Enterprise zones get a boost from 'Jobs Now' legislation

FERGUSON, Mo. -- Gov. Bob Holden on Thursday signed into law his "Jobs Now" bill, a measure aimed at creating jobs through local public works projects.

The governor signed the measure, which among other things will also provide $15 million to retrain current workers to keep up with advancing technology, at St. Louis Community College's Florissant Valley campus, and planned similar ceremonies in Springfield and Kansas City.

The program, a cornerstone of Holden's economic development effort, will provide up to $12 million annually for local infrastructure projects such as sewers and streets needed to accommodate businesses. The money comes from the repeal of what Holden called "ineffective and inefficient" tax credits.

Holden was joined at the ceremony here by legislative supporters, including co-sponsors Sen. Jim Mathewson, D-Sedalia, and Rep. Tom Dempsey, R-St. Charles, as well as economic development and community college officials.

"I am confident that the provisions of Jobs Now Bill 1155 will have lasting economic impact on our communities, our businesses and our families, and provide for Missouri's future economic prosperity," Holden said.

Outlining employmentHolden outlined the plan in December. Initially, he called for a bond issue of up to $200 million. Lawmakers backed the measure without dissent -- Republican leaders promoted the bill as a success -- but opted for direct funding instead of bonds.

Some local economic development officials are most excited about another part of the bill that expands the ability of communities to offer incentives to businesses that locate in "enterprise zones."

Missouri currently has 69 active enterprise zones -- areas which qualify to offer local property and state income tax breaks to incoming businesses because of high unemployment and low personal income levels. But the status for 14 of those zones -- including ones in St. Louis, Springfield, Sedalia and several rural areas -- will expire in two years.

Business leaders have also praised the bill's expanded tax breaks for businesses that create job-training partnerships with community colleges. Whereas the tax breaks now apply only for new employees, the legislation allows them for existing employees retrained to keep pace with changing technology.

Even supporters of the measure believe the name is somewhat misleading, saying that while the law will create jobs eventually, it won't be immediate.

"It's probably going to be six months before the applications [for enterprise zone designation] start flowing," said Mathewson. "We're not going to see people getting hired tomorrow."

Holden's political opponents were critical of the program.

"It really doesn't do anything to create jobs that are meant to cure problems facing the state," said Glenn Campbell, a spokesman for Democratic gubernatorial challenger Claire McCaskill.

Instead of a "photo-op" measure, the governor should be finding ways to improve the state's roads and highways and help municipalities, Campbell said.

A statement from McCaskill's campaign said that the $12 million dollars meant to fund infrastructure improvements was a "drop in the bucket of Missouri's needs." As an example, it cites information from the American Society of Civil Engineers estimating that the state's needs for wastewater infrastructure alone total $3.2 billion.

John Hancock, a spokesman for Republican gubernatorial candidate Matt Blunt, said Missouri's economy is already on the upswing, but thanks to President Bush, not Holden.

"It's typical of this governor, solving a problem that others have long-since solved," Hancock said. "Where there are real problems in the state that must be addressed -- medical malpractice, transportation -- he's not signing real legislation to deal with those things. In fact, he's vetoing it."

AP reporters David Lieb and Jim Salter provided information for this story.