Kraus: Special Extraordinary Session

The 2010 Special Extraordinary Session was not without its share of drama.  A three-week ordeal, we faced a potential showdown between the House and Senate, a 20-hour filibuster, and the resulting uncertainty on the outcome of the two bills that Gov. Nixon wanted passed.  And, of course, I was removed from the Jobs Creation Committee for refusing to guarantee my vote.  In the end, both bills were passed out of the General Assembly and both have been signed into law by Gov. Nixon.

Auto Manufacturing Tax Incentives

HB2 provided tax incentives specifically aimed at the auto manufacturing industry and its suppliers.  In brief, the bill allows tax credits for both the construction of a new product line as well as an existing product line if the company makes capitol investments and creates or retains jobs.  It limits the tax incentive amount to $10 million/year for any one qualified company and to a total of $15 million/year for all companies.  Any one company could receive up to $100 million over ten years.

It is vitally important for Missouri to keep and create jobs.  While I believe that it may be prudent to provide incentives to businesses to do this, I voted no on this particular piece of legislation because of my concerns for fiscal responsibility.  Some experts have predicted a budget shortfall next year of nearly $1 billion – due in main part to the fact that this year's budget uses that amount in one-time federal stimulus dollars for operating expenses. We cannot rely on stimulus money to balance our budget; we need to look at every single dollar we are spending and make tough choices.  Allowing one company up to $10 million a year is simply going in the wrong direction.

Changes in Pension System for New State Employees

The second bill, HB1, calls for new state employees to contribute 4 percent of their salary into their own retirement plan, starting with employees hired after January 1, 2011.  It also raises the retirement age for all new employees to 67 or 90-and-out and requires ten years of employment in order to be vested in the system.

I cannot stress enough that our state faces a budget crisis. Asking state employees to contribute toward their own retirement plan is a small, common sense step that we can take.  HB1 is projected to save the state over $6 million in the first year. That savings will multiply each year as future state employees are hired.

These savings are crucial to keeping our state retirement system solvent and our state finances viable in the future.  In contrast to Washington D.C., we must keep government in line with what we can afford.  Passing this bill is a step in the right direction and brings the state up to date with modern retirement plans.

Investment Board Language Removed

In the Senate, there was a move to include language in the pension bill that combined two state retirement investment boards, MOSERS and MPERS, but the investment board language was removed.  Also, the bill does not affect the retirement plans of current state employees.

Ethics Bill Signed into Law

Senate Bill 844 was signed into law by Gov. Nixon and becomes effective August 28, 2010. This bill contains numerous provisions related to conflict of interest, campaign finance, candidate disqualifications, late fees, and Missouri Ethics Commission investigations and enforcement. You can view a summary of the bill's provisions on the Commission's website.

I've made my views on this bill well known.  Although it was a start toward improving ethics standards at the Capitol, my expectations for it were higher and I truly believe that we could have passed a stronger bill.  It is something to work for in the future.

Host Families Needed for Four Exchange Students

Four foreign exchange students are looking for an area Host Family.  They are from Italy, Ukraine, Thailand, China, and Serbia.  All they need is a place to sleep and study, a place at the dinner table, and someone to share with them the American way of living.  In return, they will share their culture with Americans.  If you would like to share your home with someone from another country, please contact Liz Carver at 816-228-8587 or carver{underscore}elizabeth{at}yahoo{dot}com.

Closure at I-470/I-435 Due to Sink Hole Damage

Engineers at the Missouri Department of Transportation (MoDOT) have closed the westbound I-470 interchange to westbound I-435, as well as northbound Route 71 to westbound I-435 at 3 Trails Crossing. The damage from a sink hole at that location has expanded, making it necessary to immediately close the roadway.

MoDOT has posted detours, but encourages motorists to find the best alternative routes for their commute. This interchange will remain closed until repairs can be made. To help with detours, MoDOT created a website, linked from www.modot.org/kc, which includes each detour for the major traffic flow from the area. The site includes directions, maps and google mapping tools.

Soil and geology specialists from MoDOT are working to take soil core samples where the road collapsed on I-470.  Analyzing the results of the work will help engineers determine how to safely remove sections of the roadway and retaining wall. Preliminary findings from the geology study should be complete by mid-week.

With the ending of the 2010 Legislative Session, the Capitol Report will be issued about twice a month. During this time, if you have an event that you would like me to attend or speak at, please contact my office at 1 (573) 751-1459 or e-mail at will{dot}kraus{at}house{dot}mo{dot}gov.