A Q&A with Missouri's gubernatorial candidates

With the Nov. 6 election drawing closer, Missouri's gubernatorial candidates answer questions posed by the Southeast Missourian editorial board. The candidates includes Libertarian Jim Higgins, Democrat Jay Nixon and Republican Dave Spence.

Q: What do you see as the No. 1 priority for the governor in Jan. 2013?

Higgins: The No. 1 priority for the governor is to clean up the lobbyist problem. The best way to do that is to reduce the size and scope of state government through reduced spending. Excessive gifts to lawmakers are only a symptom of the problem. The main problem is the result of lawmakers having too much power and too much of our tax money. Power corrupts. Limit the power and influence of lawmakers and the lobbyists will go home.

Nixon: Continuing to strengthen our economy and help businesses create good jobs here in Missouri by building on our strong foundation of fiscal discipline. Over the past four years, while Washington was running up record debt, I brought Democrats and Republicans together to balance the budget every year, hold the line on taxes, and protect our AAA credit rating.

Gov. Jay Nixon

Instead of balancing the budget on the backs of taxpayers, I made government smaller and more efficient -- cutting $1.8 billion from the budget, reducing the state workforce by 4,300 positions, eliminating dozens of outdated boards and commissions, and reforming the state's pension system. That strong commitment to fiscal responsibility enhanced Missouri's business climate, helping us negotiate record investments from Ford and General Motors and bring Missouri's unemployment rate to a four-year low. I will continue to build on this important progress we've made by further streamlining government, expanding export opportunities for Missouri businesses, and ensuring Missouri students and workers have the skills they need to compete for 21st-century careers.

Spence: Jobs are the No. 1 priority. I am concerned that career politicians and government bureaucrats are destroying jobs and opportunity. I plan to use my 27 years of experience creating jobs in the private sector to help Missouri get back on track. We need to create a climate for job growth in Missouri and to do that, the governor must be in the front line attracting businesses to the state, keeping our companies within our borders, and working with the legislature to develop tools to do just that.

Q: What is your plan to insure pensions for those currently working in state government? Should the current state pension model be reformed going forward? If so, how?

Jim Higgins

Higgins: The state employee pension plan has been underfunded for years. Fluctuations in the stock market wreak havoc on planning to keep the pension plans solvent. The politicians have made rosy promises to state workers in regards to their pensions. These promises were made on behalf of the taxpayers who are now obligated to make good on them. The state employee pension plan was reformed in 2010 to make it more financially sustainable. This affected new hires as of Jan. 1, 2011. The 2010 reforms required new hires to work longer and to contribute part of their own salaries to the fund. Further reforms are needed to bring the state employee pensions system in line with the Social Security system.

Nixon: Two years ago I brought Democrats and Republicans together to enact pension reform legislation, strengthening the solvency of our retirement system, improving its efficiency and saving taxpayers more than $660 million over the next decade. Those bipartisan reforms have helped Missouri avoid the pension crises other states have experienced and brought the state pension system in line with practices in the private sector. If elected to a second term, I will continue to work across the aisle to protect taxpayer dollars and make sure state government lives within its means.

Spence: We've made promises to our state workers that their pensions will be protected for their retirement and we must honor those promises. I do believe, however, that reforms need to be put in place to ensure future generations will have access to the same security. The state has already had to enact reforms to raise the retirement age to 67 and requiring a defined contribution from state employees. It's probably too soon to determine the impact of these reforms, but as a principle I believe defined contribution plans give the worker more freedom to choose how he or she invests while also bestowing greater responsibility on the worker to take control of his or her retirement. We've seen in other states how defined benefit plans are crippling state budgets and I will not allow Missouri to fall into the same trap.

Q: What's your position on tax-credit reform?

Higgins: The state of Missouri has 61 different tax credit programs. Between fiscal years 2010 and 2012, redemptions of state tax credits increased 15.4 percent, setting an all-time record. Tax credits for specific companies or projects have been abused. Contractors have used tax credits for unnecessary projects. There is very little evidence that tax credits actually benefit the overall economy. Tax credits are susceptible to favoritism and crony capitalism. They might help specific companies but drain much needed capital from the economy in general. Tax credits distort the operation of the free market. We should let the free market determine where capital is invested. The workings of free market are much more efficient at allocating resources than the decisions made by politicians.

