Whether Gov. Eric Greitens' special legislative session this week is warranted boils down to one question: Is it economically feasible to spend a half million dollars or more in an attempt to lure a steel mill to southeast Missouri?
Greitens wasted no time in calling his first special session after the Legislature adjourned May 12.
We believe special sessions should be just that: special. With the regular session's recent end, lawmakers have returned to their districts, their families, their full-time jobs. Greitens says that lawmakers left without finishing their legislative jobs.
Greitens' goal of job creation is worthy, but giving incentives to companies is a slippery slope. How much is too much?
In this case, the goal is to replace the former Noranda Aluminum smelting plant near New Madrid (which employed 900) with a steel mill that would bring around 500 jobs.
The unnamed company would be given a discount on energy rates from Ameren Missouri. Ameren's customers would pay increased rates to subsidize the lower rates for the steel mill.
Is it worth it? It's hard to do a cost-to-benefits ratio on such a project because there are so many unknowns. Lawmakers have to use the best information they have at the time. But we do know that Missouri, in hindsight, has wasted taxpayer money on past projects in the name of economic development.
The governor himself has called the public funding of sports stadiums "welfare for millionaires."
So why can't Ameren and the steel mill negotiate a lower rate themselves and not leave electric ratepayers on the hook for subsidizing the mill's electricity? The mill would be a huge customer for Ameren, which could presumably still profit after giving a discount - not unlike Sam's Club gives customers for buying mayonnaise by the gallon.
We estimate a special session will cost taxpayers somewhere in the neighborhood of $100,000 a week, likely the shortest time possible to pass legislation.
Still, the job-creation issue is worth consideration, and it's unfortunate that the Legislature didn't give it the attention it deserves during the regular session.
Lawmakers have no choice but to hold the special session, so we hope they give the issue due diligence.
We also hope they reject any wording in the legislation that would loosen Ameren's regulations by the Missouri Public Service Commission (PSC).
Wording in the steel mill energy subsidy bill that was considered toward the end of session contained language providing to provide "sweeping deterioration of PSC scrutiny," according to state Sen. Doug Libla, R-Poplar Bluff.
And state Rep. Jay Barnes, R-Jefferson City, last week told the Cole County Republican Club: "It says that the PSC may utilize rate-adjustment mechanisms not otherwise authorized by statute, which means the PSC, as it's drafted right now, can do darn near anything they want, to give Ameren the authority to raise rates."
Some have accused Greitens of seeking the benefit for Ameren, which contributed money to his gubernatorial campaign.
Regardless of the intent, this part of the legislation isn't good for Missourians and needs to be rejected.