SWEEPING ECONOMIC DEVELOPMENT PACKAGE MOVES THROUGH HOUSE

A sweeping economic development package has been approved by the Commerce Committee of the Missouri House of Representatives, and could be taken up on the House floor within the next two weeks.

Rep. Joe Driskill, D-Poplar Bluff, and chairman of the commerce panel, is sponsoring the package. He is optimistic the measure can win approval because of its early placement on the House calendar and the fact it contains many parts of Gov. Mel Carnahan's JOBS 2000 economic development plan.

"I think it has some attractive features in it, features which I believe would be very helpful to job creation in the state of Missouri," said Driskill.

The legislation, House Bill 566, is supported by several groups, including the Missouri Chamber of Commerce. Not all portions of the bill apply to the Department of Economic Development, Driskill said. He said the legislation recognizes that creating jobs requires cooperation with other state agencies and the need to invest more in helping existing businesses expand.

One part of the bill requires the governor to submit as part of his budget message a tax expenditure budget that outlines a cost-benefit analysis of the reduction in revenue collections based on authorized exemptions, preferences and tax credits for certain economic development programs.

Driskill said it is important that everyone understands the kind of incentive programs that are being offered and just how effective they are in creating jobs.

"We have a lot of tax credit programs that have been our mainstay of economic development facilities in the 1980s, and in some cases it has been inappropriate to use them in the way we have used them," said Driskill.

Another component of the bill requires the Missouri Highway and Transportation Commission to develop a comprehensive plan for modernizing transportation in the state. This plan will not only focus on highways, but also airports, river ports, high-speed trains, and mass transit.

The bill would also replace the Missouri Corporation for Science and Technology with the Missouri Business Modernization and Technology Corp., which would expand the scope of the old organization considerably.

"The idea is to concentrate on this board having members with experience in high technology rather than having political hacks serving on the board," said Driskill. The new group would promote modernization and development of science and technology to strengthen the state's economy.

A key component of the bill, Driskill said, is the opening of at least seven regional economic development offices around the state. The offices would also work closely with small-business development centers and regional planning commissions. Presently, the state does not have any regional offices.

"This is the most fundamentally important portion to the bill," said Driskill. "It will establish a local presence where businesses are and business needs exist rather than in Jefferson City. We will be adding new people and new functions to rural areas and regions of the state."

A sudden-response job-retention team would also be created under the bill to help industries like shoe factories that may eventually be closed.

"The team will have experts on technology, financing, accounting, and modernization with ideas to work with companies on long-range planning to keep them out of trouble," Driskill explained. "Under federal law we have a response team to work with people who become unemployed due to foreign competition, but we're taking a different approach; we want to work with these companies before people lose their jobs."

He believes the teams will be able to help companies use technology that will improve productivity and reduce costs.

A New Jobs Fund would also be created to enable the state to make direct investments in promising new companies. In exchange, the state would either take an equity position or enter into a debt relationship, Driskill explained. The legislation provides $5 million for the fund.

The Missouri constitution prohibits the state from using funds to benefit a private business. A separate constitutional amendment is being proposed to allow it in these instances.

The bill also includes plans for an information technology commission; expands the MOBUCKS program to allow investments to be made in agribusinesses, and expands opportunities for business development by minorities.