Categories
Missouri Public Policy

What Is Governor Nixon Thinking?

by Michael R. Allen

One has to wonder what is the point of Missouri Governor Jay Nixon (Democrat)’s tax credit reform proposal and why he is going to such great lengths to push it. The House Republican leadership is stonewalling any changes to tax credits this year, so even if Nixon could get reform passed in the Senate it will never make it to his desk. That fact did not stop Nixon from showboating at a press conference yesterday, where he pitched his tax credit proposal flanked by 75 educators whose presence underscored his point that a dollar toward tax credits is a dollar taken from education.

This is a talking point now being used in debate in the General Assembly by Senator Brad Lager (R-Savannah) and his conservative allies, whose commitment to public education has never been so strongly stated. Strange that Lager, Nixon and company have aimed their strongest attack at the historic tax credit, one of the few tax credits in Missouri that does not require expensive consultants and lawyers to understand and use. The low income housing tax credit is second on the list, although its appropriation system is continually politicized along the lines that Nixon is proposing for all tax credits in the state.

I keep wondering if this Jay Nixon is the same man that I met at a fundraiser hosted by Steven Fitzpatrick Smith back in 2008. That Nixon talked a lot about the importance of education, too, but he also emphasized his commitment to the historic rehabilitation tax credit and urban development. Nixon proclaimed to understand that the historic rehab credit creates jobs. That night nearly two years ago, Nixon told a room of us that he was proud of his days living around Tower Grove Park and being a city resident.

Flash forward and now he’s aiming at the state’s only citizen’s tax credit, knowing he won’t hit, because taking aim wins alliances with people who wish that Missouri had no cities larger than Chillicothe. He’s doing this at the same time that Lt. Governor Peter Kinder (R) is building up his urban support to unseat Nixon. He’s doing this at the same time that House Speaker Ron Richard (R) is calling for independent evaluation of all tax credit programs before making cuts — a sensible and needed study that could help Missouri get rid of the bad programs. What could Jay Nixon possibly be thinking? Why let Republicans who know very well how to use the opportunity sound urban-minded and reasonable to St. Louis voters?

I’d like Governor Nixon to embrace real tax credit reform, not a gubernatorial power grab that makes tax credits the sole province of the politically connected who can wheedle part of the annual appropriation. All Nixon needs to do is look at the programs and propose getting rid of the ones that aren’t creating jobs and spurring revenue returns. He needs to drop his current reform proposal fast. After all, every dollar spent in campaign contributions is a dollar not spent on creating jobs or improving neighborhoods. You don’t have to be a teacher to do that math.

Categories
Historic Preservation Missouri Public Policy

Historic Tax Credits at Work Near the Missouri Capitol

by Michael R. Allen

This is how the building at 105-7 East High Street in downtown Jefferson City looked in 2006.


Here’s what it looked like on a recent visit. While mid-century slipcovers should not always be removed, here the half-covering was ugly and covered operable windows. Windows allow for light and ventilation and significantly reduce the energy usage of a building — not to mention the spirits of the people who work or live inside. Underneath, the ornate cast iron lintels are intact. The facade will be restored gracing a block very near our state Capitol.

This project is utilizing Missouri’s state historic rehabilitation tax credit, a national model that returns up to 25% of qualified rehabilitation costs back to an owner in transferable credits. This building was in sound condition before, but its street face was not becoming a location right by the seat of state government. Without the tax credit, the owner might have left well enough alone — and visitors to our capital might have found this block a bit unbecoming.

Categories
Historic Preservation Missouri Public Policy

Support for Historic Tax Credits from North Side — Of Minneapolis

by Michael R. Allen

On March 28th, the blog The Adventures of Johnny Northside carried the post “Historic Rehab Tax Credit Means JOBS!”. Fine, but is another blog calling for saving the Missouri historic rehab tax credit worth mentioning?

Well, the The Adventures of Johnny Northside blog is published by a resident of Minneapolis, and he is calling for Minnesota to enact a historic rehabilitation tax credit. And Missouri’s 25% credit is cited as a model.

Categories
Historic Preservation Missouri Missouri Legislature Public Policy

Study on Missouri Historic Tax Credit: 43,150 Jobs, Most Tax Credit Projects Small

by Michael R. Allen

The Missouri Growth Association has released An Evaluation of the Missouri Historic Preservation Tax Credit’s Program’s Impact on Job Creation and Economic Activity Across the State, a 34-page report by Dr. Sarah Coffin, Rob Ryan and Ben McCall of St. Louis University.

According to the report, the tax credit is responsible for 43,150 new or retained jobs with an average salary of $42,732 as well as $669.8 million in new sales/use and income tax revenues to state and local government.

The report confirms advocates’ assertions that the credit enjoys wide usage and largely benefits small developers. Coffin and company found that, as of 2009, the range of historic rehab tax credits issued goes from $399 to $20.1 million.

About 33% of the projects that have received Missouri historic rehab tax credits have used less than $50,000 in credits. Taking the number up to usage of $100,000 or less, there is a majority of 57% of projects. Less than 13% of projects used more than $1 million in credits.

Categories
Missouri Missouri Legislature Public Policy

Video Tour of St. Louis Equity Fund Projects

by Michael R. Allen

In January, the Federal Reserve Bank of St. Louis posted this video of a bus tour of affordable housing developed by the St. Louis Equity Fund (SLEFI). SLEFI President John Wuest led a tour that included south city, the Loop, Hillsdale, north St. Louis and downtown. The majority of the projects included are rehabilitation of historic buildings that leveraged state and federal low income housing tax credits with state historic rehabilitation tax credits.

