Kinder Opposes Property Tax Subsidy

Republican Lieutenant Governor Peter Kinder was the lone "no" vote on a Missouri Housing Development Commission proposal that would use state dollars to pay the property taxes of income-eligible homebuyers next year.

The vote on the $35 million dollar plan was 7 to 1.

The MHDC approved using $15 million dollars from the federal stimulus package and $20 million from a reserve fund to spurt home buying and construction. Officials estimate that 9,000 households could qualify for a $1,250 subsidy to go towards their property taxes next year.

Supporters, including Gov. Jay Nixon and Treasurer Clint Zweifel are touting it as a tax cut. But critics call it a unnecessary subsidy.

"This program will help thousands of Missouri families realize the dream of home ownership by relieving their property tax burden for one year and encourage fiscally sound, resource-saving practices. By offering this tax relief, working Missourians will be able to pump more money into our economy, and I applaud the MHDC for taking this important step today," said Nixon in a statement.

GREEN HOME INCENTIVE: Also part of the plan is a $500 stipend for those who purchase an energy-efficient home or items to make the home more energy efficient.

The total tax relief for any one family would be capped at $1,750.

Nixon Goal: Keep Unemployment Below National Average

Governor Jay Nixon said a chief of his goal of his administration over the next year is to keep Missouri's unemployment rate below the national average and work towards five or six percent unemployment by the end of his first term.

WATCH THE KY3 NEWS @ 10 REPORT HERE

Nixon made the comments during an in-depth interview with Ky3 News interview Thursday in the Governor's Mansion, seated next to the First Lady.

Missouri's unemployment rate was 8 percent when Nixon took office. It is 9.5. percent now. The national rate sits at 10 percent.

*WATCH EXCHANGE ABOVE*

Asked if he can have a direct impact on the unemployment rate in Missouri, the Governor replied, "You have a direct impact on making a difference where you can."

ON UNEMPLOYMENT 1 YEAR FROM NOW: "I'd like to see us consistently, constantly stay below the national average."

ON THE JOB PICTURE LONG-TERM: "We certainly would like to get that down into what most economists say is the number in the five to six range . . . I think a lot will depend on how and when inflation comes late in the term.

Nixon Dedicates $12M to Produce Jobs Through Community Colleges

Governor Jay Nixon brought his push for new jobs to Springfield Tuesday, announcing a $12 million dollar pot of money available for community college training programs.

WATCH THE KY3 NEWS @ 10 REPORT HERE

The idea is targeting job sectors with a growing need -- and the state's 12 community colleges will compete for the funds. The Governor said applications will be judged on who can create or expand programs that will get people to work the fastest. The program targets such fields at veterinary and pharmacy technicians, nursing aides and other skilled crafts.

*WATCH CLIPS ABOVE*

"This is not about building a bureaucracy. This is about building people," Nixon said.

WOULD NOT set the program's job goal yet -- saying "we should have a pretty solid matrix" come mid-February when applications are due.

Ameren Rate Hike Battle, Take Two

A group of Missouri businesses have fired another warning shot against a plan to allow AmerenUE to raise rates its by 18 percent.

The plan is before the state's Public Service Commission and FERAF -- Fair Electricity Rate Action Fund -- said Thursday it will "educated Missourians through every available means about the impact" of the hike at a time when Missouri's unemployment rate hangs around 9 percent.

"As FERAF members, we respect the PSC and its process and want to make sure as many Missourians as possible know about Ameren’s requested 18% rate hike,” said Bob Quinn, Executive Director of the Missouri Association for Social Welfare, and a FERAF member.

Members of FERAF include the AARP, the Missouri Rice Research & Merchandising Council and the Consumer Council of Missouri.

Ameren had planned to build a second nuclear reactor in mid-Missouri. But earlier this year, the company suspended those plans after lawmakers failed to repeal a 1976 law barring utilities from charging customers for certain costs of a new power plant before it starts producing electricity.

Missouri Unemployment Drops

Down to 9.3%

SIGN OF STABILITY A BRIGHT SPOT FOR NIXON

Missouri's unemployment rate dropped two-tenths of a point to 9.3 percent in October, keeping the Show-Me State's jobless rate about one full point below the national average.

Nationally, the unemployment rate rose to 10.2 percent last month. This is the eighth consecutive month that Missouri's unemployment rate was lower than the national average. The state's total nonfarm payroll increased by about 4,000 jobs.

