This article first appeared in the St. Louis Beacon, July 20, 2011 - Missouri's Republican legislative leaders were traveling the state Wednesday afternoon, announcing that a deal has finally been reached on an economic development package that also resolves a dispute over the state's tax credit programs.
A key component is $360 million in state tax credits to encourage St. Louis area development related to a proposed cargo hub for Chinese shipments, which would be situated at Lambert St. Louis International Airport.
Within minutes of the legislators' initial news conference at Lambert, a spokesman for Gov. Jay Nixon confirmed that he will call a special session to focus on economic development issues, including the proposed tax-credit deal. That session is expected to be held in September, while legislators already would be in Jefferson City for the annual veto session.
"We finally reached an agreement,'' said state House Speaker Steve Tilley, R-Perryville, in a brief telephone interview Wednesday morning. "It's a good agreement."
Tilley, state Senate President Pro Tem Robert Mayer, R-Dexter, and a cadre of key legislators -- many of them from the St. Louis area -- had been spending weeks in negotiations to resolve disagreements that had scuttled an economic development package, including tax credit changes, during the final hours of the legislative session that ended May 13.
As part of the deal, the legislative leaders also agreed to push for passage of a provision granting St. Louis control of its police department -- although it's unclear if Nixon will agree to allow the special session to take up that issue. A Nixon spokesman said the specific issues to be tackled during the special session, beyond the general economic-development focus, were still being worked out.
The local-control provision appeared aimed at getting the support of St. Louis Mayor Francis Slay for the overall economic development package, which includes restrictions on state tax credits for historic preservation. The mayor has relied on the incentive for downtown redevelopment.
In their joint announcement, Tilley and Mayer said the economic development deal would be "a groundbreaking job creation plan."
The key provisions mirror many of the elements of Senate Bill 100, which died in the final hours of the legislative session, Tilley said.
That bill eliminated a number of current tax-credit programs, such as tax break for low-income renters, and capped others -- notably the tax credits for historic preservation and low-income housing.
Mayer, Tilley and others confirmed that the same programs are targeted for limits -- or abolition -- in the new deal. The deal calls for sunsets of four or seven years on most state tax credit programs. The state's cost savings estimated for the deal -- $1.5 billion over 15 years -- is the same as for Senate Bill 100.
The audience at Lambert included a sole detractor -- state Rep. Rory Ellinger, D-University City -- who said he was concerned that the tax credit programs getting the ax would be primarily those helping the poor. "As a progressive, I want to make sure this is not being done on the backs of low-income people,'' Ellinger said. Although area Democratic officials and state Senate Democrats shared the mike at the news conference, Ellinger noted a lack of any House Democrats.
Ellinger's frustration reflected the weak status of Democrats in the General Assembly. Republicans hold 26 of the 34 state Senate seats, and 105 of the 163 seats in the state House.
Nixon and his top aides have been apprised of the basic provisions, Tilley and Mayer said. The legislative leaders expect to meet with the governor early next week.
After the news conference, Nixon's staff issued the following statement confirming that he will call a special session:
"By working together in a bipartisan way, we've taken another important step toward passing a major job-creation package in a fiscally responsible manner. From day one, Gov. Nixon's priorities have been creating jobs and keeping our state's fiscal house in order. The governor intends to call the General Assembly into special session to focus on passing a bipartisan jobs package and moving our economy forward."
Mayer and Tilley had earlier turned down Nixon's proposal for an economic summit to discuss such proposals.
At the news conference, two area legislators -- state Sen. Eric Schmitt, R-Glendale, and state Rep. John Diehl, R-Town and Country -- were singled out as key players in the post-session negotiations.
The Chinese Connection
But the news conference's intended audience was more than the business and political community. The anouncement of the bipartisan deal is also directed at the Chinese, officials said afterward.
A delegation of technical experts from China is slated to arrive at Lambert tonight to discuss technical issues with airport officials regarding the hub proposal.
Dan Mehan, chief executive of the Missouri Chamber of Commerce and Industry, said local leaders want the Chinese to be aware of the bipartisan nature of the proposed agreement.
Earlier this week, Nixon confirmed to state and regional business leaders that he'll lead an entourage to China later this year, a trip that would fit in with the St. Louis area's aspirations for a Chinese cargo hub. Mehan said the trip is slated for October.
Nixon has yet to travel to China, which has hosted visits by his two predecessors, Republican Matt Blunt and Democrat Bob Holden. Nixon had dropped a plan last year to travel to Taiwan after Chinese officials had signaled displeasure.
State and regional leaders want the economic development package to be signed into law before the trip so that Nixon can show that Missouri and St. Louis are serious about a business partnership with China.
Chinese officials have been watching the public and private jockeying over St. Louis' push for $360 million in state tax credits, which is aimed at encouraging hub-related development around the airport.
The governor is expected focus on such issues, including the prospect of more business dealings with China, during an economic-development address Thursday at the Danforth Plant Science Center.
Nixon, a Democrat, has maintained for more than a year that the state's tax credit programs are too costly overall and need to be reined in. Republicans controlling the General Assembly, however, have been split on the issue. In general, the state House has been more supportive of maintaining the programs than the state Senate.
China Hub Commission chairman Mike Jones was present at today's news conference at Lambert although he said nothing publicly. On Tuesday, however, he had offered up an encouraging update Tuesday to members of the St. Louis County Council, during a meeting prior to the regular board meeting.
As always, politics may play some role in any deal. Several key political players are seeking to bolster their pro-business credentials, as they prepare for the 2012 elections.
Nixon, a Democrat, is seeking re-election, and he is expected to face Lt. Gov. Peter Kinder, a Republican supportive of the hub.
Tilley is running for lieutenant governor. Mayer also has been considering a statewide run, possibly for attorney general.
Richard C.D. Fleming, chief executive of the Regional Chamber and Growth Association, served as emcee for today's news conference. He noted afterward the political and civic significance of seeing Republican and Democratic leaders standing together, sharing the same dream of the economic resurgence that a China cargo hub could bring.
Quoting movie director Woody Allen, Fleming observed, "The lions are lying with the lambs."
Then he added with a chuckle: "The lambs are nervous."
Fleming emphasized that he wasn't stipulating which party had the lions or the lambs.
