Before I begin this week's report, I would first like to thank everyone for their thoughts and prayers in regards to my health. Unfortunate circumstances such as this serve as a reminder that God is truly the one in control, not us. Our time on Earth is a gift and this world we know is nothing but a temporary home. No matter what obstacles we may be up against in life, it is important to have trust in the Lord's plan. Regarding my personal situation, it may be a considerable amount of time until my name reaches the top of the list and a liver becomes available for transplant. Again, thank you to all of the good folks for your support during this time.
House and Senate Finalize State Budget with Record Funding Levels for Education
With one day to spare, the Missouri General Assembly gave final approval to a state spending plan that fully funds the Foundation Formula for K-12 education for the first time. The legislature had until Friday, May 5 to get the operating budget across the legislative finish line, and final negotiations between the House and Senate took several days before finally resolving on Thursday. The budget that now heads to the governor's desk invests approximately $27.7 billion in the state's priorities while also dealing with the reality of sluggish revenue growth.
Lawmakers started the budget process with the challenge of finding a way to bridge a $500 million funding shortfall. The final version of the plan bridges that gap while also providing record levels of funding for K-12 education; funding necessary to protect Missouri's most vulnerable citizens; and an additional $198 million on the bottom line for emergency and supplemental expenses, including additional expenses related to Medicaid growth.
The decision to fully fund the School Foundation Formula was put forth as the top priority for the House Budget Chairman at the beginning of the budget process. The version of the budget passed out of the House included a funding boost of $48 million to achieve full funding. The Senate then planned to scale back the increase, but during debate on the Senate floor a majority of Senators voted to agree with the House and move forward with full funding for the first time since the formula was approved by lawmakers in 2005.
The formula was created to ensure each school district in the state has adequate funding to meet educational standards. It was meant to be implemented over a series of years and fully funded by 2013, but the economic downturn in the late 2000s and early 2010s caused revenue shortfalls that prohibited the legislature from achieving full funding. Now, with the fiscally responsible decisions of the House Budget Committee, the legislature has been able to meet its obligation to Missouri's public schools despite lagging revenue growth.
Also included in this year's budget is a partial restoration of a cut proposed by the governor to in-home care and nursing home services for some of Missouri's most vulnerable citizens. The governor had recommended increasing the eligibility requirements for these services, which would have resulted in approximately 20,000 seniors and disabled Missourians no longer qualifying for the state-funded care. The House then moved to fully restore them to their original levels to avoid cutting anyone off from care. The final version of the budget represents a compromise that increases requirements slightly, but also includes a provision that would restore all of the governor's proposed cut if the Senate passes the Senior Services Protection Fund legislation that was approved by the House earlier in session.
The Senior Services Protection Fund as approved by the House would end the renter's portion of the senior citizens property tax credit in order to generate funds that would be used to protect the existing level of service to Missouri seniors and disabled citizens. Late Thursday night, the Senate took up and passed the bill but in a modified form that would generate these dollars by "sweeping" the unexpended monies from several state funds associated with regulatory boards and commissions. Supporters say the fund sweep would generate $35.4 million in one-time funds to avoid the cuts to in-home and nursing home care. The funds would also restore funding for brain injury services provided by the Department of Health that have been withheld in previous budget cycles; restore a portion of a cut proposed by the governor to reimbursement rates for Medicaid providers; and provide additional funding for the state's Area Agencies on Aging for use in the Meals on Wheels program that provides meal assistance to seniors.
The legislation will now head back to the House where it can either be approved with the Senate changes, or sent to conference where negotiators from both chambers can work toward a compromise. While the budget is finalized, the fate of the Senior Services Protection Fund bill will ultimately determine if state assistance to seniors and disabled Missourians remains at current levels. The legislature will have until Friday, May 12 to give the measure final approval.
The appropriations bills now move into the hands of the governor, who can sign the bills into law, or exercise his line item veto authority to object to specific spending lines in the budget. The governor also has the power to withhold certain spending items if it is necessary to keep the budget in balance. Now lawmakers will continue to monitor the state's revenue growth with the hope that it meets projects so that all aspects of the budget can be funded fully.
As always, it is an honor to serve the good folks of the 153rd District. If you would like to discuss any issue, please call 573-751-1066 or you can e-mail me at steve.cookson@house.mo.gov .