While the House of Representatives endorsed giving up to $880 million in tax breaks over 22 years to a Canadian airplane manufacturer, a similar bill remains stalled in the Senate after several days of debate. The legislation is a key part of the state’s effort to convince Bombardier Aerospace to build passenger jets in Kansas City.
The House gave preliminary approval to its bill on April 15. Supporters of the bill say the positive impact on Missouri’s economy if Bombardier were to locate here is worth the cost of what is likely the largest package of tax breaks the state has ever offered for a single project. However, Bombardier has stated its first preference is to build the planes in its home country. Opponents say the offer is overly generous and would subject the state to substantial financial risk. The bills are HB 2393 and SB 1234.
Thursday, April 17, 2008
BLUNT CLAIMS ‘ABSOLUTE PRIVELEGE’ FROM LAWSUIT
Gov. Matt Blunt is asserting his office provides him an “absolute privilege” against liability in a pending defamation and wrongful termination lawsuit filed against him by a former employee, the St. Louis Post-Dispatch reported on April 15. In court documents related to the case, Blunt claims the privilege applies even if he made “intentionally false statements” about the employee.
Scott Eckersley, the governor’s former deputy counsel, is suing the governor and several top current or former administrator officials over Eckersley’s dismissal last fall. Eckersley says he was fired for pointing out the administration’s repeated violations of state open records and retention laws. Following the firing, key administration officials launched a smear campaign to discredit Eckersley. The Blunt administration’s claims about Eckersley quickly were debunked in news reports.
Scott Eckersley, the governor’s former deputy counsel, is suing the governor and several top current or former administrator officials over Eckersley’s dismissal last fall. Eckersley says he was fired for pointing out the administration’s repeated violations of state open records and retention laws. Following the firing, key administration officials launched a smear campaign to discredit Eckersley. The Blunt administration’s claims about Eckersley quickly were debunked in news reports.
ETHICS NOMINEE LINKED TO BLUNT FAMILY WITHDRAWS
Jefferson City attorney Michael Shmid, whom Gov. Matt Blunt appointed to a Democratic seat on the Missouri Ethics Commission, has asked that his appointment be withdrawn after the state Democratic Party questioned his party affiliation. The law requires the six-member commission to have equal numbers of Democrats and Republicans.
Shmid is an associate in the Schreimann, Rackers, Franka and Blunt law firm. Andy Blunt, the Republican governor’s brother, is a partner in the firm. The governor neglected to mention Schmid’s connection to the Blunt family when he announced the appointment on April 9.
Shmid is an associate in the Schreimann, Rackers, Franka and Blunt law firm. Andy Blunt, the Republican governor’s brother, is a partner in the firm. The governor neglected to mention Schmid’s connection to the Blunt family when he announced the appointment on April 9.
NEW MISSOURI LICENSE PLATES COMING IN JUNE
Missouri will begin phasing in new vehicle license plates this summer. The new plates will feature a bluebird, the state bird, sitting on a hawthorn branch, the state floral emblem. The new design will replace the current Missouri plates that have been in use since 1997.
Motorists who renew their vehicle registrations after June 16 will receive the new plates, which will cost an additional $2.78 per set over the current cost for standard plates. Personalized plates will cost an additional $4.25 per set.
Motorists who renew their vehicle registrations after June 16 will receive the new plates, which will cost an additional $2.78 per set over the current cost for standard plates. Personalized plates will cost an additional $4.25 per set.
Thursday, April 10, 2008
PSC CHAIRMAN PLAYED KEY ROLE IN PRO-INDUSTRY BILL
During testimony before a legislative committee on April 1, Public Service Commission Chairman Jeff Davis took credit for helping utility companies draft 2005 legislation, which later became law, that critics said hurt consumers while increasing profits for the companies. The revelation, reported by the St. Louis Post-Dispatch in an April 4 story, raised further questions about Davis’ impartiality as a member of the PSC, which regulates utility companies.
Davis had previously been accused of a conflict of interest for participating in a private meeting in the governor’s office with AmerenUE officials -- including their then-lobbyist Andy Blunt, the governor’s brother -- in 2006 while a rate increase sought by the company was pending before the PSC. In 2007, an e-mail from Aquila Inc. official became public that indicated Davis privately had assured company officials he supported a proposed merger with another company, which was subject to PSC approval.
