Politics
Tax breaks for Boeing are complicated in St. Louis County
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BERKELEY — If you spend any time traveling the roads north of Lambert International Airport, you know the landscape doesn’t vary much.Enormous warehouses and manufacturing facilities are the norm except for about 110 acres nestled between Interstate 170 and the northeastern part of the airport’s property.This site feels forgotten.Thick vegetation lines the uneven gravel roads, and trees erupt through leftover concrete and asphalt pads, some rising at least 30 feet high.In the summer, the insects around generate such a cacophony you could mistake this for the Missouri wilderness until a plane passes overhead.But this place may soon become more like the rest of the area around Lambert. Boeing Co. has plans to transform it and a nearly 50-acre site to the west into multiple buildings totaling 1 million square feet of new advanced manufacturing space.The project comes with a $1.8 billion price tag and would add to Boeing’s already sprawling campus nearby.“This is key to significantly growing our advanced manufacturing capabilities,” Randell Gelzer, Boeing’s senior director of state and local government operations, said during a meeting with the Airport Commission last month. “This will allow us to compete for those next franchise programs in St. Louis.”
St. Louis Airport CommissionThe master plan to Boeing’s proposed $1.8 billion expansion near Lambert International Airport
Details on exactly what Boeing wants to make with the new manufacturing space are sparse. The proposal does come a few months after the Air Force formally started its search for a contractor to engineer and supply its next-generation fighter jets, but details are highly classified, and the contract won’t be awarded until next year.Still, the development would be significant for the region, said Jason Hall, CEO of Greater St. Louis Inc., which promotes economic growth in the region.“This is St. Louis on the rise,” he said. “These are the kinds of deals I feel like we’ve missed in the past.”It’s the largest investment in the region in recent memory, Hall said, even eclipsing the National Geospatial Agency’s new $1.7 billion headquarters north of downtown St. Louis.“Just the construction phase alone of a $1.8 billion spend — I mean you get a feel for that at the NGA,” he said.And after construction, Boeing promises the project will create 500 jobs centered in north St. Louis County.That prospect has St. Louis County Councilwoman Rita Heard Days enthused. The Democrat’s district includes a portion of the proposed development.“It bodes well for the entire north county community, which has kind of like a black eye at this particular point,” she said. “I think this will be an economic boon.”
Eric Schmid
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St. Louis Public Radio A billboard promoting Boeing on Aug. 16 at Airport Road and James S. McDonnell Boulevard in Berkeley. The company is seeking tax incentives to develop the land behind the billboard as part of an expansion of its manufacturing footprint.
‘Tone-deaf timing’But the project has come under intense criticism too because of the real and personal property tax breaks Boeing is seeking from the county council to the tune of $155 million over 10 years.Fellow Democrat Kelli Dunaway recalls when the abatement first appeared on the council’s agenda.“Wow, that’s some really tone-deaf timing — that honestly was my first reaction,” she said.It came just weeks after the council rejected a freeze on property taxes for seniors by a vote of 4-3. (Republican Councilman Dennis Hancock has introduced legislation that revives this prospect.)“It feels like it’s contributing to the idea that the system is rigged and that the people that deserve tax breaks are the ones that need them least,” Dunaway said.Dennis Ganahl, managing director of MO Tax Relief Now, said his email blew up when Boeing’s request for an abatement became widely known. His group had lobbied the council to pass the freeze on taxes for seniors.“People were so angry,” he said. “A lot of the conversation was about: ‘We’re not even surprised this was the kind of thing that St. Louis County would do to seniors.’”To Ganahl, it’s a crystalized example of a local government choosing who or what it values more.“This is a real conundrum for them,” he said. “Do we take care of the big (multibillion-) dollar corporation? Or do we take care of our seniors who are fighting to stay in their homes?”The political optics of this moment aren’t great, and the members of the county council who voted against the senior property tax freeze, including Days and Dunaway, said it would set a bad precedent.“Who will be next? Will we do folks with disabilities? Single parents?” Days said. “It’s a lot of folks that could say, ‘I’m overburdened with taxes.’ We all are overburdened with taxes quite frankly, because folks don’t like taxes, they don’t want to pay them.”Dunaway said it’s unfair for the county council to pick one group or organization to benefit more than another.“It feels like everyone wants something for nothing and then will expect the same service from St. Louis County without contributing to what it would take to deliver services,” she said.
