January 5, 2010
Plan would make growth of existing Missouri employers first priority for economic development
Gov. Nixon announces plan to retool economic incentive programs to spark growth of Missouri businesses
KANSAS CITY, Mo. - Helping existing Missouri businesses grow is the fastest and most reliable way to create jobs and jumpstart the state's economy, Gov. Jay Nixon said today during tours of major employers in Kansas City and Springfield.
Accomplishing that goal is what the Governor's new "Missouri First" initiative is all about.
Under Missouri First, the state will retool its economic incentive programs to provide an additional incentive to companies that already are located and employ workers in the Show-Me State and are considering expansion. Currently, Missouri's economic tools make no distinction between a long-time Missouri employer and an out-of-state company considering relocation.
Gov. Nixon said acknowledging and rewarding the loyalty of existing Missouri employers is of paramount importance for economic growth.
"As we look for ways to create jobs and transform our economy, it's critical that we acknowledge and support businesses that are already making a difference by employing folks here in Missouri," Gov. Nixon said. "My administration will continue to be absolutely relentless in competing to bring new jobs and new investment to our state, but we're going to be equally driven to help our existing Missouri businesses create jobs. By retooling these economic incentives to focus on growing our existing businesses, as well as attracting new companies, we'll be positioning Missouri to prosper in the years to come."
Missouri First is the third major component of Gov. Nixon's comprehensive jobs package for 2010. The package also includes the Missouri Science and Innovation Reinvestment Act (MOSIRA), which will create a dedicated fund to help attract and grow high-tech businesses in the state, and Training for Tomorrow, an initiative that will invest $12 million in educating Missourians for in-demand careers at Missouri's community colleges.
Here's how Missouri First will work:
Under current law, businesses currently are eligible to apply for a variety of state economic incentives if they plan to either expand operations within Missouri or relocate from another state. These incentives are subject to a specific cap per business per year, with no distinction between existing Missouri employers and out-of-state businesses.
In fact, some out-of-state businesses could be eligible for larger overall incentives than existing Missouri businesses because of additional economic tools that are available to help companies relocate to the state. Such additional incentives often help defray the costs of constructing roads and other major infrastructure items that are necessary to prepare property for a business' relocation.
Missouri First would change the law regulating certain incentives to authorize the Department of Economic Development to provide additional resources to existing businesses that are considering expansions in the state. Specifically, the Department would be allowed to increase the incentive cap for businesses that have had a presence in Missouri for at least five years. The Department would be able to increase the cap by up to 2 percent of the total incentive amount for each five-year increment the company has been located in Missouri - up to 10 percent of the total incentive for companies that have been in Missouri for 25 years or more.
Missouri First would apply to a number of state economic incentive programs, including Quality Jobs and Enhanced Enterprise Zone, as well the New Job Training, Retained Job Training, and Customized Training programs.
While this initiative will provide additional resources to existing Missouri businesses, it will not increase the overall size of any economic incentive programs. In addition to a per-business cap on the amount any one company can receive, each state economic incentive program also is subject to an overall per-year cap. Missouri First will allow the Department of Economic Development to increase the per-business cap in some cases, but the overall per-year caps remain unchanged.
"All across our state, our economy is driven by businesses that have employed Missourians for years, if not for generations," Gov. Nixon said. "These businesses have been a vital part of Missouri's past, and we must make sure they continue to be an integral part of our future. By providing these additional incentives for growth, we'll help these loyal Missouri businesses expand and create the jobs of tomorrow. Together, we'll get Missourians back to work and turn this economy around."
The Missouri First legislation will be sponsored in the Senate by State Sen. John Griesheimer (R-Washington) and in the House by State Rep. Tim Flook (R-Liberty) and State Rep. Sam Komo (D-House Springs).
The Governor announced the Missouri First initiative during tours of DST Output in Kansas City and American Dehydrated Foods in Springfield. Gov. Nixon will tour additional long-standing Missouri businesses to detail this initiative in the days to come.