At one point during the tour, Wuest said that after several projects in one area there can start to be serious impact. That’s a realistic approach that differs from the large-scale urban renewal projects that have failed again and again. Yet the project-by-project effort to create a community impact is difficult to finance, especially if the end product is affordable housing. The recession has made the work even harder, but changes to the tax credit programs that make this work possible would be disastrous.

Categories
Missouri Missouri Legislature Public Policy

St. Louis Post-Dispatch: "Dubious Policy Based on False Urgency"

by Michael R. Allen

Today the Post-Dispatch has an excellently-titled editorial on Governor Jay Nixon’s tax credit proposal: “Tax credit plan advances dubious policy based on false urgency”.

The editorial writer makes many good points, but a key observation is the timing of the proposal:

The tax credit debate hardly is new; the Legislature has been debating it for at least two years. Mr. Nixon has had ample time for an orderly, informed public debate on how best to proceed. But he chose to drop this complicated proposal out of the blue, with just six weeks remaining in an otherwise busy and contentious legislative session.

The timing of the proposal has led some observers to view it as a red herring designed to get the legislature to act. However, the resonance of Nixon’s views with those of Republican Senators like Jason Crowell and Matt Bartle cannot be underestimated. In past years — including last year — the governor stood on the side lines of the tax credit debates in the legislature, frustrating many urban Democrats who has enthusiastically supported his election.

This year, Nixon has aligned with those who view tax credits as “welfare” and who view welfare — and most government spending — as stealing. Some tax credits are dubious, but a true overhaul would evaluate the net economic benefit of each program before making cuts. The Rutgers study of state historic rehabilitation tax credits is a model of careful analysis that should guide decision-makers. This writer doubts that every program would show a net benefit if analyzed carefully. In the absence of such study, we are left with the prospect of continued contest of interests. Nixon’s proposal would amp up that contest, and create a wholly political tax credit system. Nixon is playing politics, not making policy. And Missouri’s legislators should reject his proposal.

Governor Nixon can be reached at:

Office of Governor Jay Nixon
P.O. Box 720
Jefferson City, MO 65102
(573) 751-3222

Categories
Missouri Public Policy

Americans for Tax Reform: "Governor Nixon is Not a Crook, but His Tax Policy Sure is Criminal"

by Michael R. Allen

Missouri Governor Jay Nixon’s tax credit proposal is taking heat from the national conservative organization Americans for Tax Reform (ATR). Yesterday, ATR’s blog carried the story “Missouri Governor Nixon is Not a Crook, but His Tax Policy Sure is Criminal”, which blasted the hypocrisy of Nixon’s anti-tax rhetoric and his plan to cut tax credit programs that return money to citizens and create jobs.

ATR even notes the Rutgers study on the economic benefits of historic tax credits:

Yet, according to a study by Rutgers University, at least some of these supposed “hand-outs” are in fact legitimate job-creating policies. The study shows the positive impact of historic tax credits and further notes that Missouri is one of the largest beneficiaries of these credits in terms of jobs and income. This makes sense: putting money back into the hands of the people likely produces jobs…and guess what? Nixon proposes cutting and capping these credits more than any other!

Nixon’s move to court the right wing of the Missouri Senate has generated at least one right wing opponent. No wonder — Nixon’s position is already costing him allies on his own side of the political fence. Why shouldn’t he also be losing allies on the side that he’s trying to placate? In politics, pleasing everyone is impossible, but making everyone upset with you certainly is not.

Categories
Abandonment Missouri

Light Post in Winfield

by Michael R. Allen

Winfield, Missouri occupies the far end of a flood plain ravaged in 1993 and many other years. On Highway N, behind an athletic field stands this inexplicable two-headed light post — the last vestige of a phantom gas station.

Categories
Missouri Public Policy

Say What, Mr. Governor?

by Michael R. Allen

Tim Logan at the Post-Dispatch reports that Governor Jay Nixon (Democrat) is ready to put tax credit programs under the budget axe. That’s not all bad, of course, but here’s the shocker:

When pressed on what programs he might go after, the governor mentioned historic and low income housing tax credits, both of which are widely used to fund development in the City of St. Louis and its older suburbs. But any specifics would likely need to be negotiated with lawmakers, some of whom have been targeting the historic tax credits program for years.

Of all of the tax credit programs in Missouri, Governor Nixon singles out the two most used in urban areas and one — the historic rehab tax credit — that average people can actually use. Hello?

Categories
Agriculture Events Historic Preservation Missouri

Talk on Missouri Barns This Friday

Barn Again: Efforts to Document and Save Elements of the Rural Missouri Landscape

Noon, Friday, March 12 / Lecture Room / Architecture St. Louis / 911 Washington Avenue, Suite 170

Since joining Missouri Preservation as its Field Representative a little over a year ago, Bill Hart has been advocating for Missouri’s endangered historic resources. His position as Field Representative, a first for Missouri Preservation, is assisted by a Partners in the Field Challenge Grant from the National Trust for Historic Preservation. One of Bill’s outreach activities has included calling attention to the plight of the barn. Realizing that this is one of the most endangered building types not just in Missouri but throughout the nation, Bill has been photographing barns throughout the state (several hundred so far), keeping an eye toward at least providing quick photographic documentation of those that tenuously cling to the rural landscape. Bill has also been instrumental in organizing our state’s first barn alliance, which recently held its first meeting in conjunction with Missouri Preservation’s annual conference in Independence.