Davis had previously been accused of a conflict of interest for participating in a private meeting in the governor’s office with AmerenUE officials -- including their then-lobbyist Andy Blunt, the governor’s brother -- in 2006 while a rate increase sought by the company was pending before the PSC. In 2007, an e-mail from Aquila Inc. official became public that indicated Davis privately had assured company officials he supported a proposed merger with another company, which was subject to PSC approval.
HOUSE VOTES TO DEFY FEDERAL GOVERNMENT ON REAL ID
The House of Representatives on April 10 sent to the Senate a bill to prohibit the state from complying with the federal Real ID act, which critics say imposes expensive requirements on states and violates the privacy of citizens. Congress passed the law in 2005 but immediately encountered resistance from state governments.
Six states – Oklahoma, Maine, Montana, New Hampshire, South Carolina and Washington – have already enacted laws prohibiting implementation of Real ID. At least 11 other states, including Missouri, are considering similar legislation. The combined cost to the states of implementing Real ID is estimated at $3.9 billion.
The U.S. Department of Homeland Security has warned states that if they do not comply their residents will be barred from entering federal buildings or boarding airplanes. Critics say that is a hollow threat since it would mean the de facto closure of all federal buildings and airports in those states. The Missouri bill is HB 1716.
Six states – Oklahoma, Maine, Montana, New Hampshire, South Carolina and Washington – have already enacted laws prohibiting implementation of Real ID. At least 11 other states, including Missouri, are considering similar legislation. The combined cost to the states of implementing Real ID is estimated at $3.9 billion.
The U.S. Department of Homeland Security has warned states that if they do not comply their residents will be barred from entering federal buildings or boarding airplanes. Critics say that is a hollow threat since it would mean the de facto closure of all federal buildings and airports in those states. The Missouri bill is HB 1716.
BLUNT NAMES EMPLOYEE OF BROTHER TO ETHICS PANEL
Gov. Matt Blunt on April 9 appointed to the Missouri Ethics Commission an associate attorney of the law firm in which Andy Blunt, the governor’s brother, is a partner. If confirmed by the Senate, Michael Schmid, a lawyer with the Jefferson City firm of Schreimann, Rackers, Franka and Blunt, will hold a Democratic slot on the commission. The news release from the governor’s office announcing Schmid’s appointment neglected to mention the Blunt family connection.
Democrats and Republicans are required by law to hold equal numbers of seats on the six-member commission. Under the law, congressional district committees of the political party for which there is a vacancy nominate candidates for the commission. Democratic Party spokesman Jack Cardetti told The Associated Press said Schmid wasn’t nominated by the party. However, the two Democrats who were nominated withdrew due to professional conflicts. As a result, Blunt was free under the law to appoint a nominee of his own choosing.
Cardetti questioned Schimd’s Democratic credentials. Schmid donated $250 to Democratic Attorney General Jay Nixon’s gubernatorial campaign on April 1 and told the AP he made the donation, in part, to establish Democratic credentials in advance of his anticipated appointment.
Democrats and Republicans are required by law to hold equal numbers of seats on the six-member commission. Under the law, congressional district committees of the political party for which there is a vacancy nominate candidates for the commission. Democratic Party spokesman Jack Cardetti told The Associated Press said Schmid wasn’t nominated by the party. However, the two Democrats who were nominated withdrew due to professional conflicts. As a result, Blunt was free under the law to appoint a nominee of his own choosing.
Cardetti questioned Schimd’s Democratic credentials. Schmid donated $250 to Democratic Attorney General Jay Nixon’s gubernatorial campaign on April 1 and told the AP he made the donation, in part, to establish Democratic credentials in advance of his anticipated appointment.
HOUSE REJECTS SCHOOL VOUCHER PROPOSAL
The House of Representatives on April 9 voted 80-58 to strip a private school voucher provision from a bill to raise minimum teacher salaries. As a result, House Majority Leader Steve Tilley, R-Perryville, told The Associated Press he will not allow a final vote on the measure. “That bill will not see the light of day,” Tilley said.
The voucher provision of HB 2040 would have granted tax breaks to donors to a scholarship fund for children with autism or other special needs to attend private or parochial schools. Opponents called the bill a thinly veiled attempt to open the door to taxpayer support of private and parochial schools to the detriment of public school funding. State Rep. Maynard Wallace, R-Thornfield, sponsored the amendment to remove the voucher provision.