Nixon: Effective tax credits help create jobs, strengthen communities and move our economy forward. But, in recent years, tax-credit spending in Missouri has exploded. In fact, tax credits now account for nearly one-twelfth of our entire general revenue budget. As governor, I have fought to reform our tax-credit system. That's why I've reconvened my Bipartisan Tax Credit Review Commission to refresh its comprehensive report to make sure Missouri taxpayers get the best possible return on investment from these programs. If elected to a second term, I will continue to work with Democrats and Republicans to make tax-credit reform a priority.

Spence: Missouri's tax-credit system has spiraled out of control and needs to be comprehensively reformed. I support a moratorium on tax credits in our state until such time as we determine which credits, if any, are providing a positive return on investment for Missouri taxpayers. Government should not pick winners and losers, and currently that is how our tax-credit system is performing.

Q: What other tax policy issues would you address, if any, as governor?

Higgins: We should continue balancing the budget through spending cuts. The levels of state spending are already too high. We have too many lobbyists lurking around Jefferson City. Taxes drain much needed capital from the private economy. The politicians have a poor track (record) for spending our tax money wisely. Their decisions are based on the political considerations of the next election. They are not concerned about the long-range outlook for the state. There should be no increase of taxes of any kind. The role of the state should be to provide basic services only.

Nixon: Missouri is widely recognized as having one of the most competitive tax climates in the nation -- a climate I've worked to enhance by balancing the budget every year without a single tax increase, and enacting targeted tax cuts to help businesses create jobs. For example, last year I signed legislation to completely eliminate the franchise tax -- saving Missouri businesses $80 million a year. And in June, we enacted a targeted tax cut for small businesses that adds jobs over the next two years. I also signed legislation to phase out state taxes on military retirement income to make Missouri a premiere destination for our veterans to live and start a second career.

Dave Spence

Spence: I support modernizing the tax code by creating a tax system that is fair to employers and employees alike. We should be rewarding hard work, not punishing it. Onerous taxes shouldn't discourage productivity. A more competitive tax system is also needed to encourage business startups, help small businesses grow, and lure companies looking to relocate. My goal is to appoint an independent panel of experts to look at our outdated tax system and make recommendations for reforms that encourage expansion and the creation of new high-paying jobs.

Q: What role should state government play when it comes to economic development?

Higgins: Actually the state government has little influence over economic development. Only private companies can create jobs. We need to create an environment that is fair to every company without political favoritism. We need to have an environment where quality products and service are rewarded. The best and only way to promote growth and development is to get the government out of the way. The free market does a wonderful job at allocating resources and labor in an efficient manner. Government actions can only interfere, disrupt and distort the working of the free market. Almost all the economic "shortcomings" that have been blamed on the free market can be traced back to government interference of one type or another. Government should not regulate business nor should it provide subsidies and tax incentives for specific companies and industries. The law of supply-and-demand really does work. We need to let it work.

Nixon: For Missouri to stay competitive in the global economy, state government must help foster an environment where businesses of all sizes can grow and create jobs. That's why, as governor, I worked with more than 600 business leaders from across our state to develop the Missouri Strategic Initiative for Economic Growth. This five-year plan is our blueprint to create jobs and transform our economy for the future. In addition, I have worked to balance the budget every year, cut taxes on businesses, and protect Missouri's AAA credit rating -- a key signal to the business community that our state is a solid place to invest and create jobs. It's also vital that we make sure our workforce is trained and ready to compete for the high-tech, high demand jobs of the future. That's why, while making cuts elsewhere, we increased our investment in our Customized Worker Training program by 50 percent and made strategic investments in our community colleges and universities to help them prepare more students for high-demand fields and hold down tuition costs. We've also dramatically expanded our A+ Scholarship program, which covers two years of tuition and fees for students at Missouri community colleges, to 65,000 more students. We've also kept tuition increases at our four-year colleges to the lowest level in the country for the past three years. Finally, I have made increasing export opportunities for Missouri businesses one of my highest priorities as governor -- because helping small businesses sell more goods around the globe means more jobs for Missourians here at home. As a result, Missouri is now a top 10 state for business and sixth in the nation for small business growth. Exports of Missouri-made products have hit record highs, while Missouri's unemployment rate is now at a four-year low. That's clear evidence that our bipartisan and fiscally disciplined approach is moving our state in the right direction.