Eric Shindelbower
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The Boeing CompanyA Boeing production employee works on an F/A-18 Hornet in Hazelwood.
Are big tax breaks effective?The proposal also comes after St. Louis County had to cover a $40 million budget deficit late last year.A freeze on seniors’ property taxes would mean the county government loses revenue over time, while Boeing’s request for a 50% abatement on real and personal property taxes only applies to new investment and not to any existing taxes the company pays. St. Louis County would effectively bring in $155 million over 10 years in revenue if the council approves Boeing’s proposal.“We’re not getting this revenue if we don’t build there,” Dunaway said. “It would be flat for us.”Boeing said in a statement that it welcomes scrutiny from different public bodies on this proposal and the tax breaks around it.“The fact that everybody knows for St. Louis that it’s Boeing surprises me,” said Bruce McDonald, a professor of public budgeting and finance at North Carolina State University.Companies seeking these kinds of incentives from state or local governments usually try to stay anonymous for as long as they can, he said.McDonald has studied how effective tax incentives are at attracting and retaining businesses. They’re a mixed bag when it comes to driving long-term economic growth, he said.
Eric Schmid
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St. Louis Public RadioWeeds poke up through an abandoned concrete pad on property east of Lambert International Airport on Aug. 16. This is part of the 160 acres Boeing wants to develop into advanced manufacturing space.
They’re not particularly great at keeping a business in a community when that company has indicated it wants out, McDonald said. Those businesses were going to leave anyway, he added.“(But) coming in and redeveloping an area that hasn’t really had a lot of economic development tends to actually be fairly successful,” McDonald said. “Because you’re taking land and making it more useful.”Incentives geared toward labor activities, like training people to work or increasing a company’s size, can also produce returns as people in the community begin to make more and contribute more in taxes, he added.“It might be slow to grow over time, but long term you’re likely to come out at least in a fairly good position,” he said.And there are ways local or state governments can ensure incentives are more effective for their communities, McDonald added. Clawback requirements are one, and another can be a requirement that the company in question specifically reinvest into the local community, he said.There are clawbacks in the Boeing proposal: The company has to create 500 new jobs and not allow its St. Louis workforce to drop below 12,100 people during the plan’s 10-year lifespan. Boeing is one of the region’s largest employers, with 16,000 workers in the region, leaving room to cut close to 4,000 jobs.“I found it incredibly insulting,” Dunaway said. “I just feel like if I could see more broader investment and a commitment to St. Louis and to this region, it would be easier to swallow that pill.”She said she would like to see Boeing also invest in something that can contribute to all St. Louis County residents, like a community center.Boeing touts its commitment to Missouri, pointing out the $13 million it made in charitable gifts in the state in 2022. Last year, the company also pushed $5 million into the Advanced Manufacturing Innovation Center coming to north St Louis, and in 2021 it committed to building a drone production facility at MidAmerica St. Louis Airport in the Metro East.
Kevin Flynn
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The Boeing CompanyA F-15K Slam Eagle, an American all-weather multirole strike fighter, takes the sky in November 2007 during a ferry flight to South Korea.
Boeing’s next phase Business leaders across the area argue this new development from Boeing builds on the legacy of the aerospace industry in the area and will boost the region’s profile in the sector moving forward.This level of investment in a likely new product line also telegraphs where Boeing intends to be in the future, Hall of Greater St. Louis said.“That’s when you’re most vulnerable,” he said. “You want to make sure and not take for granted that just because somebody is here now, that they will always be here in the future.”Plus, this investment would ripple across Missouri to the hundreds of suppliers Boeing has in the state, Hall added.“It’s like an auto plant,” he said. “Everybody wants these because it’s like the golden goose that keeps on feeding other companies and jobs that aren’t even their direct employees.”But to secure the commitment, St. Louis County needs to play ball with the incentives it provides, Days said.“St. Louis needs to be in a position where it can compete. Period,” she said.Legislation for the tax breaks was introduced at the county council this week. A final vote on the matter could come as soon as Sept. 19.Jason Rosenbaum and Rachel Lippmann contributed to this article.
