Blunt plans special session

JEFFERSON CITY — Gov. Matt Blunt plans to call lawmakers into a special session starting Aug. 20 to consider an economic development package and a measure that could help speed up repairs to Missouri’s bridges.

House Speaker Rod Jetton sent an e-mail Thursday to fellow Republican legislators outlining the governor’s plans for the special session. Blunt has not yet officially called lawmakers into session.

Jetton said the economic development bill will include $51 million of tax breaks in its initial year, rising to about $70 million in later years.

The other measure is intended to fix a glitch that has been delaying the Department of Transportation’s plan to award a single bid to repair and maintain about 800 bridges.

In early July, Blunt vetoed a bill containing a wide range of tax breaks that he said could have cost the state about $200 million. The Republican governor, who generally backs tax cuts, said the legislation had errors and would have given tax breaks to some questionable causes.

But he indicated that he would summon lawmakers back for a special session if they could agree on a slimmed-down economic development bill.

Jetton proclaimed July 19 that key House and Senate members had agreed on a package. The version he outlined Thursday differs only slightly. Among its key provisions, the bill would:

•Increase from $12 million to $40 million the annual cap on Quality Jobs tax credits. The program created in 2005 rewards employers who add jobs with a wage at least as high as the county average and who also pay for half their employees’ health insurance premiums.

The Quality Jobs provision is key to Blunt and would be more generous than the bill the governor vetoed. The original measure would have increased the annual tax credit cap to $30 million.

•Increase from $7 million to $14 million the annual tax credits available under the state’s Enhanced Enterprise Zone program, a smaller increase than originally proposed.

•Provide up to $10 million in tax credits annually, with a total cap of $95 million, to redevelopers who assemble large parcels of land in impoverished areas. The provision, backed by St. Louis developer Paul McKee Jr., originally would have allowed up to $12 million in annual credits with a total cap of $100 million.

•Create a state tax credit to match one already offered by the federal government for certain entrepreneurial investors. The tax credits could cost the state about $15 million annually, but wouldn’t have to be paid out until after the projects are completed.

•Raise the state’s annual allotment of tax credits for Missouri-made movies from the current $1.5 million to $4.5 million.

Jetton said a separate bill would be introduced to address Missouri bridge repairs.

The transportation department delayed plans last month to choose a contractor for its massive bridge repair program because of requirements for the performance bonds the contractor would need.

Jetton said the current bonding language essentially allows a contractor to only design and build the bridge, and new language is needed to allow the contractor to maintain the bridge over the 30 years envisioned by the transportation department.

The program is expected to cost $400 million to $600 million and seeks to fix or replace nearly 80 percent of Missouri’s substandard bridges by the end of 2012.