As the Democratic caucuses in the U.S. and state Houses now have both fallen into minority status against Republicans, African-American Democrats from St. Louis have been chosen for leadership at the federal and state levels – and taken strong early legislative stands.
U.S. Rep. Wm. Lacy Clay has been elected to serve as one of 12 House Democratic Deputy Whips – his most senior leadership post in his 10-year congressional tenure.
State Rep. Tishaura Jones – who represents District 63, the most east and central neighborhoods of the city – previously had been elected assistant minority leader of the state House.
On Tuesday, Jones took early leadership in pre-filing a bill designed to mitigate the damaging effects of Proposition A on the City of St. Louis’ fiscal status.
Proposition A, passed statewide by an overwhelming margin on Nov. 2, will require voters in St. Louis and Kansas City to renew their respective cities’ 1 percent local earnings tax every five
years, starting April 2011. If voters choose not to renew the tax, that city’s levy would be phased out over 10 years.
Jones’ bill would extend the required renewal period to 20 years.
“This minor change would save us from the unintended consequences to the two cities’ credit ratings,” Jones told The American.
One unintended consequence of Proposition A is the short intervals between renewal votes could make it substantially more expensive for the cities to sell bonds for needed infrastructure improvements.
Potential bondholders could be reluctant to invest in St. Louis or Kansas City, given the possibility that either city might lose a substantial portion of its revenue should voters not renew its earnings tax and be unable to repay the bonds.
St. Louis’ local earnings tax provides 32 percent of its general fund budget, while Kansas City’s tax provides 40 percent.
“I need to show my Republican colleagues the unintended consequences of this initiative and hopefully start a discussion of how to make better St. Louis and Kansas City,” Jones said.
“We need to protect the major revenue sources of the State of Missouri in St. Louis and Kansas City.”
Jones said she expects togain the full support of the black caucus in the state Legislature, but acknowledged an uphill battle against outstate Republicans. Proposition A garnered the largest number of statewide votes on the Nov. 2 ballot, with the strongest support from out-state.
Proposition A also carried the provision that other municipalities in the state would be restricted from passing an earnings tax.
But Jones said the out-state areas would not be impacted by her bill.
“It leaves untouched the provision that says other municipalities in the state can’t enact an earnings tax,” Jones said.
“We’re not even taking away any voter’s opportunity to say, ‘No, we don’t want this.’ The stated intent of Proposition A supporters was to ‘let voters decide’ whether St. Louis and Kansas City should keep their earnings taxes, not to damage the bond ratings of those cities.”
House Speaker Steve Tilley told The American he had not yet read Jones’ bill but expected he would “treat it like any other piece of legislation and assign it to a committee.”
Proposition A was funded almost solely by financier and tax code theorist Rex Sinquefield. Jones said she discussed the legislation with Pelopidas, the firm that handles much of Sinquefield’s political operation.
“Of course, they said they are not going to support it,” Jones said.
Comptroller Darlene Green, an early and consistent critic of Proposition A, hailed the effort.
“St. Louis is faced with some tough revenue and budget challenges right now, so it’s good to see our local delegation stepping up to the plate and providing some much needed support,” Green said.
“We need to attack the devastating affects of Prop. A from all angles and with all resources.”
Clay: ‘advancing our Democratic agenda’
As for Clay, his elevation to the House Democratic leadership team comes as he completes a four-year stint as chairman of the House Subcommittee on Information Policy, Census and National Archives, which oversaw the massive 2010 Census project.
He will serve as one of 12 regional House Democratic Whips who have responsibility to coordinate votes among delegations in their assigned states. Clay also will be responsible for leading Region IV, which includes Missouri, Illinois, Indiana, Oklahoma and Kansas.
Clay promised absolute support for the progressive agenda initiated by President Barack Obama.
Clay said, “I am absolutely committed to advancing our Democratic agenda to put America back to work, reduce the budget deficit, ensure the stability of Social Security and Medicare, and safeguard our hardfought victories on healthcare reform, Wall Street reform and consumer protection.”
