New lawmakers, ideas to affect business agenda in 2007

by Daniel P. Mehan

January 13,2007

During the new legislative session, the Missouri Chamber of Commerce and Industry is looking for new approaches to solving problems facing Missouri employers, and it appears lawmakers are poised to deliver. New ideas to address recurring issues—such as Missouri's health care system, its tax policy and the education of our future workforce—already have been proposed and likely will rise to the forefront of debate during the 2007 legislative session. What strikes me about the new session are the innovative ideas that are being proposed—ideas that truly can make a difference for Missouri's economy and quality of life for our citizens. I only hope that lawmakers can keep their momentum and build the consensus necessary to see these ideas through.

Lawmakers are facing a new budget outlook. The reported $500 million state budget surplus is a welcome change from previous sessions, and the administration and legislative leaders should be commended for actions that brought our state from carrying a nearly $1 billion deficit to operating in the black. But with this opportunity comes the challenge of rising above special interests to prioritize these funds. In fact, budget analysts say a large part of the new revenue already is committed to maintaining existing programs.

New lawmakers, new ideas and a new fiscal landscape will put a spin on the legislative session that's different from what we have seen in the past. The Missouri Chamber of Commerce and Industry is optimistic that these factors can result in pro-business legislation and a positive outcome for Missouri's economy.

In no case is a new approach to policy more critical than in the area of health care. Gov. Matt Blunt is proposing a new state-sponsored health care system, called HealthNet, to replace Medicaid—a move that not only could save the state millions by providing a more efficient delivery system but also could provide benefits for Missouri employers. Missouri cannot afford the status quo in the area of health care. According to early reports, the new program would focus on personal responsibility—an element of health care reform the Missouri Chamber has advocated for years. Education to help consumers learn how to take control of their health and health care options would lower the costs of health care for everyone. The Missouri Chamber also supports a provision in the proposal that provides incentives to small businesses that offer health insurance for the first time.

The quality of the state's education system also is vital to our standard of living and well-being. Education reform is a key part of the Missouri Chamber of Commerce and Industry's 2007 legislative agenda, and many of these new ideas rise from the chamber's participation in the METS Alliance. METS stands for math, engineering, technology and science, and the alliance, made up of business, education and community leaders from around the state, was asked by Gov. Matt Blunt to recommend solutions to joint problems of Missouri students scoring low in math and science on standardized tests and the growing need for a workforce skilled in METS-related fields. Meeting throughout the summer, this group presented a bold outline of recommendations to Gov. Matt Blunt in September. Some of the METS Alliance ideas will be pushed in the upcoming legislative session.

Improving education will increase the state's skilled workforce. The next step is to ensure all qualified Missourians have access to high-paying, skilled jobs. One way to enhance job growth is by improving the Quality Jobs Act, an innovative economic development tool enacted after the 2005 legislative session that promotes the addition of jobs by helping businesses build new facilities through tax rebates. The program targets high-growth industry sectors and ties the tax breaks to wage levels and health insurance benefits. The program already has added hundreds of Missouri jobs; however, the law currently limits the rebates distributed in a year. Lawmakers can raise or remove the cap.

Missouri lawmakers also would have the opportunity to invest millions of dollars in our higher education institutions through the Lewis and Clark Discovery Initiative. Leveraging the sale of more than $435 million in assets of the Missouri Higher Education Loan Authority, Missouri could see the largest capital investment in higher education in the history of our state. New facilities on higher education campuses are the main component, but the plan also would allow the state to keep beneficial research and talent in Missouri by setting aside some of the funding for commercialization.

While innovative legislative proposals hold opportunities for Missouri employers, some could also be dangerous. One area that the Missouri Chamber will monitor closely is tax policy. The push is on in the General Assembly to overhaul Missouri's tax code, which is one of the most complicated in the nation. Businesses looking to set up shop throughout the state must learn to navigate through the thousands of taxes, which may cause them to choose to move to other states that offer simpler tax codes.

But simplification of the tax code is not that simple. If Missouri's complex tax code is reworked, inevitably the tax burden would shift, and that puts Missouri employers in a vulnerable position. It is critical that Missouri employers have a strong voice during any tax policy discussion.
Many new ideas will be reviewed in the upcoming session; however, the Missouri Chamber will also advocate revisiting several key employer issues, such as workers' compensation, for which the chamber will work to strengthen the Second Injury Fund, and the new minimum wage law, which the chamber advocates overturning.

These are just a few of the issues that will likely be debated in the 2007 legislative session. While the session holds many new opportunities and challenges for Missouri employers, one thing remains constant: Missouri has a strong pro-business legislature and administration. Now, Missouri is in a position to build on past successes and to enact new and proactive measures that will improve not only the business climate in Missouri but also the quality of life for all Missourians.

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