Kraus: Economic Border War

In the past several years, I have received emails and phone calls from constituents who have asked me to do something to keep jobs in Missouri, as companies slipped just across the border after being enticed by incentives from the state of Kansas. These businesses were a great loss to Missouri, but I could only respond that “Kansas was able to offer a better package.”

On our side, Missouri does have its share of incentive programs, such as the Quality Jobs Act. But sometimes, they haven’t been enough, or been the right mix to keep a company from jumping the few miles into Kansas.

Recently, 17 executives from both sides of the border sent a letter (published in the Kansas City Star on April 12) to both governors that pointed out that what they called an “economic border war” was not good for the Kansas City community and an unproductive use of tax incentives. They urged that success be measured by attracting businesses and jobs from outside the area, “not from across the street.”

According to the Star, Kansas’ Governor Brownback has indicated no interest in coming to the table with any sort of cooperative agreement that would benefit both states. In the absence of such, Missouri simply has to be more aggressive in our efforts to retain and attract jobs, which is what we have worked on this session. Perhaps when the competition equals out, and it becomes clear that both state’s resources are being inefficiently used in a border war, Kansas will be forced to come to the table and work out a mutually beneficial agreement. This scenario would be most beneficial to those who need employment, as well as for taxpayers.

As I’ve noted before, one of my priorities this year is tax credit reform. It has become obvious that the only way to get true reform will be to combine it with an economic development bill. For that reason, I have co-sponsored Senate Bill 280, which combines the recommendations of the tax credit review committee with Compete Missouri, a new program to combine six existing economic development packages. I am also focused on job retention packages that are especially important to businesses in the Kansas City region. If Kansas chooses to compete, then we need to prepare for that fight.

Welcome Visitors

I was very pleased to be able to spend some time with members of the Lee’s Summit Chamber of Commerce, including President Nancy Bruns, and Vice-President Mark Dickey, on its day at the Capitol. In addition to updating the Chamber on legislative issues during lunch, I was able to meet with several members individually.

Julie Heidi, with the Lee's Summit Homeschool Educators, brought their students to the Capitol to learn about state government. It is always a special occasion to share knowledge with our young students.

Again this week, constituents from District 8 took the time to visit the Capitol, which I always appreciate. Some of the visitors were: Dr. Ed Kraemer, Jeffrey Smith, Ramsey Fowler, Donna Newland, Craig Faith, and Caroline McKee.

On Friday, I look forward to speaking to the Missouri State Affairs Committee of the Kansas City Chamber of Commerce on current legislative topics.