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Business Journals
6 days ago
- Business
- Business Journals
Stadium funding, disaster aid set to be debated by divided Missouri Senate
Story Highlights Missouri Senate debates bills for stadium funding and disaster relief. Proposed stadium bill would divert $1.5 billion over 30 years. Disaster relief funding criticized as insufficient for affected areas. The first two days of the special legislative session called by Missouri Gov. Mike Kehoe to allocate state money for Kansas City sports stadiums, disaster recovery and unfinished spending bills have gone as well as could be expected. The Missouri Senate is poised for Wednesday debates on all the legislation Kehoe wants passed. And that's when the legislation will move from friendly committees to a chamber compromised by clear Republican factional lines and simmering Democratic anger. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events Some of the potential problems could be solved by which bills go first. The simplest bill would alter the rules governing the Missouri Housing Trust Fund so it could use $25 million included in an appropriations bill to fund home repairs and other assistance in areas hit by natural disasters this year. The biggest gripes about that plan is that the money is too little and spread too thin — federal disaster declarations have been sought for 37 counties so far this year — to do a lot of good. The biggest disaster of the year, and one that has yet to receive a presidential directive allowing federal aid, is a May 16 tornado that carved a 22-mile path across the St. Louis region, damaging or destroying 16,000 structures including hundreds of old brick homes in North St. Louis. People are sleeping in cars to protect their damaged property while they work to rebuild and wait for help, said state Sen. Brian Wililams, a University City Democrat. 'I'm having a severe challenge with even entertaining this, because I don't know how anyone would be able to go back home and look at their neighbors,' Williams said. The bill with the biggest obstacles would use tax money collected from the economic activity at Arrowhead Stadium and Kauffman Stadium in Kansas City to finance renovated or new stadiums. The bill is estimated to divert almost $1.5 billion from state revenues over 30 years. State Sen. Kurtis Gregory, a Marshall Republican and a former NFL player, is sponsoring the bill. The damage it will do to Missouri's national image to lose one or both teams, especially the Chiefs, is as important as the transfer of the economic value to Kansas, Gregory said during a hearing of the Senate Fiscal Review Committee. Kansas is offering to pay 70% of the cost for new stadiums, an offer that is 'very viable,' Gregory said, and must be answered by the end of the month. 'I firmly believe these are Missouri's teams, and if Missouri doesn't have an offer on the table for the teams to even consider, that will speak for itself and how we view then what they bring to our state and our economy,' Gregory said. Lobbyists for the teams would not commit to staying in Missouri if the legislation is passed. That, said state Sen. Mary Elizabeth Coleman, is hard to take for residents of eastern Missouri who remember that Chiefs owner Clark Hunt supported moving the Rams from St. Louis to Los Angeles. 'There was a real begrudgement about whether we were going to root for the Chiefs after the ownership team voted to remove the Rams from this from our side of the state,' said Coleman, a Republican from Arnold. Along with the stadium financing, Gregory's bill includes expanded tax credits for major amateur sporting events and a tax credit of up $5,000 for insurance deductibles paid as a result of disaster damage. The bill where Kehoe's plan could make its biggest political gains is the spending bill. It is mirrored on a construction spending package that the Missouri House refused to consider for a final vote during the regular session. The Senate Appropriations Committee approved two versions Tuesday. One, based on Kehoe's requests, has all the non-general revenue items but only $50 million of the more than $300 million in general revenue spending. Kehoe said he left out the general revenue items because he is concerned about the trend of little growth in state revenues. He cut in half a line item to support a new research reactor at the University of Missouri, leaving $25 million and using the other half for the disaster relief funding. Some lawmakers have called the cut a broken promise to the university. University President Mun Choi, who attended the hearing on the spending bill, said he is happy with the $25 million and the remaining funds will be welcome next year as the multi-year project progresses. 'I am not upset at all,' Choi said. 'I am grateful that the governor and the legislature are considering supporting this very important project here today. There are many other competing interests, especially with the disaster relief in St. Louis, and I really feel for the St. Louisians that are affected.' The other version of the bill is exactly the same as the bill the House spiked. It includes more than 60 projects added by lawmakers, with money to rebuild a sheltered workshop that burned in December and provided needed upgrades at eight hospitals around the state. While many members worried about disaster recovery or the earmarked projects have said they are ready to consider the stadium legislation after those bills are finished, the members of the Missouri Freedom Caucus who have signaled they oppose stadium funding are against it as a government subsidy to wealthy owners. During testimony against the bill, Patrick Tuohey, a senior fellow at the Show Me Institute, summed up why conservatives oppose the bill. 'What's happening here is that the teams want to use Kansas, and want to use fear of losing the teams, to vacuum up as much state subsidies as they can,' said Touhey, who wrote an op-ed about the issue published by The Independent earlier this week. 'And then they are going to come to Jackson County and Clay County and do exactly the same thing, pit them against each other, and try to vacuum up as much public subsidies from taxpayers as possible,' This report originally appeared on Missouri Independent and is republished here under Creative Commons license CC BY-NC-ND 4.0.