Spence: Government doesn't create the private-sector jobs we need but it can create an environment in which job creators can thrive. We need to get government off the backs of Missouri businesses and out of the way. That means eliminating burdensome regulations and protecting businesses -- large and small -- from frivolous lawsuits. That will lead to economic growth, more jobs, and more prosperity for all Missourians.

Q: Should Missouri establish a use tax for vehicle purchases?

Higgins: A use tax should not be implemented statewide. The decision should be left to the local municipalities and counties, but only after it has been approved by a vote of the people. According the Hancock II Amendment all new taxes need to be voted on by the people.

Nixon: I vetoed legislation earlier this year that would have retroactively imposed a tax on more than 100,000 Missourians without a vote of the people -- many of whom had purchased vehicles in private, person-to-person sales. I firmly believe that Missourians must have the right to vote on tax increases. In fact, Missourians have approved a local use tax in more than 40 counties and 90 communities across the state. I will continue to defend the right of Missourians to vote on tax issues.

Spence: The Supreme Court decision threw out a funding mechanism almost 90 percent of counties and municipalities across Missouri have used for more than 60 years. I would have signed H.B. 1329 because it's not a tax increase and it simply maintained a long-standing local taxing decision. As it stands today, the Supreme Court decision incentivizes Missourians to shop out of state for large household purchases such as cars or boats, which is harmful to Missouri job creators and local governments.

Q: What's your proposal for addressing Missouri's meth problem?

Higgins: Meth labs and seizures have been steadily rising in recent years but may be showing some signs of leveling off. Law enforcement can only stem the symptoms. Some have suggested we require a prescription for cold medicine containing pseudoephedrine.

However such laws should be voluntary. Requiring prescriptions for pseudoephedrine will only inconvenience law abiding citizens and will drive up costs for consumers and add an unnecessary burden to the already heavy caseload of doctors. Only two states so far, Oregon and Mississippi, have such a law. Drug manufacturers are currently developing an effective cold medicine which does not contain pseudoephedrine. These should be on the market soon. Pharmacists can voluntarily switch this new medicine and be assured that their product will not be misused without sacrificing profits. Improving the economy will reduce the lure for unemployed people to make a profit manufacturing meth.

Nixon: This is a very serious issue -- for families, for communities, and for law enforcement. When the federal government slashed funding for our local drug task forces, I stepped forward as governor and found state funding to keep those vital organizations in place. We also have put in place a comprehensive database to track purchases of pseudoephedrine across Missouri. We must continue to work together at every level of government and law enforcement to crack down on meth. As governor, I'm committed to doing just that.

Spence: Missouri is at the bottom of the barrel in job creation and economic growth, yet we do lead the nation in methamphetamine production. We ought to be embarrassed by how little our elected officials have done to address the meth problem in Missouri. I will make the eradication of methamphetamine the top priority of Missouri law enforcement and work with the legislature to craft law specifically geared toward halting meth in the state. I would also advocate the approval of a new form of pseudoephedrine, which has been developed but not approved by the federal government yet, that can't be used to make methamphetamine.

Q: What major education issues would you address as governor?

Higgins: The more you can localize education funding the better. Once tax dollars are sent to Jefferson City the school districts then have to engage in a political battle to get it back. It's an unnecessary waste of time and effort. When the state distributes education dollars there are lots of mandates attached that limit the flexibility of schools to operate efficiently. Local districts can spend the tax dollars much better and wiser than state bureaucrats. Funding for K-12 makes up about 25 percent of the total state budget. There needs to be more innovation in education. Throwing money at a poorly designed system will not help. The public schools get our tax money whether they perform well or not. Parents should be able to use vouchers to opt out of the public school system. Then parents will have more choices for their children. This will provide much-needed competition to the public school system. Competition is what promotes innovation and excellence.

