After substantially scaling it back, the General Assembly on May 7 finally approved a massive tax break to entice a Canadian airplane manufacturer to locate in Kansas City. The package of $240 million over eight years is far less than the $880 million over 22 years originally sought.
The tax incentive bill, HB 2393, is to encourage Bombardier Aerospace to build a $400 million assembly plant near Kansas City International Airport that would be expected to employ 2,100 people. However, passage of the measure, which awaits Gov. Matt Blunt’s signature, is no guarantee the company will put its plant in Missouri. The company has expressed its preference is to build the facility near its headquarters in Montreal, Quebec.
Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts
Friday, May 9, 2008
Thursday, July 12, 2007
SPECIAL SESSION POSSIBLE AS BLUNT VETOES ECO DEVO BILL
In a surprise move, Gov. Matt Blunt on July 6 vetoed an omnibus economic development bill that would have cost the state at least $200 million a year and perhaps substantially more. The governor’s action could prompt a special legislative session in September to pass a scaled-back version on the bill.
The governor originally proposed HB 327 to expand the amount of tax credits available under the Quality Jobs program the General Assembly enacted in 2005. The legislature, in particular the Senate, loaded up the bill with all manner of additional tax breaks for various special interests, including $100 million over several years for a single St. Louis-area developer.
In addition to the cost, Blunt cited numerous flaws in the bill among his reasons for vetoing it and said many of the proposed tax breaks would have done little to improve the state’s economy. Blunt said he’s willing to call a special session on the issue if legislative leaders agree on a package that costs $50 million to $70 million. House Speaker Rod Jetton, R-Marble Hill, seemed cool to the idea in telling The Associated Press: “I would vote to override that veto.” An override, however, appears unlikely. “I am not interested in overriding the governor,” Senate President Tem Michael Gibbons, R-Kirkwood, said.
The governor originally proposed HB 327 to expand the amount of tax credits available under the Quality Jobs program the General Assembly enacted in 2005. The legislature, in particular the Senate, loaded up the bill with all manner of additional tax breaks for various special interests, including $100 million over several years for a single St. Louis-area developer.
In addition to the cost, Blunt cited numerous flaws in the bill among his reasons for vetoing it and said many of the proposed tax breaks would have done little to improve the state’s economy. Blunt said he’s willing to call a special session on the issue if legislative leaders agree on a package that costs $50 million to $70 million. House Speaker Rod Jetton, R-Marble Hill, seemed cool to the idea in telling The Associated Press: “I would vote to override that veto.” An override, however, appears unlikely. “I am not interested in overriding the governor,” Senate President Tem Michael Gibbons, R-Kirkwood, said.
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