The teacher salary component of the overall bill, which was sponsored by House Speaker Rod Jetton, R-Marble Hill, purported to increase the minimum teacher salary to $31,000 a year from the current $24,000. However, no money was appropriated for the increase.
The voucher provision of HB 2040 would have granted tax breaks to donors to a scholarship fund for children with autism or other special needs to attend private or parochial schools. Opponents called the bill a thinly veiled attempt to open the door to taxpayer support of private and parochial schools to the detriment of public school funding. State Rep. Maynard Wallace, R-Thornfield, sponsored the amendment to remove the voucher provision.
The teacher salary component of the overall bill, which was sponsored by House Speaker Rod Jetton, R-Marble Hill, purported to increase the minimum teacher salary to $31,000 a year from the current $24,000. However, no money was appropriated for the increase.
HOUSE PROPOSES AMENDMENT TO RESTRICT SPENDING
On an 84-65 vote, the House of Representatives on April 10 approved a proposed constitutional amendment that would severely restrict state spending. If also approved by the Senate, the measure would go before Missouri voters on the November ballot.
HJR 70 sponsored by House Budget Chairman Alan Icet, R-Wildwood, would limit annual growth in general revenue spending to the rate of inflation with a further adjustment for population increases. Supporters say the amendment is needed to further control state spending. Opponents counter that it would hamstring the ability of government to provide necessary state services. Colorado suspended a similar constitutional provision after it caused a state budget crisis.
HJR 70 sponsored by House Budget Chairman Alan Icet, R-Wildwood, would limit annual growth in general revenue spending to the rate of inflation with a further adjustment for population increases. Supporters say the amendment is needed to further control state spending. Opponents counter that it would hamstring the ability of government to provide necessary state services. Colorado suspended a similar constitutional provision after it caused a state budget crisis.
HOUSE APPROVES M0RATORIUM ON NEW CASINOS
The Missouri Gaming Commission would be prohibited from licensing any new casinos until 2010 under legislation that won first-round House approval on April 2. Supporters say the moratorium is needed to gage the strength of the gambling market, particularly in the Kansas City area, where Missouri casinos will soon face competition from new facilities in Kansas.
As currently written, however, HB 1929 would prevent the licensing of casino that is already under construction in St. Louis County. When the Gaming Commission approves a new casino it doesn’t issue a license until after construction in completed.
The bill’s sponsor, state Rep. Shannon Cooper, R-Clinton, said he will seek changes so the St. Louis facility isn’t affected. Opponents of the bill say the market – not an arbitrary limit imposed by the state – should determine how many casinos operate in Missouri.
As currently written, however, HB 1929 would prevent the licensing of casino that is already under construction in St. Louis County. When the Gaming Commission approves a new casino it doesn’t issue a license until after construction in completed.
The bill’s sponsor, state Rep. Shannon Cooper, R-Clinton, said he will seek changes so the St. Louis facility isn’t affected. Opponents of the bill say the market – not an arbitrary limit imposed by the state – should determine how many casinos operate in Missouri.
HOUSE NARROWLY APPROVES LIMITING POWER OF COURTS
With the bare minimum number of votes required, the House of Representatives on April 3 voted 82-68 in favor of a proposed constitutional amendment that would limit the authority of state courts. Majority House Republicans shut down debate to force the vote after more than an hour of discussion.
HJR 41 sponsored by state Rep. Jane Cunningham, R-Chesterfield, would prohibit state judges from ruling in cases involving taxation. Supporters say it would prevent judges from imposing tax increases, something a Missouri judges have never done as they are already prohibited from doing so by the state constitution. Opponents say it will prevent Missourians from seeking redress in state courts in legitimate disputes involving taxation.
The measure now goes to the Senate, which hasn’t acted on previous attempts by the House to strip state courts of authority. If the proposal does clear the Senate, it would go on the statewide ballot in November.
HJR 41 sponsored by state Rep. Jane Cunningham, R-Chesterfield, would prohibit state judges from ruling in cases involving taxation. Supporters say it would prevent judges from imposing tax increases, something a Missouri judges have never done as they are already prohibited from doing so by the state constitution. Opponents say it will prevent Missourians from seeking redress in state courts in legitimate disputes involving taxation.