"The October unemployment percentages suggest that Missouri’s job market continues to stabilize while demonstrating what independent economic sources have already been reporting about the health of our state’s economy," said Gov. Jay Nixon in a statement. "We are encouraged by these improving indicators and determined to move forward in creating good-paying jobs and continuing to work to secure investment in Missouri."

The Department of Economic Development cited a Moody's Economy.com report that Missouri was one of 11 states showing signs of emerging from the national recession.

Read more HERE.

Nixon Makes No Predictions on Unemployment, End of Recession

Gov. Jay Nixon made no predictions about when Missouri's unemployment rate would drop and said it was "very, very difficult" to determine when the state would climb out of a recession.

Nixon also made the case that Missouri has been able to manage the recession better than other states and pointed to less harmful budget cuts.

*WATCH FULL CLIPS ABOVE*

On Unemployment: "We have managed to keep Missouri's unemployment rate under the national average . . .As far as when we're going to be out of it, it's very, very difficult to tell."

On Another Stimulus: "I think by being conservative and bleeding that money out over a period of time on the stabilization . . . we've been able to manage those cuts."

On Federal Healthcare legislation: "I think we're a very long way to the finish line on healthcare reform . . ." Adds that he hopes any bill won't push unfunded mandates onto the states. Seems to like U.S. Senate version better.

PLUS: $266M For Sewer & Water Projects

WATCH THE KY3 NEWS @ 10 REPORT HERE

Missouri Pols Play Unemployment Blame Game

Missouri Republicans hopped all over the new unemployment rate Friday, which hit double-digits for the first time in 26 years.

GOPers said the 10.2 percent jobless number proved that the Obama administration's massive economic stimulus package failed to accomplish its intended goals, eight months after its passage.

"While President Obama told us that the failed stimulus would keep unemployment below 8 percent, more than 10 percent of Americans are unemployed," Congressman Roy Blunt said in a statement.

The country lost 190,000 jobs in October, continuing a downward trend that began last spring.

The Obama administration noted that employment in temporary jobs increased by 33,700. Christina Romer, chair of the president's Council of Economic Advisors, said that number represented a sign of hope amid "painful evidence of continued labor market weakness."

"The motor vehicle industry also posted employment gains. These are hopeful signs that the unprecedented policy actions are working to stabilize the economy and put us on a path toward recovery," said Romer. Read her full statement HERE.

The National Republican Senatorial Committee (NRSC) attempted to tie Missouri's Democratic candidate for U.S. Senate to the climb in unemployment.

"Robin Carnahan was among those Democrats who said that she would have voted in favor of the failed stimulus debacle," said NRSC press secretary Amber Wilkerson Marchand.

In an interview with The Notebook back in March, Carnahan did not specifically commit support to the $787 billion dollar stimulus package, but said "we've got to do something."

On the specific legislation, Carnahan said, "I didn't read the 18-hundred page bill and wasn't asked to vote on that. There's no reason for me to kind of talk about something I didn't have any input on. (You can watch the full clips from that interview HERE.)

Meanwhile, Missouri Democrats tried to reach back to the Bush administration to pin blame for the country's continuing economic problems. Missouri Democratic Party executive director Brian Zuzenak said that Blunt's 93 percent voting record with President Bush makes him responsible for one of the worst economic downturns since the Great Depression.

In the 7th Congressional District, Sen. Jack Goodman said the 10.2% unemployment rate "is another sure sign that the Pelosi-Obama stimulus has failed."

Goodman, who voted against a large state spending bill that included stimulus money, has tried to carve himself out as the most fiscally conservative Republican in the race to replace Roy Blunt.

"Stimulus bills, bailouts, and government takeovers have done little more than increase the national deficit by trillions of dollars that future generations of Americans will struggle to pay off," Goodman said.

Poll: 50% Greene County Residents Believe Missouri Heading in Right Direction

A new Missouri State University poll shows Greene County residents are a bit more optimistic about their financial futures than you might think.

And a plurality believe the state is heading in the right direction.

WATCH THE KY3 NEWS @ 10 REPORT HERE

QUESTION: Do you think that a year from now, you and your family will be better off financially than you are now, worse off, or about the same as you are now?

BETTER OFF 38%
WORSE OFF 10%
ABOUT THE SAME 47%

QUESTION: Do you think things in Missouri are generally heading in the right direction or wrong direction?

RIGHT DIRECTION 50%
WRONG DIRECTION 32%
NOT SURE 17%

Both polls based on 591 responses from Greene County residents between Sept. 26th and Oct. 11th. The margin of error is 4%.

