The Labor-Management Council of Greater Kansas City

The Missouri Energy Symposium, which will include news on efforts to hire veterans, features a stellar lineup of speakers June 6, 10:30 a.m.-1 p.m. at the Liberty Memorial. Speakers include national Building Trades President Sean McGarvey, Gov. Jay Nixon, Mayor Sly James, key Canadian diplomats and the president of the American Petroleum Institute. For questions call 573-634-2914.

LMC Analyzes Legislative Sessions

LMC Legislative Agenda Update 

During the 2012 legislative sessions in Missouri and Kansas, our focus was more on preventing certain bills and provisions from passing.  Despite a strong push from key legislative leaders in Missouri, neither “right-to-work,” prevailing wage changes came to a floor vote.  A cut in the historic tax credit cap did pass the Senate but never came to House vote.  In Kansas, we successfully fought back attempts in the budget bill to impose new immigration enforcement requirements on state contractors and to shift funds from the transportation plan. 

Federal

•Support construction of a downtown Kansas City, Mo. federal office building.

Results:  Construction of a building remains possible but likely several years away 

•Support construction of the Keystone pipeline project.

Results:  First proposal rejected by the President but a new application has been made and is under consideration.  Legislation requiring approval is possible. 

Watch List:

 •Oppose a benefits tax in  federal health care reform; Any future stimulus funds include significant vertical construction projects.

Results:  No changes or additional stimulus funds.

Missouri

•The LMC supports reasonable and effective economic development incentives.  While the LMC supports ensuring that tax credits and other incentives are cost effective, we want to preserve those tax credits crucial to economic development such as the historic tax credit, tax increment financing.  The LMC also supports enhancing the Quality Jobs program.  The LMC also supports enhanced education and training tax credits, as long as those programs include existing construction apprenticeship and journeyman training programs.  Evaluation of projects supported by the Quality Jobs Act and other tax credit programs should include the impact of construction jobs created by the programs.  The LMC also supports cost effective credits for solar energy development.

Result:  No significant changes to state economic development policies 

•The LMC opposes SB 438 and similar legislation to impose “right-to-work.”

Result:  No floor vote taken on any “right-to-work” bill in either house 

•The LMC supports maintaining and increasing Medicaid eligibility and adequate provider reimbursement. 

Result:  No significant changes 

•The LMC supports maintaining or increasing funding for programs that foster economic development and provide critical services, particularly education, childcare subsidies for working parents and arts development.

Result:  No significant changes 

•The LMC supports restoration of Missouri programs that foster economic development and provide critical services such as Medicaid, education, the arts, childcare subsidies for working parents and others. 

Result:  No significant changes 

•The LMC supports state funding for a comprehensive transportation plan.

Result:  No new transportation plan moved forward 

•The LMC supports Prevailing Wage in its present form. 

Result:  No changes to Prevailing Wage came to a vote in either house 

•The LMC opposes TABOR (taxpayer bill of rights). 

Result:  No TABOR-like bill passed or will be sent to voters 

•The LMC endorses retention of the Missouri Plan for judicial selection and the similar policy that exists in Kansas.

Result:The legislature sent to the ballot a change in the plan for appeals judges that gives the governor an extra appointment rather than a member of the judiciary.  While not as significant a change as some proposals, passage of this would further politicize judicial appointments. 

•The LMC opposes attempts to ban affirmative action programs.

Result:  No action taken 

•The LMC supports development of a statutory framework for public employee collective bargaining in Missouri to reduce uncertainty for workers and for public employers. 

Result:  No action taken. 

Watch:  Unemployment Insurance, Workers Compensation, Utility Rates & Energy Capacity, Education/Kansas City School District.

Result:  The only legislation passed was to make it more difficult for an employee to sue a fellow employee in a workers’ compensation case. 

Kansas

•The LMC supports reasonable and effective economic development incentives.

Result:  No significant changes; tax reform retained the angel tax credit and other incentives 

•The LMC supports continued funding for the comprehensive transportation plan.