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Poll: Support for Missouri abortion rights amendment growing

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A proposed constitutional amendment legalizing abortion in Missouri received support from more than half of respondents in a new poll from St. Louis University and YouGov.That’s a boost from a poll earlier this year, which could mean what’s known as Amendment 3 is in a solid position to pass in November.SLU/YouGov’s poll of 900 likely Missouri voters from Aug. 8-16 found that 52% of respondents would vote for Amendment 3, which would place constitutional protections for abortion up to fetal viability. Thirty-four percent would vote against the measure, while 14% aren’t sure.By comparison, the SLU/YouGov poll from February found that 44% of voters would back the abortion legalization amendment.St. Louis University political science professor Steven Rogers said 32% of Republicans and 53% of independents would vote for the amendment. That’s in addition to nearly 80% of Democratic respondents who would approve the measure. In the previous poll, 24% of Republicans supported the amendment.Rogers noted that neither Amendment 3 nor a separate ballot item raising the state’s minimum wage is helping Democratic candidates. GOP contenders for U.S. Senate, governor, lieutenant governor, treasurer and secretary of state all hold comfortable leads.“We are seeing this kind of crossover voting, a little bit, where there are voters who are basically saying, ‘I am going to the polls and I’m going to support a Republican candidate, but I’m also going to go to the polls and then I’m also going to try to expand abortion access and then raise the minimum wage,’” Rogers said.Republican gubernatorial nominee Mike Kehoe has a 51%-41% lead over Democrat Crystal Quade. And U.S. Sen. Josh Hawley is leading Democrat Lucas Kunce by 53% to 42%. Some GOP candidates for attorney general, secretary of state and treasurer have even larger leads over their Democratic rivals.
Brian Munoz
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St. Louis Public RadioHundreds of demonstrators pack into a parking lot at Planned Parenthood of St. Louis and Southwest Missouri on June 24, 2022, during a demonstration following the Supreme Court’s reversal of a case that guaranteed the constitutional right to an abortion.
One of the biggest challenges for foes of Amendment 3 could be financial.Typically, Missouri ballot initiatives with well-funded and well-organized campaigns have a better chance of passing — especially if the opposition is underfunded and disorganized. Since the end of July, the campaign committee formed to pass Amendment 3 received more than $3 million in donations of $5,000 or more.That money could be used for television advertisements to improve the proposal’s standing further, Rogers said, as well as point out that Missouri’s current abortion ban doesn’t allow the procedure in the case of rape or incest.“Meanwhile, the anti side won’t have those resources to kind of try to make that counter argument as strongly, and they don’t have public opinion as strongly on their side,” Rogers said.There is precedent of a well-funded initiative almost failing due to opposition from socially conservative voters.In 2006, a measure providing constitutional protections for embryonic stem cell research nearly failed — even though a campaign committee aimed at passing it had a commanding financial advantage.Former state Sen. Bob Onder was part of the opposition campaign to that measure. He said earlier this month it is possible to create a similar dynamic in 2024 against Amendment 3, if social conservatives who oppose abortion rights can band together.“This is not about reproductive rights or care for miscarriages or IVF or anything else,” said Onder, the GOP nominee for Missouri’s 3rd Congressional District seat. “Missourians will learn that out-of-state special interests and dark money from out of state is lying to them and they will reject this amendment.”Quade said earlier this month that Missourians of all political ideologies are ready to roll back the state’s abortion ban.“Regardless of political party, we hear from folks who are tired of politicians being in their doctor’s offices,” Quade said. “They want politicians to mind their own business. So this is going to excite folks all across the political spectrum.”
