Governor touts program to boost state's job growth

Gov. Bob Holden says his Jobs Now initiative would boost job growth by funding infrastructure improvements, targeting investment in plant and life science industries and providing the matching money needed by local governments to secure other government grants.

"You are not short of vision, you are short of cash," Holden told nearly 40 officials from cities, counties and local government agencies at a meeting at the Show Me Center on Monday.

Holden said many rural areas of the state don't have the infrastructure needed to attract industry and don't have the industry to generate the taxes needed to pay for such improvements.

From July through December of last year, Missouri created 22,000 new jobs. The state ranks 14th in the nation in job growth, Holden said.

The Jobs Now program currently before state lawmakers would spur the state's economy even more, he said. "We need to keep Missouri moving in the right direction."

Funded by bonds

The economic development plan would repeal some tax credits and make changes in the state's enterprise zone program. That would free up $12 million to $15 million annually to underwrite $150 million to $200 million in bonds.

Sixty percent of the bond money would go to infrastructure improvements such as road and bridge projects. Twenty percent would be used to secure federal or nonstate grants, and the other 20 percent would be targeted toward industries like the plant and life sciences, where major job growth is envisioned.

The Missouri Development Finance Board, a quasi-governmental agency, would issue the bonds. The state's Economic Development, Agriculture, Transportation and Natural Resources departments would review the applications and recommend funding for specific projects.

Holden said that every $1 million in state funding through the program would generate $17 million in the economy.

The plan also involves establishing life science research districts centered on the state's four-year public colleges and universities. It would use a funding mechanism that would capture 50 percent of sales and earnings taxes and up to 50 percent of state sales and withholding taxes generated by life science industries.

Seven-member boards in Kansas City and St. Louis appointed by the governor would determine how that tax money would be spent in those districts. The other districts, including Southeast Missouri, would be governed by the board for the public college or university in that region.

In Southeast Missouri, that body would be the Southeast Missouri State University Board of Regents.

The boards could approve funding for research programs and research facilities. Southeast Missouri State University president Dr. Ken Dobbins, who attended the meeting, said he doesn't know how much money would be generated for such purposes in this region.

But he said the program would spark economic development.

'Flexible tool kit'

Agriculture director Peter Hofherr, who accompanied the governor, said too many projects in rural Missouri are stalled because local governments don't have the money needed for local funding matches needed to secure grant money.

Hofherr said the Jobs Now initiative would provide a "flexible tool kit" to pump up the state's economy.

Jamie Burger, a Scott County commissioner, said the commission and Scott City officials are seeking funding to construct a bridge over Ramsey Creek that would open up an area for development east of Interstate 55 and alleviate traffic congestion. Burger said the Jobs Now program could provide funding for the project.

Holden said his initiative, if approved by lawmakers, could make available funding for some infrastructure projects within three to four months.

The governor said the plan has bipartisan support in the legislature.

Holden said the regions of the state have to work together if Missouri is going to be able to compete for jobs in the global economy.

mbliss@semissourian.com

335-6611, extension 123