The Joplin Globe, Joplin, MO

Local News

June 15, 2010

Lawmakers’ reaction is mixed to Nixon’s call for special session

The governor’s call for a special session got a somewhat positive response from House Speaker Ron Richard of Joplin on Tuesday, though the reception from several other local lawmakers was far less than enthusiastic.

Gov. Jay Nixon is calling for a special legislative session on tax incentives that would benefit a Ford Motor Co. assembly plant, saying Missouri must act quickly to sweeten incentives if it hopes to compete for thousands of jobs making the company’s next generation of vehicles.

At issue is a proposal to allow Ford to receive up to $100 million in tax breaks over 10 years if it updates its Claycomo assembly plant near Kansas City for new model lines.

Additional incentives would be available for Ford’s Missouri-based suppliers of such things as axles, seats and steering wheels.

Nixon is considering calling a special session starting June 28 if there is bipartisan consensus on legislation. A similar bill failed last month on the final day of the legislative session when it got linked to a separate bill revamping Missouri’s pension systems. Nixon said that since then, other states — specifically Michigan, Ohio and Kentucky — have ramped up efforts to lure Ford’s new product lines.

Nixon says a decision needs to be made soon because Ford is deciding where to make its next generation of vehicles. Ford now manufactures trucks and sport utility vehicles at its Claycomo factory.

Richard on Tuesday said he favors “trying to figure out if there is a consensus for a special session.”

He said he had instructed the leaders of House committees that would be involved in the legislation to talk with their counterparts in the Senate “to see if there is common ground.”

“I don’t think it benefits Missouri to let those jobs go elsewhere,” Richard said.

State Rep. Kevin Wilson, R-Neosho, said that if the governor wanted action on the Ford incentives, he should have called lawmakers back into session immediately after the May 14 adjournment. A special session now “would be a waste of taxpayer money,” he said.

“The House voted on the Ford bill several times in regular session; we passed it, but the Senate wouldn’t,” Wilson said. “I don’t know what’s changed in the last six weeks that all of a sudden now, we need a special session.”

Sen. Gary Nodler, R-Joplin, and Sen. Jack Goodman, R-Mount Vernon, both voted against the incentives bill. They said they don’t see the need for a special session.

“If there has to be a special session, I’d rather see it during the veto session (scheduled for September),” Nodler said. “This is not the environment to spend an extra $100,000 on a special session.”

He said proponents may be responding to a deadline, “but residents of Southwest Missouri strongly opposed the federal auto bailout, and I’m not sure I see any indication they would be more enthusiastic about a state bailout. It’s still taxpayer dollars, directed at a specific industry.”

Goodman said it’s his understanding that a special session won’t be called unless there is a good likelihood of quick passage of the measures so there is “no big cost to taxpayers.”

“But I still have serious concerns about the cost of a special session, given the state’s budget problems,” he said.

Goodman said he opposed the incentive package when it was before the Senate in regular session “because people see it as a taxpayer bailout.”

“The government has to treat everyone in an evenhanded way, and when you’re picking out winners and losers, you’re not doing that,” he said.

Although targeted at Ford, the legislation could apply to any manufacturer. Companies could keep half the Missouri employee withholding taxes they normally would pay, if they invest at least $100,000 per full-time employee on factory improvements for a new product line.

The Associated Press contributed to this report.





Consensus



Missouri House Majority Leader Steven Tilley, R-Perryville, said Tuesday that he believes there is a consensus for the manufacturing incentives. But he said private negotiations are continuing in the House and Senate on the pension legislation that would help offset the costs of the incentives. That legislation would require new state employees to start paying money toward their retirements benefits.

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