PLUS: MSU POLLING DIRECTOR CALFANO ON WHAT RIGHT DIRECTION NUMBER MEANS FOR GOV. NIXON:



"I also think it might be a welcome sense of relief for Governor Nixon."

*WATCH CLIPS ABOVE*

MORE from the polls:

Future Economic Thoughts:
38% Democrats believe they'll be better off; 44% of Republicans
60% 18-34 year olds believe they'll be better off; Just 21% of those 55 & Older

State of Missouri Right Direction/Wrong Direction:
REPUBLICANS: 50% Right Direction, 34% Wrong Direction
DEMOCRATS 60% Right Direction, 27% Wrong Direction
MALES 47% Right Direction, 36% Wrong Direction
FEMALES 53% Right Direction, 29% Wrong Direction

Skelton Meets With Labor Secretary

Congressman Ike Skelton recently met with U.S. Labor Secretary Hilda Solis to discuss the unemployment rate in the 4th Congressional District.

"We talked about a number of matters during the meeting. But, I was particularly eager to share my concerns about the high unemployment rate in the Fourth District and to discuss how we can boost jobs and job training in rural Missouri. It is vital that we prepare our workforce to compete and succeed in the 21st century global economy," said Skelton in a statement.

"While last week’s report indicating 12,000 jobs were saved or created by the Recovery Act in the Fourth District is welcome news, more work remains. I am hopeful that the Secretary will take seriously my concerns and will share them with her colleagues in the Administration," he added, without getting into specifics.
***

MEANWHILE: The U.S. Senate voted to give the unemployed up to 20 weeks of additional unemployment benefits and expand the home buyers tax credit program.

Sen. Kit Bond's communications maestro notes that Sen. Kit Bond supports extending unemployment benefits but objected to the homebuyer tax credit extension.

"I object to including an expansion of the homebuyer tax credit program in the bill, which comes at a high cost to taxpayers, has been ripe with fraud and abuse, and runs the risk of recreating another housing crisis," Bond said.

More Polling

Missouri State University's political science department releases numbers on Greene County voters perception of the economy and if they believe Missouri is heading in the right or wrong direction.

DEVELOPING . . .

FOR Ky3 News @ 10

Dealerships Suffer From Clunker Hangover

Sales at auto dealerships are predictably down a month after the popular "Cash for Clunkers" program ended, and now some analysts are calling the incentives an economic wash.

WATCH THE KY3 NEWS @ 10 REPORT HERE

"We pulled people ahead that weren't in the market, so it got them to come out and buy those cars. Now we've taken, probably, some business from September and October, so we're probably going to see a softer September than we would normally see," explained Reliable Superstore General Manager Tony Stubblefield.

***

Missouri State University Economic Tom Wyrich takes apart the Clunker program from several different angles:

WYRICH'S WISDOM:

"It helps some people and hurts other people. Is that a good thing? It's not a good thing. It's just a thing."

• "It caused people to accelerate the purchases of cars. Buy a car today, don't buy one in 2010, 2011. So car sales are up this year, but they'll drop off in the future."
• "If affects the car sellers in a big way, in a noticeable way, in a way we can put in headlines, but it damages other other industries -- a lot of other industries in a small way that offsets that. People have to make all these car payments and when they start making car payments on these new cars they're buying -- they don't have the money to go out and go to Applebee's or buy something at the mall at Macy's."
• "These cars were capable of transporting people and what we did was destroy them. We've got this housing crisis, price of houses have been falling, contractors got some real problems out there, let's go out and blow up some homes. We destroyed cars thinking that will lead to prosperity. And if that does, let's burn down our homes. This has amounted to destroying wealth, capital goods. And that is not smart. It's stupid."

Springfield CEOs Urge Nixon: Invest In Existing Business

Springfield business leaders pitched their economic ideas to Gov. Jay Nixon on Tuesday as he considers a bond issue to fund statewide capital improvements.

The governor was in the city for a brainstorming session to help form his 2010 economic legislative agenda. Most of the business leaders urged the governor to focus resources on what already works.

Springfield Remanufacturing Corporation has been one of the city's most successful enterprises but Chief Executive Officer Jack Stack said that even he is having trouble getting access to the capital necessary to grow.

“It is unbelievably tough. The game has changed radically,” said Stack.

Read & Watch the KY3 News @ 6 Report HERE.

Nixon Introduces Danner; Won't Detail Martinez Ouster

Gov. Jay Nixon hosted a business roundtable with his new interim director of Economic Development and made his first public comments on the resignation of Linda Martinez in Springfield Tuesday morning.

