY, Mo. — Republican lawmakers over the next few days will huddle about how to respond to Gov. Matt Blunt’s veto of a package of tax breaks sponsored by a Joplin lawmaker.
The Missouri Quality Jobs Act bill, sponsored by Rep. Ron Richard, R-Joplin, gave companies tax incentives for jobs they created that paid above-average wages and for which employers provided health insurance and paid at least half that cost.
But Blunt said the bill passed by the GOP-led Legislature would have cost the state about $200 million while passing out money to questionable causes. He also said it was “loaded down with excessive spending.”
Because of a drafting error in one of its key programs, the bill also could have rewarded some businesses for low-paying jobs lacking health insurance, instead of jobs with above-average wages and health insurance, Blunt said.
“What started as a very narrowly defined piece of legislation to expand programs we know work and have been successful grew into a very large bill with a laundry list of initiatives and projects,” Blunt said in a conference call with reporters.
Blunt did indicate that he would be willing to convene a special session if the Legislature could fashion a slimmed-down version of the bill.
Richard told the Globe in a Friday phone interview that he respected the governor’s opinion, but he still supported the bill passed by the Legislature.
“I still believe the benefits outweigh the problems,” he said.
Richard said he will be huddling with other Republicans to determine if there is a consensus about how the Legislature should respond. The options include overriding the veto, revising the vetoed bill, and starting a new bill entirely.
Richard did say he was surprised by Blunt’s decision because he thought that the governor would have vetoed the bill earlier if he rejected the bill.
The bill would have changed several parts of the Quality Jobs Act implemented four years ago. The original legislation extended tax incentives for new jobs that paid wages above the county average, in addition to the breaks for health-care coverage.
The amount of the incentive is based on the type of company or business project, and the amount more than the county average wage being paid for the new jobs. The new legislation applies to small businesses as well as those with more than 1,000 jobs at stake. Depending on the details, some companies could be eligible for as much as $1 million in tax credits a year.
The final version of the bill passed by both houses, however, contained 18 amendments the Senate added to Richard’s bill, increasing the financial impact by more than $35.5 million to the state. Some of the added amendments create protected hunting land, give sales-tax exemptions for vehicles sold in 2008 that use biodiesel, and allow tax credits for everything from beef cattle to biodiesel.
GOP leadership
House Speaker Rod Jetton said Friday he would agree to a special session only if Gov. Matt Blunt gave lawmakers leeway on what the bill should include and only if it occurred before Sept. 12, when lawmakers convene in an annual session to consider whether to override vetoes.
Otherwise, “I would vote to override that veto,” said Jetton, R-Marble Hill. “We have to get an economic development bill passed.”
Source: The Associated Press
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