Bill expands incentives to lure jobs to Missouri

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May 19, 2007

Anonymous The Joplin Globe Sat May 19, 2007, 06:07 PM CDT

By Melissa Dunson

mdunson@joplinglobe.com

More than 7,000 Missouri jobs paying more-than-average wages hang in the balance under the latest reincarnation of the Missouri Quality Jobs Act, awaiting Missouri Gov. Matt Blunt’s signature.

Rep. Ron Richard sponsored the legislation and says it could bring better-paying jobs statewide and especially to Southwest Missouri.

“If we get this thing passed, it could be the biggest piece of legislation for Joplin businesses,” Richard said. “It’s not because of the amount of money involved, but because of how much it will affect the businesses.”

Senate Bill 282 changes several parts of the Quality Jobs Act implemented four years ago. The original legislation gave companies tax incentives for jobs they created that paid wages more than the county average and for which employers provided health insurance and paid at least half that cost.

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 new legislation increases the number of businesses that can participate in the program and also raises the tax incentives allowed in one calendar year from $12 million to $50 million for Missouri.

Senate additions

But late last week, Richard expressed frustration with the 18 amendments the Senate added to his 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.

“Our bill was bare bones, it went to the Senate and they added to it,” Richard said. “It came back to the House and we took out two-thirds of what they added and sent it back to them. (The Senate committee) put it all back and told us we needed to go to conference again. Why? There’s no one to compromise with, so we passed the whole bill that has all the amendments.

“The governor hasn’t made a decision if he’s going to sign it.”

Jessica Robinson, spokeswoman for Blunt’s office, said there are questions about the real dollar impact on the state’s budget. She called the bill significant both in potential cost and benefit to the state and said the governor has already said he is anticipating the research on the bill will be longer than normal. Blunt has until July 14 to sign the bill.

“The governor is glad the Quality Jobs legislation got passed and there’s support for it, but (the bill) is big enough that there’s some evaluation needed as to what are the costs and benefits of some of the provisions.”

Rob O’Brian, president of the Joplin Area Chamber of Commerce, said the Quality Jobs Act is an economic development tool for businesses looking at expanding in or moving to Missouri.

“This is proving to be a very popular and successful program,” O’Brian said. “But right now, without the funding, it’s putting Missouri back again to not being as competitive.”

Local beneficiaries

Both LaBarge and EaglePicher Technologies in Joplin have used the program in the past to create jobs and company officials said the incentive influenced corporate decisions to bring jobs to the area.

Darrell Ideker, manager of business development for EaglePicher Technologies in Joplin, said the Quality Jobs legislation played a part in the company’s decision to add lithium-ion battery production in Missouri as opposed to across the state line with one of its other plants in Pittsburg, Kan.

EaglePicher used the legislation to create 105 jobs over the next five years. Ideker wouldn’t say how much the jobs will pay, but that it will be more than Jasper County’s average wage.

EaglePicher will benefit from the new legislation if the governor signs it, by getting more tax relief over more years. Currently, Ideker said the company is scheduled to use the incentive from 2008 through 2011.

Terry Geisz, general manager of the Joplin LaBarge plant, said they will use the Quality Jobs Act to create nearly 100 new jobs over the next several years. There are already 35 employees who qualify for tax credits under the program. Geisz said the jobs were hires the company would have made anyway, but the Quality Jobs Act was helpful in the ever tightening world of manufacturing budgets.

“It definitely defrays some of the costs for us,” he said.

$40,000 to $100,000 pay

State Rep. Ron Richard, R-Joplin, said most of the 7,000 jobs he knows of statewide that hinge on the governor signing the Missouri Quality Jobs Act will pay between $40,000 and $100,000 a year.