Yahoo
28-05-2025
- Business
- Yahoo
Governor Kehoe announces special session
JEFFERSON CITY, Mo. (News-Press NOW) — During a press conference at the Missouri State Capitol, Governor Mike Kehoe announced he has issued an official call for a special session aiming to do a few different things. The session will allow legislators to discuss providing resources to families affected by recent severe storm systems, driving economic development through a tax incentive program and make critical budget appropriations, which will impact Missourians across the state. The General Assembly will convene for the First Extraordinary Session of the First Regular Session in Jefferson City at 12 p.m. on Monday, June 2, 2025, to begin considering Gov Kehoe's priorities. We are proud of all that the General Assembly accomplished during the regular legislative session, but there is still work left to be done," said Gov. Kehoe. "We call on legislators to use this special session as a rare opportunity to support our vulnerable neighbors in their time of need, drive economic development, and make transformative investments in our state. This work is too important to leave unfinished. Several severe storm systems have impacted Missouri over recent months, resulting in the loss of life, as well as significant damage to homes, businesses and public infrastructure. Gov. Kehoe's call for a special session includes legislation to assist Missouri families impacted by recent severe storm systems in areas included in a request for a presidential disaster declaration, like St. Louis. The call includes: * Legislation establishing an income tax deduction for insurance policy deductibles incurred by homeowners and renters due to damages caused by severe weather. * Deductions shall not exceed $5,000 per household per disaster in any calendar year. * Legislation enhancing the utility of the Missouri Housing Trust Fund, administered by the Missouri Housing Development Commission, by expanding eligibility and removing administrative burdens and costs to expedite housing activities and to expand income eligibility for emergency aid. * Appropriating $25 million to the Missouri Housing Trust Fund for general administration of affordable housing activities and to expand income eligibility for emergency aid. In terms of driving economic development, Gov. Kehoe is calling on the General Assembly to help retain both the Kansas City Chiefs and Royals by enacting legislation establishing economic development tools for athletic and entertainment facility projects of professional sports franchises through the Show Me Sports Investment Act. Both the Royals and the Chiefs drive billions of dollars in economic activity through tourism, job creation and small businesses, like hotels, restaurants and retail. The impact of retaining these teams includes: * The Kansas City Chiefs contribute $575 million annually in economic value and over 4,500 jobs in Jackson County alone, bringing the State of Missouri nearly $30 million in annual tax revenue. * a new Royals ballpark district is expected to support 8,400 jobs and generate $1.2 billion in economic output annually. Gov. Kehoe's call also includes: * Enacting legislation to extend the sunset date on tax credits for amateur sporting events. * Appropriating $25 million for the University of Missouri for the planning, design and construction of the Radioisotope Science Center at the University of Missouri Research Reactor (MURR). * Appropriating funding from funds other than the General Revenue Fund for purposes provided for in the Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill 19 in the 2025 regular legislative session.
