May 20, 2013

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Sponsor: legislature won’t try to override Governor’s veto of use tax bill

April 19, 2013 By

For the second straight year, Governor Jay Nixon has vetoed a bill to address the charging of taxes on vehicles purchased out-of-state.

Senator Mike Kehoe (R-Jefferson City). Photo courtesy, Missouri State Senate Communications.

Senator Mike Kehoe (R-Jefferson City). Photo courtesy, Missouri State Senate Communications.

Nixon says Senate Bill 182 doesn’t give voters the opportunity to address all the changes that would make in local and state taxes they have to pay. The bill’s sponsor, Senator Mike Kehoe (R-Jefferson City) says he’s disappointed with the Nixon Administration’s assessment.

“We presented them with many versions of this bill that just didn’t come out earlier. I’m not an attorney but other folks who have looked at this feel like their concerns are addressed in other areas of the bill, so it certainly wasn’t an intentional thing.”

See the Governor’s veto message.

Though Kehoe’s Republican party has a supermajority in both the House and the Senate, he says a veto overturn will not be attempted.

“I’m going to do what I think is best for Missouri small businesses and municipalities, and I think that’s not let this get caught up in politics, which, sometimes a veto override can get very political. The Governor’s office has promised they would give us some suggested language to ease their concerns by Monday. I’m going to incorporate those changes and then find a bill that’s moving … a vehicle, if you will … that’s moving somewhere where those changes will fit on and try to get it [passed this session].”

He thinks it’s important the issue be resolved this year.

“Every day that goes by, we’re losing sales to competing states. Municipalities are losing tax revenues, and the more that sales start to go to other states, the jobs will follow, and so it’s very important.”

Kehoe thinks there is enough support to get the legislation through again. SB 182 passed the Senate unanimously and passed out of the House 123-32.

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House holds first hearing on proposed bond issuance (AUDIO)

February 6, 2013 By

The Committee that will put together the state House’s version of a bonding proposal has heard its first testimony.

From right, the new House Appropriations Committee on Infrastructure and Job Creation's Chairman Chris Kelly and Vice-Chairman Lincoln Hough listen to the committee's first testimony. (Photo courtesy; Tim Bommel, Missouri House Communications.)

From right, the new House Appropriations Committee on Infrastructure and Job Creation’s Chairman Chris Kelly and Vice-Chairman Lincoln Hough listen to the committee’s first testimony. (Photo courtesy; Tim Bommel, Missouri House Communications.)

The proposal, HJR 14, has been introduced at $950 million dollars and is described as identical to one introduced in the Senate by Senator Kurt Schaefer (R-Columbia). Lawmakers say that figure could change however, either higher or lower.

The measure is sponsored in the House by Speaker Tim Jones (R-Eureka), who says it will change dramatically before it goes before voters.

“This is simply a starting off point. I’m sure this bill will undergo a lot of different changes and revisions throughout the process. We will have to marry it with whatever comes out of the Senate, so I would ask everybody to keep an open mind and be patient as we work through this. This is an extremely critical opportunity for our state but it is one that I think could result in a really bold and bright future for Missourians.”

Mental Health Department a no-show

In talking about possible targets for proceeds from a bond issuance, Jones, Governor Jay Nixon, Committee Chairman Chris Kelly (D-Columbia) and others have all said Fulton State Mental Hospital is likely to be included. Yet at Tuesday’s hearing the agency that oversees that facility, the Department of Mental Health, was not present as scheduled.

Kelly says he is disappointed the Nixon administration did not see fit to discuss the needs at Fulton, but says the no-show doesn’t hurt that hospital’s chances to be a priority.

“We all know the need is there, and it’s ridiculous to think about punishing the mental health patients because the administration doesn’t articulate it.”

Lawmakers will have to come to agreement on how much to spend on Fulton. Some have said a total replacement is needed, while others say that probably won’t happen.

It is estimated that a new mental health facility would cost about $211 million. The current language of the proposal says no more than $250 million will be used for construction of state buildings and $40 million of that must be used for parks and park facilities.

Mixing transportation with other needs

The hearing was held on the same day that a 10-year, one-cent sales/use tax proposal was introduced by Senators Mike Kehoe (R-Jefferson City) and Ryan McKenna (D-Crystal City) and Representative Dave Hinson (R-St. Clair) to support transportation. Kelly hopes the two issues can compliment each other.

“I believe that ultimately we can only have one proposal and I hope we find a way to comfortably combine the highway proposal and the general revenue proposal, and I believe we can do that.”

Jones says the two discussions could become one, but says he would rather see a revenue-neutral option to support transportation.  Some transportation projects could also be included in the bond package.

Much of the testimony came from some of the state’s colleges and universities, who told the committee how great their backlog of needs has grown.

University of Missouri System President Tim Wolfe testifies on HJR 14, sponsored by House Speaker Tim Jones (right). (Photo courtesy; Tim Bommel, Missouri House Communications.)

