New state laws will impact business bottom line

Gov. Matt Blunt's visit to the Cape Girardeau area in July didn't make much of a splash to John Q. Citizen, but it should have. While it's hard to generate much excitement when words like "economic stimulus bill" are part of the story, those who understand the implications are downright giddy.

Blunt was in town to sign the -- here we go -- "economic stimulus bill" into law. Called the Missouri Quality Jobs Act, the bill allows certain companies that create jobs to keep a portion of state income taxes paid by their employees for up to five years.

The jobs created won't be for flipping burgers. The jobs created under the new law must pay wages at least equal to the average wage in the county where the business is located or the average statewide wage, whichever is lower. The company must also provide health insurance and pay at least 50 percent of employee premiums. In other words, they have to be good jobs.

Blunt said the bill makes Missouri more attractive to companies thinking of locating in the state and also an incentive for businesses already here to expand.

It's not just lip service. Economic development officials said companies are already lining up to create new jobs in Missouri to take advantage of the financial incentives. Cape Girardeau Area MAGNET is in the mix, too, working to have one of the first projects in the state to participate in the Quality Jobs program.

This isn't the only new law that will have a deep impact on Missouri's economic development efforts. In addition to Quality Jobs Act, Blunt recently has also signed tort reform and worker's compensation reform into law. All of these laws provide new ways to create and attract jobs while also creating a fairer climate for business.

Greg Steinhoff, Missouri's Department of Economic Development director, strongly believes this.

"Missouri has always been a fair place to do business and with the passage of tort reform and workers' compensation reform the state will be an ever fairer place to do business," he said.

Blunt in March signed into law sweeping litigation reforms that exceed those in most other states and will allow Missouri businesses as well as those considering coming to Missouri to flourish without facing the threat of job-killing legal awards. Also signed into law by Blunt was legislation that prevents abuses of the previous workers' compensation system.

Other economic development legislation passed by lawmakers includes a bill making it easier for small and mid-size cities to qualify for benefits under the Missouri Downtown Stimulus Act and a bill that authorizes an annual sales tax holiday for certain school items.

Under previous administrations, Missouri was losing jobs -- particularly in manufacturing -- at an alarming rate. Laws like these, along with more forward-thinking with an eye on the business bottom line, are good steps in correcting that.

Scott Moyers is business editor of the Southeast Missourian and a regular contributor to Business Today. Contact him at smoyers@semissourian.com or 335-6611, extension 137.