Yahoo
27-05-2025
- Business
- Yahoo
Missouri governor calls special session for Kansas City stadiums, St. Louis disaster funding
Missouri Gov. Mike Kehoe announces Monday that he will call a special legislative session to consider disaster relief, stadium funding and spending items. (Annelise Hanshaw/Missouri Independent) Disaster recovery, sports stadiums and major capital improvement projects will be on the agenda for a special legislative session that will begin June 2, Gov. Mike Kehoe said Tuesday. At a news conference, Kehoe said he has spoken to legislative leaders in hopes they can act quickly on all three items and set aside hard feelings from the regular session that ended May 15. 'There are some raw nerves out there and some wounded feelings, and I'm asking them to consider that these initiatives that we will put before them are very time sensitive and very needy, especially when it comes to the disaster relief' funding, Kehoe said. A litany of other projects across Missouri that were depending on state funding will not be considered, Kehoe said, including at least two hospitals facing potential closure. Under the Missouri Constitution, lawmakers have 60 days to complete work on items in a special session and Kehoe said he won't try to impose an artificial deadline. But the items on his list all need quick action, he said, especially help for people who lost homes and suffered injuries in the May 16 St. Louis tornado. 'I'm also asking them to consider the tragedy that some of these families have faced in these disasters,' Kehoe said. To help people recovering from tornadoes, flooding and other storms this spring, Kehoe is asking lawmakers to put $25 million into the Missouri Housing Trust Fund and increase the income eligibility threshold for emergency grants. He also wants to enact a tax deduction of up to $5,000 to cover insurance deductibles for people trying to rebuild. Other items on the agenda are: State support for a new Kansas City Royals baseball stadium and major upgrades to Arrowhead Stadium, home of the Kansas City Chiefs. The plan is the same one he unveiled during the final week of the regular legislative session, where it won a strong vote in the Missouri House before dying in the Senate amid bitterness on other bills. Extend the deadline for tax credits related to major amateur sporting events. Allocate $25 million of general revenue funding for the University of MIssouri's research reactor project and $185 million in funding from other sources for capital improvement projects that include a new mental health hospital in Kansas City and new livestock show barn at the Missouri State Fair. Senate Majority Leader Tony Luetkemeyer, a Parkville Republican, said the items in the call for a special session are all things lawmakers should cooperate on. Because of the acrimony in the Senate, all legislation for the special session will start in the upper chamber, Kehoe said, with the House debating whatever bills can make it through. 'The governor's call focuses on providing disaster relief to families devastated by recent storms, funding cancer research at our state's flagship university, and keeping Missouri's beloved professional sports teams in our state,' Luetkemeyer said. 'I'm hopeful the Senate will rise to the occasion.' Senate Minority Leader Doug Beck, a Democrat from Affton, could not be reached for comment. Missouri is still waiting for federal action on a request for disaster assistance through FEMA for the May 16 tornado. On Friday, President Donald Trump approved Missouri's request to declare disasters for southeast Missouri counties hit March 14 and again during the first week of April. The tornado cut a 23-mile-long path, touching down in the affluent suburb of Clayton before ripping through the north side of the city of St. Louis then across the Mississippi River through communities in western Illinois. At least five people were killed, 38 more were injured, and about 5,000 structures were damaged with property losses estimated at more than $1.6 billion. 'I've been on the phone, and Adam Gresham in our office and others have been on the phone with the White House constantly on these events,' Kehoe said, explaining his efforts to secure federal aid. Federal disaster response nationwide has slowed under Trump, causing lawmakers from many states to urge the president to release funding for their states. 'I'm very happy that we got what we got, because you saw some other states not get approved,' Kehoe said. The plan for the Chiefs and Royals would take tax money already generated from activities at the stadiums — $28.8 million annually as estimated by the Chiefs and $15 million annually by an estimate from the Royals — and commit it to bond payments for 30 years for the new or upgraded facilities. The economic activity associated with the Chiefs supports 4,500 jobs, Kehoe contends, and a new stadium for the Royals would generate about 8,400 jobs. Missouri should treat the teams like any other major employer, he said. 'This is the same amount of revenue the state stands to lose if either team relocates to any other state,' Kehoe said. 'But local support is still critical in this effort, and this plan will require local contributions, so I'm asking legislators to work with us to keep these businesses in the state where they belong, the state of Missouri.' Both the Chiefs and Royals have publicly expressed interest in moving from Missouri to Kansas after Jackson County voters rejected a proposal last year to extend a 3/8-cent sales tax to help finance a downtown Kansas City baseball stadium and upgrades to Arrowhead. Kansas lawmakers responded by expanding a tax incentive program in the hopes of convincing one or both teams to relocate. The leases for both teams' Jackson County stadiums run through the end of the 2030 season. Kansas expects an answer by the end of June, creating the pressure for a special session. The limited funding Kehoe proposed for construction spending means several projects he championed during the legislative session — and more than 60 added by lawmakers — won't be funded. The only general revenue project remaining in the bill under Kehoe's plan is $25 million to support construction of a new research reactor at MU. That is half of what he sought originally and was cut to allow spending on disaster aid. The more than 60 projects added by lawmakers ranged from $60,000 for a county maintenance shed in Dallas County to $20 million for redeveloping an historic business district in Cape Girardeau and $20 million to support a new convention center complex in Jefferson City. Kehoe said he thinks he can limit the message to lawmakers outlining the special session agenda to just $50 million in general revenue spending and the projects funded from other sources, including the mental hospital and the livestock barn. The limited funding will dash hopes from many agencies and communities that their project would get a second look. There are at least two hospitals facing potential closure if their funding is not included and a sheltered workshop in Salem that is operating at limited capacity following a devastating fire. Kehoe said he understands the requests but wants to be careful with general revenue spending. 'The state budget years ahead are going to be challenging,' Kehoe said, 'and the amount of general revenue that we have is something that I'm taking very seriously as a businessman, and what it's going to take in future years.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
