January 25 , 2008

The legislature reconvened on Tuesday after honoring Dr. Martin Luther King Jr. on Monday and received a jaw dropping announcement by Governor Matt Blunt — he will not seek re–election. This, of course, sent Republicans reeling and has many trying to decide if they will run for Governor. Lt. Governor Peter Kinder has already indicated he plans to run but many are still considering: Congressman Kenny Hulshof, Congressman Jo Ann Emerson, former Senator Jim Talent, Treasurer Sarah Steelman, Senator Charlie Shields, US Attorney and former House Speaker Catherine Hanaway, and current House Speaker Rod Jetton are also contemplating the Governor's race.

News this week includes:

Core Budget

The House Appropriations Health, Mental Health Social Services met this week to review the Department of Health's budget.

The Governor has recommended $2.56 million for funding the core budget for local public health agencies. In discussions with the Chair, Representative Sater, he assured me that the $2.56 million would stay in his recommendation to the entire House Budget Committee.

State Capitol Hearings of Interest Next Week

Appropriations
House Appropriations Committee for Health, Mental & Social Services
The committee is scheduled to hear the Department of Social Services Budget Overview every day of session next week including Monday 1/28 at 10 a.m. in House Hearing Room (HR) 6; Tuesday 1/29 and Wednesday 1/30 at 2 p.m. in HR 5, and Thursday 1/31 at 8 a.m. in HR 5.

Health Care
Special Committee on Healthcare Transformation
Rep. Schaff's Special Committee on Healthcare continues its series of hearings next week on the Insure Missouri proposal. The committee will meet Monday 1/28 at Noon in HR 4, and Thursday 1/31 at 8 a.m. in HR 2.

National Animal Identification System

Attached is a substitute for SB 931 for review. Senator Purgason's bill was heard on Tuesday. Also attached is the Farm Bureau's position.

Tobacco Cessation

Representative Sater’s Appropriation Committee also reviewed funding requested by the Governor for tobacco cessation services for those enrolled in Missouri HealthNet.

The Governor has recommended $8.6 million for tobacco programs with Missouri HealthNet. In addition, the Governor recommended $2 million for the tobacco settlement program for tobacco prevention programs.

Budget

There is concern the state is setting the stage for a budget crisis in FY 2010, just 18 months away. The Governor's budget has a net increase of nearly $600 million over the FY 2008 budget. What is cause for concern is that the FY2009 budget contains a beginning balance of $500 million, as well as $161 million in "lapsed" funds (money appropriated, but not spent) in FY2008. Much of the $500 million is available because of the funding cuts for Medicaid in 2005. Economic indicators suggest that there will not be sufficient revenue growth in Missouri to balance the FY2010 budget. That means there will need to be significant tax increases or significant budget cuts.

Insure MO

Representative Schaaf's Special Committee on Health Care Transformation continued its marathon of daily hearings this week. It appears that Representative Schaaf does not have a master plan outlining topics for the hearings at this point in time. The Committee grilled staff of the Department of Social Services and the Department of Insurance this past week. Schaaf is requesting a mind–boggling amount of detailed information about both public and private insurance.

The Governor has authority to implement phase 1 of Insure Missouri, and plans to do phases 2 and 3 through a waiver. SB577 instructed the Department to seek necessary waivers, without giving any parameters about what the waivers might do. The Governor does need funds to be appropriated for Insure Missouri. It is possible that even though the Governor does not need a bill to enact Insure Missouri in statute, Rep. Schaaf's Committee may develop a bill. Representative Schaaf has been public about his criticism of Insure Missouri, and the Governor's end–run around the legislature. It appears that Insure Missouri has a rocky road ahead especially given Blunt's announcement this week.

Next Week

The "dust" will not settle for quite some time. Legislators are already pulling the Governor's priorities from the budget as the Appropriations process begins.

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