Results: An attempt to shift transportation plan funds to education was opposed by the LMC and was defeated 

•The LMC opposes immigration reform proposals that would put the burden of I-9 verification on contractors for subcontractors.  Verification responsibility should fall only on the direct employer of those workers.

Result: A proposal to put immigration enforcement burdens on contractors for subcontractors passed the House but was deleted in budget conference committee.  The LMC expressed strong opposition. 

Watch:  Kansas “driveway” tax (proposed requirement for impact study if increasing user fees)

Result:  Attorney general issued an opinion against the “driveway” tax but no legislation was passed.

Local

•The LMC opposes elimination of the Kansas City, Mo. city earnings tax until an alternative is in place.

Result:  No changes to the earnings tax and none recommended by the Mayor’s revenue commission.

 Watch:  Bidding practices in local governments, particularly regarding design build in KCMO and Johnson County (KS), KCMO Development Code, Jackson County implementation of PACE.

Result:  No significant changes but each issue requires continued attention.

 

KC Fed President Outlines Hopes, Risks for Economy

The LMC Construction Industry Committee benefitted from a frank and fascination discussion with Esther George, President of the Federal Reserve Bank of Kansas City, at its May 11, 2012 meeting at Mark One Electric Co., Inc.

 George, who succeeded Tom Hoenig last fall, expressed her commitment to keeping in touch with business and labor leaders throughout the Kansas City Fed’s region, and to bringing that perspective to the Fed’s Open Market Committee.  She noted that the committee includes both regional Fed presidents, chosen by those banks’ boards, and Presidential appointees for a unique mix of national and regional perspectives.  (Note:  it appears that the U.S. Senate will vote soon on the next two Presidential appointees to the national board) 

The economy is recovering steadily but slowly, George said, reflecting the depth and nature of the recession.  She pegged an expected growth rate of about 2.5% for the remainder of the year, positive though not enough to fully restore employment.  Consumers in particular are still addressing relatively high leverage and while spending is improving that debt will limit growth.  She also cited many comments of business uncertainty, including uncertainty about consumer spending, government tax and regulatory policies and energy cost trends.

While the trajectory is positive, George expressed concern about three threats to continued expansion:  effects from the European attempt to address debt, fiscal policy (particularly if both automatic budget cuts and expiration of the Bush tax cuts hit as scheduled in 2013) and monetary policy (unintended consequences of a long period of zero interest rates).  She noted that a key will be how the U.S. addresses its long-term debt issue, and the balance between cutting long-term debt while not contracting the economy in the short term. 

George noted that the construction industry’s recovery is “tepid.”  Positive signs exist and lending is opening up somewhat but it will require longer for construction demand to catch up with the rest of the economy, she estimated.  Some banks more heavily involved in construction loans are taking longer to recover.  Developers and contractors must be creative in generating financing, she said.  Participants noted that the Kansas City construction industry is implementing creative means to reduce risk for users and financiers.

She also pointed out, and participants agreed, that appraisal values were lagging behind the market and limiting the ability to make loans.

A delegation from the Construction Committee met last summer with Hoeing, George and leaders of area banking industry.  On the day of the meeting, it was announced that the federal government’s credit rating would get a downgrade.  On this morning there were more revelations about the $2 billion trading loss by J.P. Morgan.  George pointed out that banks were resisting rules being written to implement the Dodd-Frank reform bill and that the J.P. Morgan example showed both the importance of and the vagaries of implementing the Volker Rule.

Dodd-Frank also sets up procedures for addressing “too big to fail” institutions, but until that is tested no one knows if the will to actually close an institution will be there, she said.  The system needs banks of a variety of sizes but some banks may be too big.  She noted that her predecessor Hoenig was just getting started as vice chair of the FDIC to help address these issues.

Changing dynamics in the labor market are also slowing recovery, George said.  She agreed with a questioner that the way employment statistics are reported does not always reflect reality.

Regardless of the Supreme Court decision on the Affordable Health Care Act, she added, the U.S. must address health care with real changes.  George pointed out tat the relationship between what is spent and the results lags the rest of the world, and demographics dictate increasing demand in the future. 

After the bank president left, the full room of participants expressed confidence in her leadership and her willingness to listen and discuss issues with the committee.