University of Missouri System President Tim Wolfe testifies on HJR 14, sponsored by House Speaker Tim Jones (right). (Photo courtesy; Tim Bommel, Missouri House Communications.)

University of Missouri System President Tim Wolfe tells lawmakers, his campuses could use all the $950 million being considered, and more.

“Because we’ve been chosen to invest scarce resources in mission-critical areas like education today we have a $1.3 billion backlog of renovation and repair projects on all four of our campuses.”

Wolfe says state support from the bonding package would encourage donors to the University system to accelerate their investments.

Missouri Parks Association board member Mike Sutherland told the Committee there are about $400 million in capital improvement needs at the state’s parks and historic sites.

Kelly cautioned those at the hearing that no one will get everything they want.

“Every single one of us will be disappointed, but every single one of us will also be delighted. There’s no way that we can do everything that we need to do but we can do some very good things and move our economy forward.”

See our earlier stories on bonding in the 2013 session.

No one testified against the proposal, which Vice-Chairman Lincoln Hough (R-Springfield) says shows there is bi-partisan support across the state for the issuance of bonds. One urged lawmakers to make sure to identify cost savings or a new revenue source to fund the debt service on bonds, to protect other state services like K-12 education, higher education and public safety.

Jones told the committee taxpayers will be protected under the proposal.

“By specifying that the proceeds from the sale of the bond can be only used for projects that meet the criteria of this legislation. Most notably that criteria will first be established by this committee. Additionally the revenue placed in the Fifth State Building Fund, as we’re commonly referring to this bill, can only be used to pay off the principal and interest of the bond.”

He encouraged the committee to investigate a “more official mechanism,” a sort of “taxpayer watchdog,” to watch the projects as they move forward.

As for when the bond proposal might be ready to go to voters, Kelly says he would like to see it done this year but says it’s an “organic” process. Jones says he knows development will take time.

“I am under no delusions that this is going to be an easy process, so I start with the premise that this may be a 2-year project.”

AUDIO:  House Speaker Tim Jones presents HJR 14, Missouri Fifth State Bonding Issue, 6:38

AUDIO:  University of Missouri System President Tim Wolfe testifies on HJR 14, 6:30

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Lawmakers will debate including transportation in a bond proposal

December 18, 2012 By

More than one bond proposal will be debated in the state legislature in the session that begins in three weeks. The list of projects those would fund has not been determined, and some supporters want it to include some highway and bridge work.

Senator Mike Kehoe (R-Jefferson City). Photo courtesy, Missouri State Senate Communications.

Senator Mike Kehoe (R-Jefferson City) is the vice-chairman of the Senate Transportation Committee. He says the costs of transportation are too high to include in those proposals, that would ask Missourians to approve the sale of $950 million in bonds.

“The resources contained within the bond dollar amounts … that they’ve filed could be more appropriate and a better value if we concentrated that more on structures.”

Kehoe says other ideas are being floated that could benefit the state’s highway system.

“Senator (John) Lamping has filed a tax reform package and part of that package is going to include language in it that would potentially look at some type of sales tax increase with an offsetting taxpayer refund, so that would keep it cost-neutral to the citizens. There is an independent group, Missouri Transportation Alliance, who have worked very hard in the state for the last several years that are proposing a couple of the other different options for Missourians to look at as far as funding or resources for transportation.”

Kehoe says now is a good time for passage of a new funding plan for roads, bridges and railways for the same reason bonding issue proponents say the time is right to approve those: interest rates on money are at an all-time low.

He wants to see a plan approved that will provide stable, long-term funding and hold the Department of Transportation accountable.

“I would prefer a plan that has something that meets the needs of the transportation system that has some type of sunset mechanism so that citizens can feel like there’s an opportunity to check in every so often and make sure that the dollars that they devote to transportation and infrastructure are being spent wisely, and that the projects are being done according to the time and budget needs of the various communities.”

Kehoe adds, Missouri could soon have to put up more money to keep getting its current level of federal money.

“The newest (federal) reauthorization bill has some trigger mechanisms in it where the State of Missouri’s match to get some of the federal dollars is going to continue to go up a little bit, so three and four years from now, just our match to get to the dollars that we get from the feds today is going to become significantly higher.”

The session begins January 9.

AUDIO:  Mike Lear interviews Mike Kehoe, 9:10

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Capitol, Fulton State Hospital, colleges and universities, highways all possible targets for proposed bond issue proceeds

December 12, 2012 By

A proposed constitutional amendment has been filed in the Senate that would ask voters to approve almost $1 billion in bonds to use on the state’s infrastructure.

State legislators could designate the Missouri State Capitol Building in Jefferson City as one facility to use proceeds from the sale of bonds on, if those legislators and voters approve a new bond issue. (Photo courtesy: Missouri House Communications.)

Its sponsor, Senator Kurt Schaefer (R-Columbia) says now could be a better time to issue new bonds than will come for generations.

