State economic development chief has long to-do list

Create new jobs. Keep existing jobs here. Overhaul the system that encourages companies to stay in or move to Missouri. Foster a friendlier business climate.

The list goes on.

As the state's new economic development director, Greg Steinhoff has a litany of things he wants to do that will reverse the state's alarming trend of losing jobs.

Steinhoff recently outlined his goals during a conference call with newspaper and magazine business reporters across the state.

"I was surprised when Governor Blunt called me," said Steinhoff, a longtime businessman from Columbia, Mo. "But I think I was chosen because I have an understanding of what being in business is really like."

Perhaps his idea that has the most potential for impact is a plan to improve the state's business incentives programs. The incentives are used by economic development leaders to lure new businesses to the state.

"In this area we have probably fallen behind many of our competitive states," Steinhoff said. "I hope to reconstruct it a little bit and make it so it's more focused on business expansion and business attraction."

Calling his new plan "Quality Jobs," Steinhoff offered a proposal to the governor that would create new incentives based on the number and type of jobs that a company creates. The proposal has to meet the approval of the legislature.

Under his plan, businesses would receive the incentive in the form of a cash rebate. The state would apply a formula -- based on how many jobs a company brings in and at what wages -- to determine how much of a cash rebate each business could receive.

"This provides the benefit on performance instead of on the promise of performance," he said.

Steinhoff also thinks it's a better idea to foster the growth of an existing business instead of spending too much time luring new businesses to Missouri.

"It has more of an attachment," he said. "It also helps us avoid getting into a bidding situation with companies that jump from state to state. Companies that are born here tend to make more contributions."

Steinhoff has other ideas. He wants to put a greater emphasis on encouraging the expansion of Missouri's growing biotech sector. He also is working on a plan that would assess up to a 1 percent sales tax statewide for economic development initiatives.

"Every state wants to bring high-paying jobs to their state," he said. "But we have to do a better job of lessening the decline and increasing manufacturing opportunities where maybe they're not the highest-paying jobs, but jobs we want to keep. We're going to look at all business sectors and look to make positive change."

Local leaders feel that Steinhoff is the man for the job.

Mitch Robinson, the executive director of the Cape Girardeau Area Magnet, said he has met Steinhoff several times.

"I've been impressed by his search for knowledge to start off with," Robinson said. "I can't imagine what it would be like to be dumped in that position, but everything I hear about Greg has been real positive."

There are big issues -- workers' compensation, tort reform -- but the smaller issues are important, too, Robinson said, citing Steinhoff's Quality Jobs program.

Robinson said that Steinhoff and Gov. Matt Blunt's commitment to improving the economy and business climate in Missouri, after years of struggle, has caused renewed optimism among economic development officials.

"During our annual luncheon, the theme was 'it's a new day,'" Robinson said. "It really is. From the top down, there's a commitment to the economy being changed. Greg's a big part of it, and it's not just lip service."

smoyers@semissourian.com

335-6611, extension 137