"She's had an outstanding first 17 hours," Nixon said to laughs.

*WATCH CLIPS ABOVE*

NO REAR-VIEW MIRRORS . . .

On Martinez, Nixon declined to detail the reason she resigned. "She did resign. We're moving forward," he said. "We appreciate the service she gave."

. . . BUT CITES RECENT MEETING

Nixon said he's in regular contact with cabinet officials and cited a recent meeting with Martinez. "I kept in contact, clearly with her . . . Even the entire cabinet, just 10 days before that."

More on the Roundtable . . .

Tonight on Ky3 News @ 5 & 6

PLUS: BONUS ROUND
The GUV Discloses He's A 'Curb' Fan
*Watch it*

'DOCTOR . . . PHARMACIST'

Watch The Curb clip the Governor's referring to HERE.

The new season premieres Sept. 20th

Insiders: Danner Looks To Be Favorite For Econ Director

Jefferson City insiders believe that Katie Steele Danner is well-positioned to become Gov. Jay Nixon's permanent choice to head the Department of Economic Development, despite a past arrest for driving while intoxicated.

Just hours after Linda Martinez's resignation and Danner's interim appointment, the always-reliably researched Turner Report noted that Danner refused to take breathalyzer tests on two occasions, both over a decade ago.

But state government insiders still view Danner, a former state House member, as the favorite to take over one of the most important positions in the Nixon administration.

"She's very smart, very poised, very connected and very respected as a savvy lady," said one insider with close connections to the Democratic establishment. "It's all Danner. The interim part is just interim. She will be the next director unless she just doesn't want it."

Another economic development official, agreeing to speak only on the condition of anonymity, signaled that while Danner's skills will be closely watched in the coming weeks, she has a strong advantage over other candidates because of her ties to Nixon and her political acumen.

"We'll see how she does beginning (Tuesday). I believe she'll be with Jay in Springfield for her debut," the official said.

Danner is married to Adjutant General Steve Danner, who was elected to the State Senate the same year as Nixon.

One insider said the implications of driving while intoxicated detailed by Turner aren't unique nor a disqualifier necessarily. "The 1997 thing was, well 1997," said the source. "Ten years between events isn't quite a pattern," he added, referring to the Taney County traffic stop, when Danner refused to take a breathalyzer after a stop for speeding and reportedly failed field sobriety tests.

"There's not much there, there," the insider argued.

This is not to say Nixon's team won't conduct a thorough search. Economic officials around the state have already been enlisted to help.

But Nixon is likely to keep a woman in the post for diversity's sake. Growing, yet not a political powerhouse, Missouri's Latino community has already voiced its disappointment with Martinez's dismissal. Still, Nixon has three years to reach out to that community.

The source also noted that whoever is chosen will need reach out much more than Martinez, who is described as a political neophyte who did not thrive in personal interactions or pay attention to gentle political egos.

While some economic officials were unimpressed by Martinez, others were rubbed the wrong way, the source said.

And Nixon allies seem more than willing to dump on Martinez if she tries to pin any more blame on the Governor. "There is plenty that can be drizzled out, I'm told. She ain't no Sotomayor," quipped a source.

Nixon will begin his political rebound with Danner Tuesday morning in Springfield as he holds a roundtable with business leaders to brainstorm ideas about economic development and ways to stifle the state's growing unemployment rate.

Martinez Resigns

"We Need To Take Our Effort . . . To The Next Level"

Gov. Jay Nixon's director of Economic Development has resigned after only a little more than eight months on the job.

The St. Louis Business Journal first reported the resignation HERE.

In a brief statement, Martinez reportedly wrote to Nixon, "I am sorry we have been unable to meet and therefore we have been unable to discuss and reconcile our different views on how to move the state that we both love forward."

Martinez, a St. Louis lawyer, was the first woman to hold the position of Economic Development director.

NIXON STATEMENT:

"Today, I accepted the resignation of Linda Martinez as director of the Missouri Department of Economic Development. I appreciate the work Linda has done over the first eight months of this administration. Her efforts to create jobs and to give the department increased economic development tools, including the successful passage of a bi-partisan jobs bill, will continue to pay dividends to the people of Missouri. I wish her success in her return to private practice, where she will continue to be an asset to this state. It is clear that we need to take our effort to create jobs to the next level. To that end, I have started a Show-Me Business Tour to meet with business leaders across the state to hear about the opportunities and challenges facing their companies," Gov. Nixon said.

