The Missouri Budget Project Articles

Consequences of Proposals to Drastically Change Missouri's Tax Structure

Sat, 06 Mar 2010 21:38:56 GMT

Several constitutional amendments that propose to eliminate personal and corporate income taxes and replace them with a greatly expanded sales tax have been introduced this year in the Missouri Legislature. Click here to read a policy brief on these proposals. Click here to read a fact sheet on how this would impact Missouri families and here to learn how it will impact seniors. Click here to read a report from Partnership for Children on how these proposals would affect families with children. Click here to learn more about how MBP and ITEP calculated the sales tax rate needed to keep these proposals revenue neutral and here to learn more about some of the myths and facts on these proposals. Click here to view a presentation recently given by the Missouri Budget Project on why these proposals are dangerous for Missouri.

March 5, 2010

Sat, 06 Mar 2010 21:36:36 GMT

files/E news 3 5 10.pdf

Missouri Budget Project Statement on Substitute for SJR 29

Thu, 04 Mar 2010 21:36:40 GMT

Click here to read a statement from the Missouri Budget Project on the recently filed substitute to Senate Joint Resolution 29, which dramatically changes Missouri's tax structure.

Decrease in Revenue Collections Speaks to Need for Balanced Approach, Not Further Budget Cuts

Wed, 03 Mar 2010 17:06:15 GMT

Governor Nixon, who has already made nearly $700 million in cuts, vetoes or withholds to the state’s budget for the current fiscal year - and included significant funding cuts in his proposed FY 2011 budget - announced that further budget cuts would be needed this fiscal year to offset the decline in state revenue. Click here to read a press release on the need for a balanced approach to face the budget shortfall.

May 1, 2009

Tue, 02 Mar 2010 21:49:46 GMT

Federal and State Policy Update Missouri Budget Project

May 1, 2009

In this issue:

State
1. Budget process grinds forward
2. Status of Tax Bills that would greatly affect General Revenue and services
3. Status of health care for the low income uninsured remains unknown

1. Budget process grinds forward

HBs 1-13
The Budget Conference Committee began discussions on Wednesday, April 29 to reconcile the differences in the budget bills passed by the House and Senate. These are HBs 1-13.

The Budget Conference Committee canceled its Friday meeting and will reconvene on Monday, May 4 at 1 PM in the Third Floor Legislative Library.

At this point in time it appears that funding for subsidized child care in HB11 and HB21 (if passed by the Senate) will allow services to be continued at the current level.

Presumptive eligibility is funded at the House proposal, which is a $300,000 cut from the Governor’s $3.3 mil request.

There is currently no expansion of SCHIP coverage.

Health insurance for low income families has not been decided (see 3. Below)

HBs 21 and 22
Budget Chair Allen Icet also introduced HBs 21 and 22, which appropriate money from the Federal Stimulus Fund and the Federal Budget Stabilization Fund. The House passed HB21 and sent it to the Senate. A summary of the main provisions of HB21 that relate to human services is attached.

HB22 was perfected by the House on April 29, but was defeated in its final vote on April 30. A number of legislators changed their vote after considering the negative effect that HB22 may have on next year’s budget and funding for critical services. HB22 appropriated $403 mil for the coming fiscal year (FY2010), and $151 mil for FY2011.

The entire budget process is chaotic, and it appears likely that a special session will be needed to come to an agreement about the budget for FY2010.

2. Status of Tax Bills that would greatly affect General Revenue and services

HJR36 (Emery), was heard by the S Ways and Means Committee on April 29. There was broad opposition to the bill and the hearing will continue next week. As previously reported, the Missouri Budget Project opposes this bill. By replacing personal and corporate taxes with an increased sales tax, Missouri’s tax system would become more regressive, produce less stable and more inadequate income. It appears that HJR36 will not pass this year.

HCS/SCS/SB71 passed the House on April 30. Budget Chair Allen Icet amended his proposal to cut income taxes by $1 billion over two years to HCS/SCS/SB71 (Stouffer). The original intent of the bill was to provide tax credits for donations to programs that serve individuals with a developmental disability. According to the fiscal note, the cost of the tax credits are “unknown”.

Icet’s provision lowers the tax rate from 6 to 5.5 percent. The estimated cost is $463 mil (per the current fiscal note) in General Revenue in FY2010. A floor amendment passed that makes the tax cuts permanent, rather than for just 2 years.

The Missouri Budget Project strongly opposes SB71. In addition to reducing revenue at a time when funding is needed to support vulnerable Missourians and critical services, the benefits of the tax cut go primarily to wealthy Missourians. According to an analysis by the Institute for Taxation and Economic Policy (April 2009), the 40 percent of Missourians with incomes under $30,000 will receive only 5 percent of the total tax cut benefit. Missourians in the top 20 percent of income will receive 67 percent of the total benefit, and 22 percent of the benefit will go to those with the top 1 percent of income.

3. Status of health care for the low income uninsured remains unknown

The Governor’s proposal to insure low income parents with incomes up to 50% of FPL is in limbo. Money to fund this is currently in HB11, but the language of the proposal has been removed. It is not clear what this will mean.

SB306 (Dempsey) is still in the House Special Standing Committee on Health Insurance. It proposes providing insurance for low income Missourians, but uses a complicated system of Health Savings Accounts, and has some other provisions that are troubling. (See updated analysis on our web site www.mobudget.org.) We are in the process of analyzing the House Committee Substitute, and it is likely that there will be additional amendments before the bill moves from Committee.

