January 22, 2010

The Governor’s long awaited State of the State address was given Wednesday evening.

Nixon has cut the budget by an additional $253 million dollars. In addition, he is attempting to balance the budget on $300 million in additional federal funding that has not yet been approved by Congress.

This would bring the amount of federal funds used to stabilize the budget to $1.2 billion along with a previous withhold of $400 million.

Public Schools will see an increase of $18 million to the foundation formula which is $87 million short of fully funding the formula.

Balancing the budget on possible future federal funds was not well received by Republican Leadership.

Nixon did emphasize a new jobs proposal focusing on the Missouri Science and Innovation Research Act. A fund would be created by collecting a percentage of income growth from the life sciences industry and using the fund for economic incentives for high-tech businesses. This proposal is modeled after a similar Kansas program.

However, Senator Crowell as he did last year has threatened a filibuster on the program.

The Medicaid program will be reduced again by $121 million mainly by reducing in home patient care and pharmaceutical use of primarily psychotropic drugs.

Tax collections are expected to be down by 6.5% this year. However, Nixon anticipates a rebound boosting tax revenue by 3.5%.

Nixon also pushed a scaled back version of the A+ programs by suggesting every high school in the state should have A+.

Higher education is expected to absorb another $50 million cut.

News this week includes:

Continuing to "just say no" to health care reform
Yet another constitutional amendment was proposed to prohibit Missourians from participating in federal health care reform, HJR74 (Gatshenberger). HJR57 (Jones-89) was referred to the H Committee on General Laws.  We can assume it will get support from this Committee.  On January 12, the Committee heard and voted out a House Concurrent Resolution that urges Missouri's congressional delegation to vote "no" on federal health care reform (in spite of not knowing what a final proposal will be). 

SB587 (Nodler), which creates a Tenth Amendment commission, has been assigned to the S Committee on General Laws.

(CORE) Aid to Local Public Health
The Governor did not recommend an additional cut on top of the $307,000 withhold in August.

Your contacts have made a big difference in not having additional cuts. However, this is a “target” and the Republicans plan additional cuts!

This leaves our appropriations at approximately $8.7 million.

State Officials Testify On MO HealthNet Issues
Ron Levy, director of the Missouri Department of Social Services, and officials with the MO HealthNet Division presented an overview of the MO HealthNet program to a legislative committee that reviews the MO HealthNet budget. The testimony and committee discussion focused on the following.

• the value and potential expansion of managed care within the program
• disparities in spending between the various types of MO HealthNet enrollees
• changes to the “better of days” component of the formula for calculating hospital add-on payments

The department will soon release a consultant’s study detailing the effects of MO HealthNet managed care on cost, quality and access.

State Representatives Voice Opposition To Federal Health Reform
The Missouri House of Representatives passed a nonbinding resolution asking Missouri’s federal legislators to oppose the pending congressional health reform legislation. House Concurrent Resolution 18 was approved with several amendments by a 111-46 vote.

Change In Senate Causes Democrats To Reconsider Strategies On Health Care Reform
Republican Scott Brown’s win in Massachusetts’ special election for the U.S. Senate seat previously occupied by Democrat Sen. Edward Kennedy ends the Democrats’ 60-vote, filibuster-proof majority in the Senate. Democrat lawmakers and the White House are now re-evaluating their strategies to pass health care reform. Democrats could bypass another Senate vote or invoke budget reconciliation to pass reform. House Majority Leader Steny Hoyer, D-Md., floated the idea of having the House vote on the Senate version of the bill, calling it “clearly better than nothing.” Republicans on the House Education and Labor Committee offered to cooperate in drafting a new health care measure in an open and bipartisan conference committee.

Constitutional amendments to opt out of health care reform have hearings
SJR25 (Cunningham) will be heard on Thursday 1/28 at 8 AM in SCR 1 by the Senate Government Accountability and Fiscal Oversight Committee.  This constitutional amendment is similar to bills filed in at least 16 other states, and its purpose is to short circuit the State's participation in federal health care reform (if it is enacted!).    

Fair Tax
Next Thursday at 8am in the senate Committee room 1 the Senate’s version of the “Fair Tax” SJR 29 (Senator Purgason) will be heard.

The legislation if passed would be put before voters to eliminate state income tax as well as many local taxes.

Earnings Tax
Billionaire Rex Singquefield is promoting an elimination of the St. Louis earnings tax. He is pushing this referendum with his own funds. Undoubtedly, if the “fair tax” proposals don’t pass, Singqufield’s group may start a statewide petition drive.

Next Week
The legislature begins its fourth week. Now the actual work will begin with numerous committee hearings.

[top of page]