SPEAKER ASSESSES LEGISLATURE

"We got a cake but no icing."

Dan Mehan, vice president of governmental affairs for the Missouri Chamber of Commerce, wanted the icing.

"But that went by the wayside during the final 30 minutes of the recent Missouri legislative session," said Mehan, referring to the Legislature's failure to pass a franchise-tax-relief bill for corporate taxpayers. A filibuster by Sen. John Schneider, D-Florissant, prevented passage of the bill.

Mehan was in Cape Girardeau Friday to discuss the legislative session and how it affected business.

"Overall the legislative session was a good one for business," said Mehan, guest speaker at the Cape Girardeau Chamber of Commerce's First Friday Coffee. "It was a time-consuming session, but a lot was accomplished."

Passage of a wage-redemption amendment, a tax-reduction measure, improvements in workers' compensation and removal of prohibition against the use of cleaner-burning reformulated gas combined to make the 1998 session a positive one for business, he said.

Mehan was disappointed with the failure to get a change in the corporate franchise tax.

"This tax applies to businesses with total assets of more than $200,000," said Mehan. "Basically, it's a tax for employers for the privilege of doing business in Missouri and produces revenues of about $80 million."

The new proposal was for the tax, which is one-half of 1 percent of total assets, to apply to large corporations with more than $1 million in total assets. It would have meant a tax reduction for more than 19,000 businesses in Missouri.

"We need to look at this one again next year," he said.

One of the legislative changes was a provision of a Missouri Chamber of Commerce-endorsed amendment that prohibits any municipality that has a Community Improvement District to establish a minimum wage higher than the state's minimum wage.

"Petition drives led to an election two years ago that would have shoved the state's minimum wage to the highest in the nation, which would have been detrimental to small business." said Mehan. "It was defeated, but there had been talk of trying to revive a similar vote."

Another petition drive is under way by the Missouri Volunteers for Clean Elections to place an issue on the ballot this fall that could raise state income taxes as much as $11 million for taxpayer-financed elections, he said. "It appears that the group will have enough signatures to get it on the November ballot," said Mehan.

Approval of the measure would enact statutes that allow candidates for election to the General Assembly and statewide offices to receive public funds to finance their campaigns. The funding would come through an increase in state income taxes.

Candidates would receive public money in the primary elections ranging from $10,000 for state representative candidates to $1 million for gubernatorial candidates. Additional money would be available for candidates in the general election.

The Missouri chamber and Associated Industries of Missouri have registered opposition to the proposal.

Mehan cited other positive issues that passed the 1998 Legislature:

-- A tax-reduction package for individual taxpayers designed to bring the state into compliance with the constitutional limitation on revenues.

-- A variety of sales-tax exemptions for businesses, including one for replacement parts used in the production of goods for resale.

-- Improvements to the workers' compensation bill.

-- Removing the prohibition against the use of cleaner-burning reformulated gas essential to help comply with the Federal Clear Air Act.

Mehan told the group that the Missouri chamber's annual Voter's Guide was at the printers and should be available soon. "This is a good guide to the Missouri General Assembly," said Mehan. "It rates the legislators and how they voted."

Mehan said state Sen. Peter Kinder and Rep. Mary Kasten, both Republicans of Cape Girardeau, were rated 100 percent pro-business.