The governor called the Legislature into a special session last week, and serious work on the legislation we have been asked to address began this week. There are two issues under discussion: incentives affecting manufacturers in our state and changes to pensions for new state employees. Many are stressing the importance of a quick reaction from the General Assembly, but I am concerned that rushing through these bills could cause more harm than good.
The first issue the governor has asked us to address is an incentive package first discussed during the 2010 legislative session. The legislation would provide $150 million in tax incentives (tax withholds) over ten years for manufacturers that expand their operations in the state, as well as suppliers of products to these manufacturers. The incentives are intended to encourage Ford Motor Co. to keep and expand its plant in Claycomo, which employs 3,700 workers. The total amount of tax incentives—or allowed retention of employee withholdings taxes—available under the bill is capped at $15 million each year for 10 years. The qualified company also needs to meet a specific set of requirements to receive the incentives. One concern about the legislation is the cost to the state, which is facing a tough budget year, and many are concerned that letting go of $150 million in revenue over a ten-year period would put our state through even more financial trouble down the road.
The other issue being discussed in the Senate is a plan to reduce state pensions. The plan would affect new state employees by increasing time-of-service requirements and the minimum retirement age and requiring employees to contribute to their pensions. While I am not opposed to reviewing our pension system and finding ways to cut costs, I am very concerned that action taken too quickly could have unforeseen effects in the future. We are talking about changes that will affect the state five and ten years down the road, and we need to make sure that we are comfortable and familiar with the bill before rushing it to a vote. There have been concerns voiced in both chambers, and quarrelling between the House and Senate could put the bill in jeopardy. I will be reviewing both issues carefully to get the best understanding on how this legislation will affect our state and the 16th District.
As legislators returned to the Capitol for a special session, citizens throughout Missouri and the nation celebrated the anniversary of our country’s system of government. I hope that everyone in the 16th District had a fun and safe Fourth of July. On this day in 1776, our great nation became the “land of the free and home of the brave,” and it is truly a reason to celebrate.
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The governor called the Legislature into a special session last week, and serious work on the legislation we have been asked to address began this week. There are two issues under discussion: incentives affecting manufacturers in our state and changes to pensions for new state employees. Many are stressing the importance of a quick reaction from the General Assembly, but I am concerned that rushing through these bills could cause more harm than good.
The first issue the governor has asked us to address is an incentive package first discussed during the 2010 legislative session. The legislation would provide $150 million in tax incentives (tax withholds) over ten years for manufacturers that expand their operations in the state, as well as suppliers of products to these manufacturers. The incentives are intended to encourage Ford Motor Co. to keep and expand its plant in Claycomo, which employs 3,700 workers. The total amount of tax incentives—or allowed retention of employee withholdings taxes—available under the bill is capped at $15 million each year for 10 years. The qualified company also needs to meet a specific set of requirements to receive the incentives. One concern about the legislation is the cost to the state, which is facing a tough budget year, and many are concerned that letting go of $150 million in revenue over a ten-year period would put our state through even more financial trouble down the road.
The other issue being discussed in the Senate is a plan to reduce state pensions. The plan would affect new state employees by increasing time-of-service requirements and the minimum retirement age and requiring employees to contribute to their pensions. While I am not opposed to reviewing our pension system and finding ways to cut costs, I am very concerned that action taken too quickly could have unforeseen effects in the future. We are talking about changes that will affect the state five and ten years down the road, and we need to make sure that we are comfortable and familiar with the bill before rushing it to a vote. There have been concerns voiced in both chambers, and quarrelling between the House and Senate could put the bill in jeopardy. I will be reviewing both issues carefully to get the best understanding on how this legislation will affect our state and the 16th District.
As legislators returned to the Capitol for a special session, citizens throughout Missouri and the nation celebrated the anniversary of our country’s system of government. I hope that everyone in the 16th District had a fun and safe Fourth of July. On this day in 1776, our great nation became the “land of the free and home of the brave,” and it is truly a reason to celebrate.
