Nixon outlines plans for special legislative session

KANSAS CITY, Mo. (AP) -- Missouri lawmakers will return for a special session in September to focus on a proposed economic development package that includes revamping the state's business incentives and boosting its technology and science sectors, Gov. Jay Nixon said Thursday.

Nixon, a Democrat, made his comments during speeches in St. Louis and Kansas City one day after legislative leaders outlined their own plan, which contained several elements that Nixon endorsed Thursday, including encouraging international trade and high-tech development.

"We are poised to accelerate the growth of existing businesses, to expand global trade; to fuel innovation and to nurture start-ups," Nixon said. "But first we must reach consensus on the key components of an economic development plan."

Nixon and lawmakers have been working since the end of the legislative session in May to build a package that would authorize new business incentives and tax credit reform. He said he and lawmakers have made "solid steps forward" in developing a "very positive framework" for the plan that would be considered in the special session.

"I wouldn't be calling the Legislature back in September if I felt we would come down and spend weeks and weeks talking about this stuff," Nixon said after his speech in Kansas City. "You have basically everybody talking about the same areas."

The legislative plan would scale back tax breaks for building developers and low-income residents living in rented homes, aspects Nixon did not address Thursday. The legislative plan would also authorize up to $360 million in tax breaks for companies involved in international shipments at Lambert-St. Louis International Airport, where China Cargo Airlines is considering setting up a hub.

Nixon showed support for the hub plan, which he said "would allow us to continue to drive exports through the roof, which in turn drives job creation, profitability and prosperity not just in the St. Louis area, but all across our state."

He also endorsed other aspects of the legislative plan that would create incentives for science and technology companies, computer-based data storage centers.

Rep. John Diehl, R-Town and Country, who was involved in negotiating the legislative plan, said he was "encouraged" by Nixon's speech, which he attended in St. Louis.

"It seems that the governor has endorsed our proposal that we've come out with, and I look forward to getting these important programs over the finish line," Diehl said.

Diehl said he was surprised to hear the governor endorsing the project at Lambert.

"Last week he was not making that comment," Diehl said. "It seems like he's now on board."

Nixon also said the state was still "adding up the costs" from the recent disasters, including the Joplin tornado in May, flooding along the Missouri and Mississippi rivers and other storms. But he estimated the cost would be in the "hundreds of millions" and paying for those will also "be on the table in our special session," Nixon said.

Amy Blouin, executive director of the Missouri Budget Project, which analyzes state policies for the effect on the poor, said she had concerns about the business development plan and that the state should be "should be extremely cautious with any new investments."

"We're very concerned about the projections for the fiscal year," Blouin said. "We believe that Missouri will face another significant shortfall ... meaning that we're likely looking at cuts to core services."