The measure now goes to the Senate, which hasn’t acted on previous attempts by the House to strip state courts of authority. If the proposal does clear the Senate, it would go on the statewide ballot in November.
MOTORCYCLE HELMET LAW REPEAL WINS HOUSE APPROVAL
In what has become an annual ritual, the House of Representatives on April 3 approved a bill to repeal Missouri’s motorcycle helmet law for riders age 21 and older. The bill typically passes each year in the House, where most lawmakers believe wearing a helmet should be a personal choice and not a government mandate, only to be blocked in the Senate by safety advocates. The House sent the measure, HB 1393, to the Senate on 94-52 vote.
SENATE ENDORSES BILL TO CRACK DOWN ON IMMIGRATION
The Senate on April 3 voted 26-7 in favor of a wide-ranging legislative package intended to crack down on illegal immigration. The bill, SB 858, now heads to the House of Representatives. Provisions of the bill include prohibiting illegal immigrants from receiving most forms of state assistance, barring them attending public colleges and universities in most cases, requiring police to check the immigration status of arrestees and punishing businesses for knowingly employing illegal workers.
HOUSE PASSES PROPOSED AMENDMENT TO LIMIT TAXES
The House of Representatives on April voted 133-19 in favor a proposed constitutional amendment that would require local governments to roll back their property tax levies following reassessment. If approved by the Senate, the measure would go on the statewide ballot in November.
Property reassessment occurs every two years. An existing constitutional provision seeks to prevent taxing jurisdictions from profiting from rising property values by requiring them to reduce their tax rates so they collect about the same amount of money as they did before reassessment, not counting the value of new construction and an inflationary adjustment. Because many jurisdictions are below their maximum authorized tax rates due to past rollbacks, however, some jurisdictions decline to reduce their rates further, resulting in higher taxes for property owners.
HJR 43 sponsored by state Rep. Chuck Portwood, R-Ballwin, would require taxing jurisdictions to roll back from the actual rate they were charging prior to reassessment instead of the higher authorized rate to close what supporters view as a constitutional loophole. Opponents say it would cost financially strapped local governments and school districts millions of dollars in tax revenue.
Property reassessment occurs every two years. An existing constitutional provision seeks to prevent taxing jurisdictions from profiting from rising property values by requiring them to reduce their tax rates so they collect about the same amount of money as they did before reassessment, not counting the value of new construction and an inflationary adjustment. Because many jurisdictions are below their maximum authorized tax rates due to past rollbacks, however, some jurisdictions decline to reduce their rates further, resulting in higher taxes for property owners.
HJR 43 sponsored by state Rep. Chuck Portwood, R-Ballwin, would require taxing jurisdictions to roll back from the actual rate they were charging prior to reassessment instead of the higher authorized rate to close what supporters view as a constitutional loophole. Opponents say it would cost financially strapped local governments and school districts millions of dollars in tax revenue.
Thursday, March 27, 2008
SUPREME COURT UPHOLDS USE OF EMINENT DOMAIN
In a decision that essentially maintains the status quo, the Missouri Supreme Court ruled 6-1 on March 18 that all Missouri municipalities may use eminent domain to aid in the redevelopment of blighted property. The decision overturned a circuit court's ruling that under the Missouri Constitution only charter cities can use eminent domain for redevelopment.The case was brought Homer Tourkakis, an Arnold dentist challenging the city's effort to seize his office as part of a larger redevelopment. Because the constitution specifically says that charter cities can use eminent domain to combat blight but does not grant such power to non-charter cities, Tourkakis argued Arnold, a non-charter city, lacked the authority to take his property.
Charter cities derive their power from the Missouri Constitution, while non-charter cities have only those powers that the General Assembly gives them. The court's majority ruled that non-charter cities are authorized to use eminent domain for redevelopment under the state's tax increment financing statute.
The court's decision, however, doesn't necessarily mean Tourkakis will lose his property. In a 2007 ruling, the court made it more difficult for cities to prove blight, a necessary finding for using eminent domain for redevelopment. Previously cities had to show a property was either an economic liability (the property isn't generating as much tax revenue as it could if redeveloped) or a social liability (the property is conducive to crime or threatens public health). Cities now have to prove both factors to establish blight. As a result, Arnold might be hard-pressed to prove a dentist's office causes crime or is a public health threat.
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