Category: Public Policy

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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
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
Brick Theft Public Policy St. Louis Board of Aldermen

Brick Thieves and Brick Dealers

by Michael R. Allen

After this week’s spate of fires in JeffVanderLou, Alderman Sam Moore (D-4th) proposes changing city ordinances to force brick thieves to pay back the amount of damage that they cause, instead of the current maximum of $500. Moore’s proposal makes sense.

The commercial building at 2538 St. Louis Avenue in St. Louis Place, destroyed by brick thieves in August 2007.

Yet a new ordinance should go further. The thieves are only the first — and least compensated — beneficiaries of the money generated by the stolen brick. Penalties for dealers who buy stolen brick are the same as for the thieves. Those should be increased too.

The commercial building at 2538 St. Louis Avenue in St. Louis Place, destroyed by brick thieves in August 2007.

What if dealers caught buying stolen brick permanently lost their business licenses?

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Illinois Public Policy

Illinois Legislators Trying to Create a Historic Rehabilitation Tax Credit

by Michael R. Allen

On February 11, Illinois State Senator Dave Koehler (D-Peoria) introduced SB 2559, a bill that would create a state historic rehabilitation tax credit modeled on Missouri’s.

Since then, the bill has gained two co-sponsors, Senators Dale Risinger (D-Springfield) and Michael Noland (D-Springfield). However, the Senate Commerce Committee has postponed a hearing of the bill.

Meanwhile, a similar bill introduced last year by Representative Greg Harris (D-Chicago) in the Illinois House of Representatives (HB 586), has attained five co-sponsors but has yet to receive a committee hearing.

Categories
Public Policy Schools

Senate Bill Introduced For Historic Schools

by Michael R. Allen

From Preservation Action:

On January 29th, Sen. Jim Webb (D-VA) introduced S. 2970, the Rehabilitation of Historic Schools Act of 2010. A companion bill (H.R. 4133) was introduced in the House by Eric Cantor (R-VA) in November.

The bill would change a provision in the Federal Rehabilitation Tax Credit that currently restricts renovation of older public school buildings, limiting the ability of local governments to partner with private developers to rehabilitate schools.

“With municipalities across the country unable to fund school repairs and construction, this bill will provide needed assistance, partner local government with the private sector, create jobs, and give our children the facilities they need to learn and grow,” said Webb in his press release. “Good local schools and well-maintained public facilities are key indicators of where businesses may locate. This legislation strengthens our communities across the board.”

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Missouri Legislature Public Policy

Bartle’s Tax Credit Bill Didn’t Get Out of Committee

From Anna Ginsburg, Staff Coordinator of the Missouri Coalition for Historic Preservation and Economic Development:

Senator Matt Bartle’s bill (SB 584) to sunset Missouri tax credits was heard Friday 2/19/10 before the Senate Government Accountability and Fiscal Oversight Committee. The language from Senator Crowell’s bill SB 728 was attached to SB 584 as an amendment. Crowell’s bill would put 40 Missouri tax credits including Historic’s under the annual budget appropriations process. The committee voted to not send the bill to the Senate Floor by a vote of 4 -3. Senators Days, Schmitt, Schoemyer and Schaffer voted to kill the bill. Senators Purgason, Lembke and Lager voted to pass the bill out.

A second bill introduced by Senator Crowell (SB 890) was heard the Senate Jobs, Economic Development and Local Government Committee. SB 890 places a one year moratorium on low income housing tax credits and Missouri Development Finance Board tax credits. Several other economic development bills have been introduced into this committee and they could be used as vehicles for attaching Crowell’s bill SB 728 or some varation.

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Mid-Century Modern Neon Public Policy South St. Louis

That Donut Drive-In Sign

by Michael R. Allen

The animated neon sign at the Donut Drive-In, 6525 Chippewa Avenue in Lindenwood Park, returned to life on November 1, 2008. Donut Drive-In first opened in 1952 on what was then Route 66, the nation’s “Mother Road.” Many of the St. Louis stretch’s neon signs have disappeared, but not this one.

The owners of the donut shop could not afford to restore the Route 66 icon on their own, but were able to complete restoration using a matching grant from the the Route 66 Corridor Program administered by the National Park Service. The Missouri Route 66 Association was instrumental in assisting the owners with the grant process.

Since its creation by the National Park Service in 2001, the Route 66 Corridor Program has helped allow property owners to act in the public interest when otherwise unable. (Perhaps the National Park Service needs a name that tells people that its noble work is not limited to preserving open space.)

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Missouri Legislature Public Policy

Crowell Bill Fails to Pass Committee

by Michael R. Allen

Today the Missouri Senate’s Government Accountability Committee deadlocked in a 3-3 vote on SB728, the bill introduced by Senator Jason Crowell (R-Cape Girardeau) that would subject all tax credits to appropriation by the legislature. Among the credits included would be the state historic rehabilitation tax credit, already reduced by a cap on large projects placed by the legislature last year. Crowell will now attempt to attach his proposal through amendment to other bills.

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Historic Preservation Public Policy

Obama Proposes Eliminating Save America’s Treasures and Preserve America Funding

by Michael R. Allen

President Barack Obama’s fiscal year 2011 budget contains mixed news for historic preservation programs. Obama is proposing retaining at current levels the $46.5 million appropriation to State Historic Preservation Offices and the $8 million appropriate to Tribal Historic Preservation Offices. However, Obama proposes eliminating appropriations for two successful grant programs: Save America’s Treasures ($25 million) and Preserve America ($3.175 million). These programs are funded through the federal Historic Preservation Fund (HPF).

Obama proposes no cuts to the Land and Water Conservation Fund (LWCF), despite the face that the $900 million annual authorization for the LWCF and the $150 million annual authorization for the HPF share the same source of funding: lease money from oil and gas drilling on the outer continental shelf. Neither have ever received their fully authorized appropriations. Surely our president knows that sustainability is as much about retaining existing buildings and neighborhoods as it is about preserving wilderness. After all, President Obama has championed weatherization funding and homeowner energy efficiency tax credits.

All of these proposals are subject to Congressional approval. Those who see the benefit of the preservation programs should contact their representatives immediately.