Nixon: First, we must continue to support and improve our public schools. At a time when many other states were slashing funds for K-12 education, here in Missouri we provided record funding for K-12 education this year. Second, we must ensure students have access to an affordable college education that prepares them to compete for 21st century careers. That's why we negotiated a two-year tuition freeze, and expanded the A+ schools program, giving 65,000 additional students the opportunity to earn scholarships for two tuition-free years at one of Missouri's community colleges. It's also why I've strongly supported the Operation Jumpstart program to expand training for entrepreneurs at Southeast Missouri State University -- and why I've worked to fund that innovative program through my position as state co-chairman of the Delta Regional Authority. My administration has also made targeted investments in initiatives such as the Innovation Campus program, which will help students right here at Southeast Missouri State graduate with more skills and opportunities -- in less time and with less student debt. As a result, over the past three years, Missouri is No. 1 in the nation for holding down tuition increases.

Spence: Our children cannot be competitive in the 21st-century workforce if we fail them in their formative years. Under Jay Nixon, funding has been slashed by hundreds of millions of dollars. Money is the answer to every problem in education, but if our economy continues to struggle under Nixon, we will never get back to adequate funding levels in education.

Q: What makes you uniquely qualified for the office?

Higgins: I have not received any contributions from corporations, lawyers or special interest groups. I do not owe favors to anyone. As governor I will be able to make decisions based on what I think is best for the citizens of Missouri.

The two older parties got us into the mess we are in today. Both are equally to blame. There is little difference between the two older parties. Their speeches might be different, but once elected they both grow government. They might promote different programs, but still they each grow government. As governor I would trim government back to its basic services. There is too much money flowing to Jefferson City. If government was the solution then all our problems would have all been solved by now. Instead they are worse. Libertarians would let people live their own lives and let them make decisions for themselves. The bureaucrats have done a lousy job of taking care of us with our own tax money. I have been a Libertarian since the early 70s. I truly believe that the government that governs least governs best.

Nixon: Experience, and the values I learned growing up in De Soto, Mo. There, it wasn't about Democrats or Republicans -- it was about common sense and doing what was right. And that's the way I've served in public office, from my days in the state Senate, to my 16 years as attorney general, and now as governor. These past four years, I've brought Democrats and Republicans together to balance the budget without a single tax increase -- at a time when Washington was stuck in partisan gridlock and running up record debts. That strict fiscal discipline allowed us to invest in our schools and workers, and help disaster-stricken communities respond and recover. By working together, we're moving Missouri forward.

Spence: First, I've never ran for or held an elective office. I've been in the real world. I think that is a good thing because a fresh approach is desperately needed to fix the problems created by career politicians. Second, as a small-business owner, I've experienced first hand how government can stifle economic productivity. Third, I have been a CEO for 27 years; I am running to be the CEO of Missouri.

Q: What would be your approach to working with members of the state legislature?

Higgins: The question implies that we need to work together to do something. But what are we expected to do? We do not need more laws or regulations. We have more than enough on the books now to handle any situation. We need bipartisan cooperation to reduce spending and put money back into the hands of individuals and families. Legislatures do a very inefficient and wasteful job of spending money for other people. The less they do the better off the rest of us will be. I would trim the budget across the board from things Democrats like as well as things the Republicans like so they share the cuts equally.

Nixon: As governor, I've made it a priority to bring Democrats and Republicans to balance the budget each year without raising taxes -- protecting our state's perfect AAA credit rating. Working together, we passed landmark legislation to revive Missouri's proud auto industry -- and now Ford and GM are investing over $1.4 billion in our state, creating thousands of new jobs. And by working together, we've helped Missouri families deal with some of the most devastating natural disasters our state has ever seen. I'm proud that here in Missouri, we bring Democrats and Republicans in the legislature together to move our state forward. We've come a long way. But we're not done yet. Our best days are in front of us.

Spence: Unlike Jay Nixon, the Republican-led legislature and I share the same vision for our state. Nixon likes to take credit for the balanced budgets and tax cuts of the legislature in his TV ads, but he stands in the way of bold reforms that will get Missouri back to work. Furthermore, in 27 years as a small-business owner and CEO, I've learned how to lead, manage and get things done. In order to grow my business from 15 employees to 800, I had to bring people of different views together to achieve our goals. I will use these skills to bring the legislature together to achieve what's best for Missouri.