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Parson stresses workforce, infrastructure needs

Local and state chambers want COVID-19 liability protection passed this session

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During the annual State of the State address delivered in Jefferson City last month, the message of top legislative priorities from Gov. Mike Parson struck a familiar chord with local and state chamber of commerce officials.

Parson stressed during the Jan. 27 speech the need to continue key investments in workforce development and infrastructure – two areas he’s stressed since becoming governor in 2018. His proposed state budget of $34.1 billion for fiscal 2022 is slimmer than the $35.3 billion budget approved by legislators for fiscal 2021.

Parson pointed to successes last year at attracting and expanding businesses amid the coronavirus pandemic. He cited examples in the Springfield area: Amazon.com Inc. (Nasdaq: AMZN), which announced plans in November to build a distribution center in Republic, and expansion projects in Marshfield by Tyler Pipe Co. and Armstrong World Industries Inc. (NYSE: AWI). The new and expanded projects across the state equate to an investment of over $1 billion and nearly 10,000 new jobs, he said.

“All of these announcements highlight Missouri’s increasingly competitive business climate,” he said. “Since 2018, Missouri has jumped from 21st to 11th in the nation among site selectors. This is thanks in large part to the success of our workforce development programs.”

Parson noted through the state Department of Economic Development’s Missouri One Start training program, nearly 100,000 Missourians have received training via partnerships with over 400 companies. The program, originally named Missouri Works, was revamped in 2019.

One recent enrollee in the program is Missouri Prime Beef Packers LLC, which is partnering with Missouri One Start for recruitment assistance at its Pleasant Hope beef processing plant set to open this month.

Parson also touted the success of the Fast Track Workforce Incentive Grant program, which rolled out in 2019. The program is designed to ensure college tuition and fees are fully covered for up to four semesters, when combined with other governmental financial aid. It’s aimed at people ages 25 and older with an average annual household income not exceeding $80,000.

Missouri State University and Ozarks Technical Community College are among two dozen schools in the state offering Fast Track financial aid.

Parson proposes $5.7 million for Fast Track in fiscal 2022 – a 90% boost from $3 million appropriated for the program in fiscal 2021.

Funding priorities
Missouri Chamber of Commerce and Industry President and CEO Dan Mehan said he was encouraged by Parson’s address. Investment in both the workforce and infrastructure line up with legislative priorities for the state chamber and the Springfield Area Chamber of Commerce.

“He is on target on his priorities of making sure we have a well-trained and capable workforce as we emerge from the pandemic and still are recovering from the shutdown,” Mehan said. “He understands the need to have more technologically capable people in the workforce.”

Brian Hammons, president and CEO of Hammons Products Co., said the state’s progress on workforce development in recent years makes it vital to continue those investments to retain and attract companies.

Hammons, who is a Springfield chamber board member and chair of its 24-member legislative policy committee, considers the education system a big component of workforce investment.

“The education system needs to continue to be properly funded at all levels, K-12 and higher education,” he said.

The budget proposal includes roughly $3.6 billion in core funding for public K-12 schools, which meets minimum state law recommendations. Parson also recommended lawmakers restore public four-year colleges to pre-pandemic levels. Higher education was among state funding cuts made last summer.

Other major proposed budget expenditures include $100 million for state facility maintenance and repair, as well as $68.2 million in bonding for 22 state park improvements, such as new campgrounds and electrical and wastewater upgrades.

Additionally, $5 million for rural broadband grants was proposed, which Hammons said is needed now more than ever as the education system was so reliant on virtual teaching in 2020.

“More dollars are helpful, but we also recognize there’s limitations in the state budget,” he said. “The idea of emphasis of continued expansion is the main thing. For rural areas, it’s really important.”

Litigation protection
COVID-19 litigation protection also is among the top priorities for both the state and Springfield chambers of commerce this session. The topic was introduced to lawmakers last year, but the pandemic shortened the session.

“The final four weeks were very condensed with a lot of work that needed to be conducted on the budget,” Mehan said. “We simply ran out of time.”

Parson said during his address he hopes a COVID-19 liability protection bill will be the first piece of legislation to hit his desk.

“Missouri businesses, manufacturers, health care providers, schools, churches and many other entities across the state did not hesitate to step up and help their communities in the fight against COVID-19,” Parson said. “None of these groups should be penalized for their efforts to help. They must be able to continue serving the public without risk of unnecessary claims.”

As of late January, more than 1,600 lawsuits nationwide, including two dozen in Missouri, have been filed against employers due to alleged labor and employment violations related to the coronavirus, according to San Francisco-based law firm Littler Mendelson PC. Mehan and Hammons said they are unaware of any of the cases filed in the state.

“If they are following health and safety guidelines and trying to do the right thing, liability protection can help them from possible lawsuits that might happen down the road,” Hammons said. “Some businesses might hesitate to reopen or provide jobs to get our economy going again if there’s still that potential out there.”

Mehan said he doubts the issue will ever be settled on the federal level, which means states need to pass the legislation on their own.

At least 14 states have enacted liability protections for many businesses from COVID-19 lawsuits, according to the National Conference of State Legislatures. Many other states are considering similar legislation in 2021.

“We’re not trying to protect anyone who is a bad actor and doesn’t try to protect their employees or customers,” Mehan said. “What we’re trying to do is get some sense of certainty and taking fear out of the equation.”

Sens. Tony Luetkemeyer, R-Parkville, and Bill White, R-Joplin, have filed legislation on the issue. Senate Bill 51 establishes protections where an individual or entity engaged in businesses would not be liable in any COVID-19 exposure action unless the plaintiff can prove the defendant engaged in “recklessness or willful misconduct that caused an actual exposure to COVID-19” or the exposure caused personal injury to the plaintiff. The bill currently remains under consideration, according to the Senate website.

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