Dugger: Small Business Relief, State of the State Address

This week at the state capitol we passed our first full piece of legislation, HB 45. This legislation was aimed directly at small businesses in Missouri. In fact, through the committee process and on the floor we heard that there are over 100,000 small businesses in the Show Me state and employees in those businesses account for 60% of employment. Those numbers just go to show how important entrepreneurs and everyday Missourians are to our economy.

The primary function of HB 45 was to incentivize small businesses to hire new people and grow their businesses. For instance, we extended the definition of a small business by taking it from 25 employees to 50 employees. We also extended a tax deduction for these new small businesses if they hire new employees at the average annual county wage and doubled it if they also offer to pay for 50% of the new employee’s healthcare benefits. In total the value of the deduction is $10,000 per new employee hired or $20,000 per new employee if they offer the benefits.

However, perhaps the most important provision in the bill stated that any new rules, fees, or mandates passed by the federal government must first be approved by our general assembly.

“Wherever you go, no matter the weather; always bring you own sunshine” – Anthony J. D’Angelo

Governor’s State of the State Address

This week Gov. Jay Nixon gave his annual State of the State address. There were a few key things that stood out in my mind as I listened to our chief executive.

First, and foremost I was glad that he joined the House Republicans call in the Show Me Solutions Initiative to make state government live within its means by keeping spending and taxes under control.

I was also glad to hear the Governor talk about extending the A+ program to more high schools so Missouri children have a better opportunity to receive a college education.

However, the Governor spent a great deal of himself talking about personal accomplishments relating to job creation over the past year. While we may have some things to celebrate our unemployment rate is still at 9.5% and many of our surrounding states are faring better than we are in that category.

In fact, a number of the accomplishments the Governor touted were actually initiated before he was even elected and the actual impacts of some of his claims have yet to be seen. What it really boils down to is that I don’t believe Missourians were interested in hearing the Governor pat himself on the back. Missourians know we are facing real problems and need real solutions and those solutions are for the future of Missouri not championing the past.

For instance, one of the key fundamental differences that became apparent in the Governor’s speech was his stance on economic development. He spent a great deal of time talking about programs he has championed and how he wants to use those programs to improve things in the future. Well, as I said unemployment is still at 9.5%, so I don’t know that I believe tweaking, consolidating, or adding programs is the best economic development policy. Instead, House Republicans have proposed bills aimed at changing the overall business climate in Missouri like reducing regulations, fees, and taxes; cutting down on lawsuits, and providing a more stable environment for small businesses – not just big business to grow.

Governor Nixon suggested that K-12 schools will see level funding. With everything, the devil's in the details. The Governor's statement is incumbent upon schools to sit on over $112M in new dollars until next fiscal year, a decision that will be made across 522 school districts statewide. Obviously, as school districts continue to struggle, it will be hard for them to sit on a cash balance as they continue to cope with lower local contributions and a withhold by the Governor of over $62M in school transportation funds. Regardless, under the current plan by the Governor, there will most certainly be less appropriated to schools next year, which will change the way funds are distributed through the formula setting the stage for 'who loses the most'.