Nixon says state needs to focus on helping existing businesses create jobs

Missouri's effort to create jobs needs a clearer focus on helping businesses already operating here rather than emphasizing attempts to lure large new investment to the state, Gov. Jay Nixon said in an appearance Friday at Nordenia USA.

While Nixon did not discount the need to find new employers, he said current policies should be changed to give more help to companies with long-term ties to the state. Nordenia, which employs about 400 people and makes extensive use of state job training money, is the kind of company that Missouri needs, one that builds communities and is loyal to its work force, Nixon said.

"Nordenia is an essential part of that tradition," Nixon said.

Under Nixon's proposal, known as Missouri First, businesses with longtime ties to the state would be eligible for bigger incentives than companies considering relocating from outside. For every five years a company has operated in the state, the cap on incentives to support growth would be increased by 2 percent, with a maximum add-on of 10 percent for companies that have been in the state 25 years or longer.

The additional help would apply to programs such as the Quality Jobs program, which helps companies that add good-paying jobs with benefits such as health insurance, as well as job training and enterprise zone programs. The extra incentives for Missouri companies will not increase the overall annual cap on those programs, Nixon said.

"When it comes to the economic recovery of this country and this state, this is where it is all going to start," Nixon said.

Attracting business

The current laws governing economic development programs can actually provide more help to a business seeking to relocate to the state than to a company seeking to add the same number of workers to an existing operation, Nixon said.

"We must be absolutely relentless in bringing new jobs and investment to Missouri," he said. "We have also got to look towards home for opportunities for job growth and creation."

The Missouri First program is one of three initiatives Nixon is pushing in this year's legislative session. He also wants to create a fund to attract and encourage high-tech businesses and is seeking $12 million for expanded job training programs at community colleges.

Bill Burke, president of Nordenia, said that while employment has remained relatively stable at the plant -- there have been no layoffs during the recession and employment has fluctuated within a few dozen people of 400 -- the work requires well-trained employees. "Over time, we have used a variety of them," he said of state training incentives.

Nixon also toured the plant, which produces packaging materials for a variety of companies including Procter & Gamble.

Nixon's proposals were praised by John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce. Mehner is also a member of the Missouri Development Finance Board, a state body that considers large incentive awards to businesses among other work, and president of the Missouri Economic Development Council, a private body.

"I appreciate the effort to do something for Missouri businesses," Mehner said. "That has always been an issue in the economic development world -- what are the programs available for existing businesses."

Right-to-work law

Nixon first unveiled his proposals Monday. State Sen. Jason Crowell, R-Cape Girardeau, who has been critical of how state economic development programs are run, issued a release saying he didn't like Nixon's new proposals that provide increased tax credits or grants to businesses.

A more effective approach would be to enact a right-to-work law and stop its minimum wage from exceeding the national average, Crowell said.

Nixon dismissed those criticisms and said his proposals do not increase the amount of money Missouri dedicates to business incentives but instead increases the amount used to help existing businesses.

"We are making the programs smarter," Nixon said.

rkeller@semissourian.com

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