Brandom: Special Session Update

The last three weeks have been very busy for the Missouri General Assembly. Governor Nixon called all state legislators back to Jefferson City in late June for a Special Session. In his call for our return the Governor requested the passage of two pieces of legislation that failed to go through both houses during the last session.

The first bill, the Manufacturing Jobs Act [HB2], is designed to encourage in-state business growth through tax incentives for automobile manufactures and suppliers. Tax incentives have been a proven-effective way to create jobs in Missouri. Through the Manufacturing Jobs Act, auto manufacturing companies are able to keep half of the withholding taxes for each full time employee for seven years, but only if that company makes new investments in their infrastructure. Qualified companies must make a $75,000 investment per employee to take advantage of these benefits.

Currently, the Ford plant in Claycomo, Missouri is the oldest operating Ford plant. It employs 3,700 people and purchases from many, many Missouri suppliers. Ford anticipates retooling and eliminating the production of the Escape as it is presently known in order to produce their newest, state-of-the-art hybrid vehicle. To accomplish this production goal, Ford will need to make an investment of up to $400 million dollars in a facility.

As a result, Ford is being recruited by many other states and countries to produce this vehicle outside of Missouri. With 5.6% of Missourians employed in the automotive industry, the loss of a major manufacturing plant in the state would dramatically affect our overall economy.

It is my hope that the passage of the Manufacturing Jobs Act will encourage Ford and other manufactures to expand their production in Missouri and continue to add much needed jobs for our citizens.

The second piece of legislation, the Public Retirement Bill [HB1], changes the requirements for new state employees hired after January 1, 2011. These new employees will be required to contribute 4% of their salary to their own pension fund, instead of the state paying it for them- which is the current process. According to this legislation, 10 years of employment with the state is required before the employee can become vested in their retirement.

Further, to be eligible for normal retirement under this plan, employees must reach age sixty-seven and complete at least 10 years of service or reach age fifty-five with the sum of the employee's age and service equaling at least ninety.

The Public Retirement Bill will not affect current state employees and does not contain the controversial pension oversight board.

After three weeks of hard work, Special Session concluded last Wednesday with the passage of the Manufacturing Jobs Act and Public Retirement Legislation. We have put in place important legislation to help limit our budget expenses and stabilize our economy.

With Special Session now adjourned, I look forward to returning to the Capitol for Veto Session in the fall and continuing to serve the 160^th District.