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Democrat Mark Osmack makes his case for Missouri treasurer

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Mark Osmack has been out of the electoral fray for awhile, but he never completely abandoned his passion for Missouri politics.Osmack, a Valley Park native and U.S. Army veteran, previously ran for Missouri’s 2nd Congressional District seat and for state Senate. Now he’s the Democratic nominee for state treasurer after receiving a phone call from Missouri Democratic Party Chairman Russ Carnahan asking him to run.“There’s a lot of decision making and processing and evaluation that goes into it, which is something I am very passionate and interested in,” Osmack said this week on an episode of Politically Speaking.Osmack is squaring off against state Treasurer Vivek Malek, who was able to easily win a crowded GOP primary against several veteran lawmakers including House Budget Chairman Cody Smith and state Sen. Andrew Koenig.While Malek was able to attract big donations to his political action committee and pour his own money into the campaign, Osmack isn’t worried that he won’t be able to compete in November. Since Malek was appointed to his post, Osmack contends he hasn’t proven that he’s a formidable opponent in a general election.“His actions and his decision making so far in his roughly two year tenure in that office have been questionable,” Osmack said.Among other things, Osmack was critical of Malek for placing unclaimed property notices on video gaming machines which are usually found in gas stations or convenience stores. The legality of the machines has been questioned for some time.As Malek explained on his own episode of Politically Speaking, he wanted to make sure the unclaimed property program was as widely advertised as possible. But he acknowledged it was a mistake to put the decals close to the machines and ultimately decided to remove them.Osmack said: “This doesn’t even pass the common sense sniff test of, ‘Hey, should I put state stickers claiming you might have a billion dollars on a gambling machine that is not registered with the state of Missouri?’ If we’re gonna give kudos for him acknowledging the wrong thing, it never should have been done in the first place.”Osmack’s platform includes supporting programs providing school meals using Missouri agriculture products and making child care more accessible for the working class.He said the fact that Missouri has such a large surplus shows that it’s possible to create programs to make child care within reach for parents.“It is quite audacious for [Republicans] to brag about $8 billion, with a B, dollars in state surplus, while we offer next to no social services to include pre-K, daycare, or child care,” Osmack said.Here’s are some other topics Osmack discussed on the show:How he would handle managing the state’s pension systems and approving low-income housing tax credits. The state treasurer’s office is on boards overseeing both of those programs.Malek’s decision to cut off investments from Chinese companies. Osmack said that Missouri needs to be cautious about abandoning China as a business partner, especially since they’re a major consumer of the state’s agriculture products. “There’s a way to make this work where we are not supporting communist nations to the detriment of the United States or our allies, while also maintaining strong economic ties that benefit Missouri farmers,” he said.What it was like to witness the skirmish at the Missouri State Fair between U.S. Sen. Josh Hawley and Democratic challenger Lucas Kunce.Whether Kunce can get the support of influential groups like the Democratic Senatorial Campaign Committee, which often channels money and staff to states with competitive Senate elections.
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As Illinois receives praise for its cannabis equity efforts, stakeholders work on system’s flaws

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Medical marijuana patients can now purchase cannabis grown by small businesses as part of their allotment, Illinois’ top cannabis regulator said, but smaller, newly licensed cannabis growers are still seeking greater access to the state’s medical marijuana customers.Illinois legalized medicinal marijuana beginning in 2014, then legalized it for recreational use in 2020. While the 2020 law legalized cannabis use for any adult age 21 or older, it did not expand licensing for medical dispensaries.Patients can purchase marijuana as part of the medical cannabis program at dual-purpose dispensaries, which are licensed to serve both medical and recreational customers. But dual-purpose dispensaries are greatly outnumbered by dispensaries only licensed to sell recreationally, and there are no medical-only dispensaries in the state.As another part of the adult-use legalization law, lawmakers created a “craft grow” license category that was designed to give more opportunities to Illinoisans hoping to legally grow and sell marijuana. The smaller-scale grow operations were part of the 2020 law’s efforts to diversify the cannabis industry in Illinois.Prior to that, all cultivation centers in Illinois were large-scale operations dominated by large multi-state operators. The existing cultivators, mostly in operation since 2014, were allowed to grow recreational cannabis beginning in 2019.Until recently, dual-purpose dispensaries have been unsure as to whether craft-grown products, made by social equity licensees — those who have lived in a disproportionately impacted area or have been historically impacted by the war on drugs — can be sold medicinally as part of a patient’s medical allotment.Erin Johnson, the state’s cannabis regulation oversight officer, told Capitol News Illinois last month that her office has “been telling dispensaries, as they have been asking us” they can now sell craft-grown products to medical patients.“There was just a track and trace issue on our end, but never anything statutorily,” she said.
Dilpreet Raju
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Capitol News IllinoisThe graphic shows how cannabis grown in Illinois gets from cultivation centers to customers.
