State Rep. Rory Ellinger Talks Payday Loans, Tax Increase and China Hub at Town Hall Event

About 80 people packed the auditorium at the Wednesday night for a town hall meeting hosted by State Representative Rory Ellinger.

The purpose of the town hall was to discuss the recent legislative session, as well as issues impacting the city.

Ellinger spoke about his continued efforts in the legislature to fight payday-loan businesses.

"Payday loans are really hurting University City," Ellinger said. "I can tell you how because I'm a bankruptcy lawyer, and about one third of all my bankruptcies, I can tell you that there is a payday loan involved."

University City has four payday-loan establishments in operation. Because the businesses are licensed through the State of Missouri, they are recognized businesses and cannot be completely prohibited.

However, Ellinger said payday loan businesses set up shop in poor communities where people are underbanked.

Ellinger doesn't see the legislature passing real reform on payday loan business. He foresees something like a Prop B, where the voters pass a resolution on the matter.

Ellinger also said he favors a tax increase.

"I think if somebody makes over $250,000, and if you want to draw a line down Delmar Blvd., north and south or Olive Blvd. or whatever, the majority of families, certainly south of Delmar, probably could afford to pay a little bit more for the good of this community."

"If you just cut, cut, cut you end up with a very sorry situation," Ellinger said.

"It's a very unfair (tax) system," Ellinger said. "If I make $2 million I pay at the same rate as somebody who makes $8,000 a year in Missouri."

Ellinger said this legislative session he plans to co-sponsor a bill to outlaw motorist from talking on a cellphone while driving in Missouri.

An audience member suggested prohibiting people under a certain age from talking on a cellphone and driving, but Ellinger said he wants to ban the practice period.

"It shouldn't be on the basis of age," said Ellinger. "OK, now you're 21 you can get your cellphone," he quipped. 

Ellinger also said he is "really torn" on a proposed Missouri economic development package that would includes incentives for Lambert-St. Louis International Airport to become a hub for China cargo traffic.

"There are a lot of good promises there, and I generally am in favor of that," he said. He likes that the deal would bring jobs and new construction to the region.

"We desperately need jobs in Missouri. We're not called the meth capital of America for nothing. We have huge areas in the state which nobody is really working for a living at any kind of living wage."

However, Ellinger wonders who'll foot the bill for the China hub.

"It's $350 million to build the hardware, to build the factories, to build the storage space that is needed."