 

Construction Committee Meets with KC Fed President Esther George

Construction Industry Steering Team Summary of Minutes

 8 a.m., Friday, May 11, 2012, Mark One Electric Co., Inc.

Attending: Terry Akins, Sam Alpert, Frank Anderson, Jack Bainbridge, Rosana Privitera-Biondo,  Troy Carlson, Greg Chastain, Jim Delaney, Janice Dickey, Theresa Garza-Ruiz, Esther George, Don Greenwell, Scott Hoisington, Delores Jackson, Steve Janasz, Dennis Joyce, Garry Kemp, Dave Kendrick, Kevin King, Bill Livingston, Amy McDonald, Dan Osman, Diane Raley, Thad Schurter, Sandra Walker, Colleen White, Tom Whittaker, Bob Jacobi.

•Introductions and thanks to Rosie Biondo and Mark One for hosting.

•Presentation by and discussion with Esther George, President, Federal Reserve Bank of Kansas City, regarding the economy and financial system. (more details of the discussion to be posted on the LMC blog).

•Presentation and discussion with Sandra Walker and Delores Jackson, City of Kansas City, Mo., regarding Section 3 compliance.

•Presentation and discussion with Amy McDonald, Chase/Union Plus home mortgage benefit.

•The Missouri and Kansas legislatures are nearing completion, but require vigilant monitoring as many issues remain unsettled.  Missouri has completed its budget process and Kansas is close.

•On June 6 an energy symposium related to Helmets to Hardhats will take place 10:30 a.m.-1:30 p.m. at the Liberty Memorial.  Speakers include Sean McGarvey, national Building Trades president; Gov. Jay Nixon; Canadian Ambassador Gary Doer; KCMO Mayor Sly James and others.  RSVP by May 29 to [email protected] or 573-634-2914.

•The LMC Board tabled the proposal for the LMC to take a lead role on prevailing wage FOI requests when multiple crafts are involved.

•The next meeting will return to the regular schedule and be on Thursday, June 14, 8 a.m. at Mark One Electric Co., Inc., 909 Troost.

•M/S/C to adjourn.

•Upcoming Events:

 *Builders’ Association Scholarship Golf Tournament, May 14, Milburn Country Club (one

   foursome spot left at presstime)

  *KCCREW Luncheon, KCI development, 11:30 a.m. May 15, National Golf Club

  *KCMO Streetcar Hearings, 4-7 p.m., May 15 @ Downtown Library, May 16 at Steamboat

    Arabia Museum, May 17 at Union Station

  *KCASA Sport Shoot, May 18, Powder Creek

  *SMACNA Associate Member Golf Tournament, 11:30 a.m., May 22, Shoal Creek

  *Minority/Women Coalition, Mike Sanders, 11:30 a.m., June 4, KC Public Library

  *Energy Symposium, June 6, 10:30 a.m.-1:30, Liberty Memorial

  *Rockhurst University Freeman Golf Tournament, June 11, Milburn

  *Working Families Friend Golf Tournament, June 20, Teetering Rocks

  *Major League Baseball All-Star Week July 6-10

  *Mid-America Labor/Management Conference, July 15-18, Lodge of the Four Seasons

  *DBIA & ASA Summer Social, July 19, 4 p.m., Burns & McDonnell

  *LMC Golf Tournament, July 23, Oakwood Country Club

  *GKC Building Trades Golf Tournament, Aug. 16, Eagles Landing Golf Club

  *KC CREW Golf Tournament, Meadowbrook, Aug. 20

  *Dave Peterson Memorial Golf Tournament, Aug. 26

  *Working Families Friend Fall Cookout, Sept. 6

  *ASA Golf Tournament, Oct. 5, 11 a.m., Tiffany Greens

  *iBuild Showcase, April 26, 2013, Bartle Hall

 

A reminder that the May Construction Industry Committee meeting will be on the 2nd Friday, May 11, rather than the usual 2nd Thursday. The time, 8 a.m., and place, Mark One Electric Co., Inc., will be the same. The meeting's participants will include Esther George, president of the Federal Reserve Bank of Kansas City.