January 13, 2009

Gov. Nixon signs executive orders to help put Missouri economy on the right track

Jefferson City, Mo. -- On his first full day in office, Gov. Jay Nixon took action to turn around Missouri’s economy by signing three executive orders. The Governor said the executive orders signed today will ensure that the state of Missouri does everything it can to revitalize the state’s economy. The three first executive orders will:

• help preserve and create jobs in the vital automotive industry and those industries that depend on vehicle production;
• make Missouri well-positioned to maximize the benefits of the federal stimulus package; and
• create a pool of funds for low-interest and no-interest direct loans for small business owners.

“Quick, decisive action is necessary if we are to get Missouri’s economy moving forward again,” Gov. Nixon said. “To do that, we have to get Missourians back to work by creating new opportunities and by helping Missouri business grow and thrive.”

Executive Order 09-01 establishes the Missouri Automotive Jobs Task Force, a group of 12 people to be appointed by the Governor to identify ways state government can best help Missouri’s automotive industry and the industries that are dependent upon it. The Task Force will be charged with:

• Identifying current state economic policies and legislative enactments that help or hinder the development and retention of high-tech automobile production facilities within the state;
• Evaluating the effectiveness of job training programs, both inside and outside of state government, in preparing workers for the future of the automotive industry;
• Recommending legislative and policy solutions to strengthen the automotive workforce in Missouri in the short and long term;
• Identifying opportunities for future innovation and investment in the industry;
• Identifying funding sources for implementing any of its recommendations; and
• Issuing a report outlining its findings and recommendations.

“Missouri is home to the most productive, most highly trained automotive industry workers in America,” Gov. Nixon said. “But the national economic crisis has hit our automotive industry especially hard. We must fight to protect the vital auto jobs we already have here in Missouri – and make sure Missouri is a prime target for the production of the new, ‘green’ lines of vehicles already on the drawing boards.”

The executive order directs the task force to issue its report and recommendations within 90 days. Members of the task force, which will be assigned administratively to the Missouri Department of Economic Development, will serve without compensation.

Executive Order 09-02 establishes the 15-member Governor’s Economic Stimulus Coordination Council, which will examine how the state of Missouri can ensure it maximizes money that would come from the federal stimulus program. The Governor will appoint no fewer than 15 people to the Council.

“The federal government will be looking to the states for projects that are ready to move,” Gov. Nixon said. “This council will develop ideas on how we can make certain Missouri is ahead of the curve.”

The executive order directs the Economic Stimulus Coordination Council to submit a final report and recommendations. The report will include how the state can:

• Coordinate job creation activities with the Missouri Congressional delegation and the current and incoming federal administrations;
• Identify the best practices for the state of Missouri to utilize to ensure that the state is included at the maximum possible level in appropriations from a federal stimulus package; and
• Identify any other practices that the state of Missouri should adopt to maximize its relationships with the federal government.

The members of the council will serve without compensation; the council will be assigned administratively to the Missouri Department of Economic Development.

The third order, Executive Order 09-03, directs the Missouri Department of Economic Development to work with the Missouri Development Finance Board to create a pool of funds designated for low-interest and no-interest direct loans for small businesses. Gov. Nixon said he expected the funds for the loans will come from some of the participation fees collected on MFDB loans and from other sources, for a pool of about $2 million.

“My first meeting as Governor was with a group of small business owners on Monday,” Gov. Nixon said. “They said accessibility to capital was one of the primary challenges they faced to expand their operations and hire new employees.

“With $2 million, this fund would be enough to provide 80 loans of $25,000 each to the young innovators and small-business owners who will turn our economy around,” Gov. Nixon said. “We’ll provide these loans on a revolving basis to ensure the greatest possible impact. We want to do everything we can to help small businesses grow, and these types of loans from the state of Missouri will be a big boost.”

Gov. Nixon signed the executive orders at a news conference in Jefferson City, where he was joined by Linda Martinez, the Director-designee of the Department of Economic Development.

Last month, Gov. Nixon announced the Show-Me JOBS Initiative, a bipartisan plan to get Missourians back to work and support small-business growth. Today’s executive orders include three of the proposals in the Governor’s Show-Me JOBS Initiative. The plan also calls for the expansion of the Missouri Quality Jobs Program, and creates incentives for worker training and re-training.