“Interest rates are so much lower now that basically for the same cost of what it cost us to borrow $600 million dollars back in the early (1980s) we could borrow $1 billion now with basically the same payoff cost because interest rates are simply so much lower, and who knows how much longer that will continue?”

Missouri has just finished paying off the bonds Schaefer refers to, approved by a majority 51 percent of Missouri voters in June, 1982 that paid for improvements to state buildings, parks and various projects like water and sewer systems, highways, rail lines and soil erosion projects.

What would the bonds pay for?

Schaefer says if approved, this bond proposal would take a similar timeframe, 25 to 30 years to pay off. As for what projects it would target, he says he has intentionally worded the bill broadly so that lawmakers can sort that out during debate.

Representative Chris Kelly (R-Columbia) will handle the bonding bill in the House. He says one likely use for bonds would be on top priority projects at each of the state’s colleges and universities.

“In many of the community colleges that’s health-related projects: training nurses, training various types of medical technicians. At the University of Missouri it’s the engineering school. At (the University of Missouri St. Louis) I think it’s the nursing school.”

Schaefer says the Fulton State Hospital needs some serious attention, for multiple reasons.

“Handling and treatment of people that are there, safety of the workers that are there … on a number of levels it really is an antiquated facility and there’s a good question of whether or not you can even modify that facility in such a way that addresses those things … or you look at a new facility.”

Also high on the list is the State Capitol Building in Jefferson City.

Kelly says, “The Capitol Building is literally a national treasure and it’s 100 years old. It’s very important that we do work to refurbish the state Capitol also.”

Schaefer adds, “At the Capitol it’s not just cosmetic, it’s structural. We’ve been putting some of those things off now for … in some of those issues, a couple decades … and if you don’t address some of those structural issues you’re going to get to a point where it may even be cost-prohibitive to do some of those repairs down the road.”

Senator Kurt Schaefer (R-Columbia) and Representative Chris Kelly (D-Columbia) will handle bonding proposals in their respective chambers. (Pictures courtesy: Tim Bommel, Missouri House Communications.)

The transportation question

A question hanging over the bonding issue at this stage is how transportation might be handled. Kelly wants highways included, but says it might have to go in a separate measure.

“I think most people agree that we have the work in both the regular state capital plant and in the highway stuff. The question is, ‘Can we and should we marry them?’”

Senator Mike Kehoe (R-Jefferson City) is the vice-chairman of the Senate Transportation Committee. He says transportation funding should be in a separate measure because the amount of money it requires would leave little out of a $1 billion bond issue for anything else.

“Proper funding of our highway department takes somewhere right now of $600 million to $700 million additional dollars a year than what we have.

Governor’s office declines comment

Schaefer says launching bond-supported projects now would also create needed jobs.

“I don’t know that that’s the absolute motivating factor, but certainly when you’re talking about doing a lot of capital improvement and construction it is going to employ a lot of people and there’s probably not a better time to be putting people back to work than right now with the economy the way it is.”

Governor Jay Nixon’s office has declined to issue a formal statement on the possibility of a bond proposal, but Kelly says the jobs aspect should be appealing to Nixon.

“I’m surprised that he’s not more aggressive on this because he talks about jobs and this is far and away the biggest jobs project in the state.”

Kelly says with Republican backing in both the House and the Senate the legislature can pass the measure without Nixon’s support, but he hopes Nixon will be involved.

“I hope he comes on board and I hope he’s helpful.”

See Schaefer’s proposal, SJR 3.

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Decision could come soon on grant for small nuclear reactors (AUDIO)

July 19, 2012 By

Ameren, Westinghouse and the state’s utilities are awaiting word on an application for a federal grant to help support their project to create small, modular nuclear reactors.

State Senator Mike Kehoe (R-Jefferson City) is in Washington D.C. this morning checking on the status of the application for a grant of $452 million over five years.

“We understand that were three applications submitted from other states that have partnered up with other energy providers, so we’re one of four. We’re gonna find out in the next couple of days … we believe we may be one of three. The rumor is that one of those competitors has been already kinda knocked out of the competition.”

Kehoe says Missouri is in a good position to win out. “Missouri’s package, with the unique alliance we have with all the utility providers together, the great safety story that Callaway provides as a site and the efficiency that Callaway’s provided for nuclear energy over the last almost 30 years, as well as Westinghouse who is a global provider of nuclear energy. When you add all those things together I think our odds are pretty darn good.”

Kehoe says if Missouri’s team gets that grant, the whole state stands to benefit. “It not only provides base load power for our state, it also makes Missouri the hub of that technology, which means it’s an incredible export opportunity to manufacture these products and export them globally right out of central Missouri.”

If Missouri doesn’t get the grant, Kehoe says the “conversation’s not going to go away.”

He says a decision could be announced in the next 30 to 45 days.

AUDIO: Mike Lear interviews Senator Mike Kehoe, 6:27

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