"There is much work to be done to attract more businesses to Missouri and put more of our citizens back to work. We will immediately begin a search for a new director. Until that time, Deputy Director Katie Steele Danner will be the interim director of the department," he added.

Cyber Crime Grants Will Aid Police, Stimulate Elsewhere

A windfall of stimulus dollars is coming to Missouri law enforcement to keep up with criminals, but the real economic impact from the dollars may be felt elsewhere.

WATCH THE KY3 NEWS @ 10 REPORT HERE

In the first wave of $25 million dollars in Edward Byrne Justice grants, about $1.5 million is going to cities, counties and drug task forces to fight cyber crime.

"Without this particular grant, we would not be able to carry on this initiative," said Major Kevin Routh of the Springfield police department, which is using the money to apply for new computer equipment and officer training.

"Are we in a position where down the road the rules may change and they may change for any reason, and the rules may be changed by anybody? And the city attorney's answer was yes," said Springfield City Councilman Nick Ibarra, a skeptic of embracing federal stimulus money to sustain local programs.

"If we're buying computers that were produced in Taiwan, it doesn't simulate the Springfield economy. If we're buying software that was produced in California, it doesn't stimulate the Springfield economy," noted Missouri State University professor of economics Tom Wyrich.

MORE KY3 TRACKING THE STIMULUS STORIES:

• Most Stockton Lake funds won't be spent for years
• Wage issue forces weatherization wait
• Springfield police shut out of stimulus funds
• Nixon seeks $142 M in stimulus for rural broadband

Nixon on the DL

Governor Jay Nixon was unable to travel to St. Louis for a scheduled announcement on microloans Friday because he injured his leg during a pick-up basketball game.

The Governor's office said Nixon is undergoing treatment for the injury and is using crutches.

Economic Development Director Linda Martinez filled in for Nixon to announce the small business loans.

She announced the first round of recipients of small business loans, including 4 Ozarks area recipients:

• Alva Allen Industries of Clinton received $25,000 - The company manufactures heavy-duty, industrial punch presses, including standard models, double ram presses, half presses, main frames and air clutches.
• Flett Enterprises LLC of Rolla received $25,000 - It's a commercial and residential plumbing construction and repair firm that specializes in piping, hydronics, steam and industrial.
• Patterson Auto Group LLC of Springfield received $25,000
• Burke Timber of Marionville received $25,000

Businesses with five or fewer employees were encouraged to apply for loans between $2,500 and $25,000, with the loans to be repaid over a ten-year term at an interest rate of three percent. More than 170 Missouri small businesses have applied for the loans so far.

The Governor's office said businesses seeking loans can apply online at www.ded.mo.gov/MOloan/index/.htm.

Zweifel Touts Low-Interest Loan Program

State Treasurer Clint Zweifel was in Springfield Tuesday to tout passage of a program that's designed to help more small businesses and farmers secure low-interest loans.

The expanded linked deposit program allows applicants to borrow loans at lower interest rates.

"Folks, it passed unanimously, which doesn't happen very often in our business," said Zweifel in at Great Southern Bank in Springfield.

*WATCH ZWEIFEL DESCRIBE THE PROGRAM ABOVE*

The Treasurer's office noted that Davis Excavating Company in Rogersville used the program to purchase machines and equipment and Billings & Associates Fine Woodworking in Springfield used the program to expand its cabinet-making business.

Zweifel's expansion includes reinvesting $1 billion dollars an ensuring a 2-3% discount "regardless of what the interest rate is." Says he's helped speed up process for approval from 6 weeks to just one.

Zweifel also said the Treasurer's office would unleash a new marketing push over the next few weeks to make sure the linked deposit program is "touching more parts of the state."

McCaskill: No to 2nd Stimulus

Tells POLITICO it's "a non-starter"

Sen. McCaskill says there’s no way to go back to the well.

"If we are trying to move anything on health care and we’re trying to move anything on climate change, then putting another stimulus on top of that is a backbreaker," she told POLITICO. "It is a political backbreaker — for people from states like mine anyway."

But some Dems disagree.

Read the full piece HERE.

Nixon in Springfield Wednesday For Jobs Bill Signing

Gov. Jay Nixon will be in Springfield Wednesday afternoon to sign ceremonial copies of bill that expands incentives the state can use to attract new business.

***

Read the "Quality Jobs" legislation HERE.

Nixon's Springfield event will be held at the Chamber of Commerce on 202 S. John Q Hammons Parkway at 2:30 p.m.