On Wednesday, Jan. 9, lawmakers met in Jefferson City at noon for the beginning of the 2013
legislative session. In addition to the traditional opening day ceremonies, we welcomed 12 new members to the upper chamber this year.
There is an air of optimism in the Capitol this year that has been noticeably absent in sessions past. Things are looking up for our state. Unemployment fell steadily in the last half of 2012, hitting 6.7 percent in December. While still high, it is a welcome change from the days of nearly 9 percent unemployment just a few years ago. It is also a sign that the measures we have approved are beginning to take hold and turn around our state’s economy. Revenue collections were up through the first half of the state’s budget year, and we have held onto our AAA credit rating, one of only a handful of states in the country that can still claim that distinction.
However, we still have a ways to go. There are countless Missouri families who continue to struggle, people who work hard, do the right thing, and yet still fight just to make ends meet. We must remain committed to making our state a place where all citizens can prosper.
Part of achieving that goal is giving job creators the tools they need to succeed. We will consider numerous measures to make Missouri a place where businesses can grow and expand. We will be looking at a handful of broad-based tax relief bills to help small businesses in the state, measures to reform the workers’ compensation system and legislation designed to bring more economic activity to Missouri, among many others.
Court decisions in recent years have invalidated a number of important laws, including ethics rules and the cap on jury awards for medical malpractice cases. These, and many other issues, must be addressed in the upcoming months. We will also debate tax credit reform, an issue that has enjoyed broad appeal but little consensus.
For the last year and a half, tax credit reform has been a non-starter in the Legislature, mostly due to an impasse over sunsets between certain members of the House and Senate. That looks to change this year. Many lawmakers have committed to finally addressing tax credit reform during the 2013 session. It’s time. Missouri spent more than $600 million last year alone on tax credit programs, with a large chunk of those funds going to just two programs, Low-Income Housing and Historic Preservation. The continued growth of these credits will soon hamper our ability to invest in education and state infrastructure. We must take a measured approach to these programs, and ensure they are achieving their intended goals.
Another issue we must fix is the expiration of the state’s benevolent tax credits. These credits go to citizens for donating to non-profit organizations like food pantries. Unfortunately, a bill to prevent many of these programs from expiring last year failed to pass due to becoming tied up in the overall tax credit reform deadlock. We have to fix this. These programs are critical in helping these charities aid the people who need it most. I will do all I can to see these credits restored.
The next few weeks will be spent considering legislation in committees, with bills slowly trickling onto the floor for debate. As we work through the session, I will continue these weekly updates to keep you informed about important actions in the Capitol.
If you have any questions or comments about this or any other matter regarding your state government, please feel free to contact me at (573) 751-1503; you are also welcome to e-mail me at jay.wasson@senate.mo.gov.
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