In his latest Crowell Connection, Sen. Jason Crowell, R-Cape Girardeau, continues his criticism of the special legislative session that began this week.
This week, the General Assembly began a special session, called for the special interests. While the General Assembly usually meets January through May, for extraordinary reasons, the Governor or General Assembly can call itself into session to pass what it deems as legislation that cannot wait until January. In this case, September’s special session is nothing more than an effort to get right with campaign contributors at your expense, the Missouri taxpayer.
Senate and House Leadership spent the month of July in a backroom in St. Louis cutting a deal that is short on economic development, short on tax credit reform, but long on government handouts to special interests, creating a larger budget deficit that prevents us from funding priorities like education. And Governor Nixon has yielded to this deal, endorsed it, and is doing his part to sell this jobs package.
In my opinion, state tax credits in Missouri have become programs that favor special interests and wealthy developers who are generous to politicians’ campaigns. And these special interests are well represented in the halls of the Capitol by lobbyists who continue to convince legislators that tax credits create jobs or enhance economic development when all they really do is line the pockets of their beneficiaries. And as the influence of these special interests have grown, so too has the expansion of many tax credit programs. In total, Missouri tax credits have increased over the last 13 years by 430.9 percent, equaling $545 million in 2011. For Fiscal Year 2012, budget experts estimate the number of tax credits will grow to $639 million. House and Senate Leadership as well as the Governor need to rethink this approach of giving new tax credits to special interests in the name of job creation. It has not worked in the past and it will not work in the future.
The central component of this plan is called Aerotropolis, defined as an “international trade zone that uses multiple modes of transportation to move goods.” In order to create this trade zone, a large amount of warehouse space is needed to store products and this is where the state is being asked to spend your tax dollars. Supporters of Aerotropolis claim that in order to get investors to build this warehouse space and then attract air carriers to St. Louis, Missourians must give out $360 million in tax credits to developers and the airport.
Aerotropolis though is not about economic growth but is developer welfare. Requirements, such as for a developer to qualify for Aerotropolis tax credits, warehouses must be built on 100 contiguous acres of land or in specially designated areas mean that only a select few developers could qualify for these tax credits. If that wasn’t enough, according to real estate company CB Richard Ellis, there is currently over 18 million square feet of vacant warehouse space already developed in St. Louis and no need for new warehouse space. However, 80 percent of Aerotropolis tax credits will go to new construction, rewarding the developers while hurting business owners trying to lease their existing space. The Leaderships’ bill even gives the Mayor of St. Louis and St. Louis County Executive the power to be the gatekeeper to these state tax credits. Finally, the leaderships’ bill is not tied to an increase in international trade. Strong clawbacks and taxpayer protections must be included in order to ensure that Aerotropolis tax credits do not become a taxpayer funded “Air Bridge to Nowhere” boondoggle.
Our country is already facing massive manufacturing job losses to China but the central component to Leaderships’ and the Governors’ “jobs plan” is to give $360 million of Missourians’ money to import more China-made goods. Aerotropolis will result in a loss of Missouri manufacturing jobs. Governor Nixon has called this debacle “Made in Missouri” and the central component is a tax credit that subsidizes the importation of China-made good. Really? Folks, I can’t make this stuff up!!!!
I believe now is the time to make fundamental positive reforms to Missouri’s tax credits system to protect taxpayers’ money. We should subject awarding tax credits to a transparent process, where your representatives will have the chance to look at all the things we spend your tax dollars on and prioritize accordingly. In Missouri, the method by which we set Missouri’s priorities is through the appropriation process. Here we ask each of the state’s expenses to stand in line before your representatives in the General Assembly; requiring them to demonstrate why, with limited resources, they should be funded over others. By making tax credits subject to the appropriations process, all state expenditures would now stand in line and prevent them from playing favorites by allowing those who receive tax credits to cut to the front of the appropriations line.
Now is the time for government to live within its means, not spend money it does not have by authorizing giveaway tax credits not tied to performance. Together we have an opportunity to do right by the Missouri taxpayer but it will take you, the bosses of the politicians, to demand the right legislation is passed in this special session. This can be done by taking back our state government and holding Senate and House Leadership accountable. They are counting on your silence. I will continue in the coming weeks to examine further the issues and changes needed for a “Taxpayer and Missouri Jobs First” Special Session.
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