No notice has been posted, but Johnson’s verbal guidance comes almost two years after the first craft grow business went online in Illinois.It allows roughly 150,000 medical patients, who dispensary owners say are the most consistent purchasers of marijuana, to buy products made by social equity businesses without paying recreational taxes. However — even as more dispensaries open — the number available to medical patients has not increased since 2018, something the Cannabis Regulation Oversight Office “desperately” wants to see changed. Johnson said Illinois is a limited license state, meaning “there are caps on everything” to help control the relatively new market.Berwyn Thompkins, who operates two cannabis businesses, said the rules limited options for patients and small businesses.“It’s about access,” Thompkins said. “Why wouldn’t we want all the patients — which the (adult-use) program was initially built around — why wouldn’t we want them to have access? They should have access to any dispensary.”Customers with a medical marijuana card pay a 1% tax on all marijuana products, whereas recreational customers pay retail taxes between roughly 20 and 40% on a given cannabis product, when accounting for local taxes.While Illinois has received praise for its equity-focused cannabis law, including through an independent study that showed more people of color own cannabis licenses than in any other state, some industry operators say they’ve experienced many unnecessary hurdles getting their businesses up and running.The state, in fact, announced last month that it had opened its 100th social equity dispensary.But Steve Olson, purchasing manager at a pair of dispensaries (including one dual-purpose dispensary) near Rockford, said small specialty license holders have been left in the lurch since the first craft grower opened in October 2022.“You would think that this would be something they’re (the government) trying to help out these social equity companies with, but they’re putting handcuffs on them in so many different spots,” he said. “One of them being this medical thing.”Olson said he contacted state agencies, including the Department of Financial and Professional Regulation, months ago about whether craft products can be sold to medical patients at their retail tax rate, but only heard one response: “They all say it was an oversight.”This potentially hurt social equity companies because they sell wholesale to dispensaries and may have been missing out on a consistent customer base through those medical dispensaries.Olson said the state’s attempts to provide licensees with a path to a successful business over the years, such as with corrective lotteries that granted more social equity licenses, have come up short.“It’s like they almost set up the social equity thing to fail so the big guys could come in and swoop up all these licenses,” Olson said. “I hate to feel like that but, if you look at it, it’s pretty black and white.”Olson said craft companies benefit from any type of retail sale.“If we sell it to medical patients or not, it’s a matter of, ‘Are we collecting the proper taxes?’ That’s all it is,” he said.State revenue from cannabis taxes, licensing costs and other fees goes into the Cannabis Regulation Fund, which is used to fund a host of programs, including cannabis offense expungement, the general revenue fund, and the R3 campaign aiming to uplift disinvested communities.For fiscal year 2024, nearly $256 million was paid out from Cannabis Regulation Fund for related initiatives, which includes almost $89 million transferred to the state’s general revenue fund and more than $20 million distributed to local governments, according to the Illinois Department of Revenue.Medical access still limitedThe state’s 55 medical dispensaries that predate the 2020 legalization law, mostly owned by publicly traded multistate operators that had been operating in Illinois since 2014 under the state’s medical marijuana program, were automatically granted a right to licenses to sell recreationally in January 2020. That gave them a dual-purpose license that no new entrants into the market can receive under current law.Since expanding their clientele in 2020, Illinois dispensaries have sold more than $6 billion worth of cannabis products through recreational transactions alone.Nearly two-thirds of dispensaries licensed to sell to medical patients are in the northeast counties of Cook, DuPage, Kane, Lake and Will. Dual-purpose dispensaries only represent about 20 percent of the state’s dispensaries.While the state began offering recreational dispensary licenses since the adult-use legalization law passed, it has not granted a new medical dispensary license since 2018. That has allowed the established players to continue to corner the market on the state’s nearly 150,000 medical marijuana patients.But social equity licensees and advocates say there are more ways to level the playing field, including expanding access to medical sales.Johnson, who became the state’s top cannabis regulator in late 2022, expressed hope for movement during the fall veto session on House Bill 2911, which would expand medical access to all Illinois dispensaries.“We would like every single dispensary in Illinois to be able to serve medical patients,” Johnson said. “It’s something that medical patients have been asking for, for years.”Johnson said the bill would benefit patients and small businesses.“It’s something we desperately want to happen as a state system, because we want to make sure that medical patients are able to easily access what they need,” she said. “We also think it’s good for our social equity dispensaries, as they’re opening, to be able to serve medical patients.”Rep. Bob Morgan, D-Deerfield, who was the first statewide project coordinator for Illinois’ medical cannabis program prior to joining the legislature, wrote in an email to Capitol News Illinois that the state needs to be doing more for its patients.“Illinois is failing the state’s 150,000 medical cannabis patients with debilitating conditions. Too many are still denied the patient protections they deserve, including access to their medicine,” Morgan wrote, adding he would continue to work with stakeholders on further legislation.Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
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