For more information regarding the issues in this update, please contact one of the MBP staff.

Amy Blouin, Executive Director
314.652.1400 (office) 314.518.8867 (cell), ablouin@mobudget.org

Ruth R. Ehresman, Director of Health & Budgetary Policy
314.652.1400 (office) 314 504.3616 (cell), rehresman@mobudget.org

Tom Kruckemeyer, Chief Economist
573.636.2581, tkruckemeyer@mobudget.org

Heather Lasher Todd, Communications Director
314.652.1400 (office), hlashertodd@mobudget.org

July 15, 2009

Tue, 02 Mar 2010 21:49:34 GMT

For Your Information: Town Hall discussion on federal health reform

July 15, 2009

Congressman Russ Carnahan is holding a Town Hall discussion on federal health care reform on Monday, July 20. This is an excellent opportunity to both learn more about federal health care reform efforts and to share your ideas and concerns with Congressman Carnahan. Please see his message below.

Ruth Ehresman, Director of Health and Budget Policy 314.504.3616 rehresman@mobudget.org.

A message from Congressman Russ Carnahan

Dear Friend:

Reforming our nation's health care system to lower costs, improve quality, increase coverage, and preserve patients choice of plan and doctors is a top priority of Congress and President Obama.

Yesterday, House leadership introduced America 's Affordable Health Choices Act of 2009 which addresses the looming concerns with our current health care system. The House has set an aggressive health care agenda with hearings beginning this week.

Please join me for a town hall discussion on July 20, 2009 from 8:00 a.m. - 10:00 a.m. at Forest Park Community College in the Cafeteria, South Bay, Student Center Building . For a campus map, click here.

I hope to see you on July 20th. To RSVP for this event, please call 314-962-1523 or email chase.sackett@mail.house.gov.

July 7, 2009

Tue, 02 Mar 2010 21:49:19 GMT

Missouri Budget Project State and Federal Policy Update

July 7, 2009

In This Issue:

I. Update on federal health care reform
II. How Missouri compares to other States on taxes and spending
III. How Governor Nixon balanced the FY2010 budget: Vetoes and Withholds
IV. Federal and State opportunities to enroll eligible children in Medicaid and the Children’s Health Insurance Program
V. Joint Interim Committee on Oversight of Federal Stimulus and Stabilization Funds holds organizational meeting
VI. Help us keep up the fight!

I. Update on federal health care reform

The members of Congress will return from their recess on July 7. In both the House and the Senate, bills have a three-legged approach to health reform: the development of a health insurance exchange; building on and strengthening Medicaid, and building on private insurance.

Some of the outstanding “big” issues that remain undecided include: ways to contain costs in the health delivery system; whether there will be a public insurance option, whether there will be employer mandates; and ways to adequately finance health care reform.

Tentative time line of expected action

In the Senate
The Senate Health, Education, Labor & Pensions Committee and the Senate Finance Committee are expected to “marry” their bills and bring a single bill to the Senate floor by the end of July. A vote is expected in early August.

In the House
A vote on a House bill is expected before the end of July.

The President wants to sign a bill by October 15.

II. How Missouri compares to other States on taxes and spending

The Taxed Enough Already proponents recently held TEA parties in some areas of Missouri to protest the growth of government and spending. Are Missourians over-taxed? Is Missouri’s spending out of control? Because the facts matter, here is the real scoop.

Missouri ranks 47th lowest in the nation on per capita state government revenue
When local taxes are included, Missouri ’s rank among the states improves only slightly to 45th lowest in the nation for per capita state and local government revenue
Missouri ranks 45th lowest for state and local government spending per capita

To find out much more, see our new update, Comparing Missouri’s Tax and Spending with the Nation: Where Missouri Ranks in 2009, at www.mobudget.org.

III. How Governor Nixon balanced the FY2010 budget: Vetoes and Withholds

On June 24th, the Governor announced line item vetoes of slightly more than $105 million from the budget. By vetoing these line items, the funding is removed from the FY 2010 budget. Governor Nixon also withheld approximately $325 million within other line items. If revenue improves during the coming months, some or all of this funding could be restored to the budget.

We do not have detail about the exact impact of all the withholds. In a June 30 memo to his staff, Ron Levy, the Director of the Department of Social Services, stated that his Department will likely be required to withhold $19 million in general revenue, in addition to the Governor’s vetoes. Director Levy said that plans for withholding those funds are being made now.

Details of the Governor’s actions are available in Balancing the Missouri Fiscal Year 2010 Budget: a Summary of Vetoes and Withholds, on the Missouri Budget Project web site, www.mobudget.org.

IV. Federal and State opportunities to enroll eligible children in Medicaid and the Children’s Health Insurance Program

Federal action
Janet Sebelius, Secretary of the U. S. Department of Health and Human Services, held a news conference on July 6, 2009 to announce the availability of $40 million in grants to help states enroll eligible children in their Medicaid and CHIP programs. The grants range between $25,000 and $1 million, and are available to states, local governments, not-for profit organizations and coalitions. Applications are available at www.grants.gov.

According to the news conference, a teleconference to provide information about the grants will be held on July 22. Letters of intent are due July 27. Applications are due August 6 (electronic submissions) and August 10 (mailed submissions).

This is a first round of grants. Eventually a total of $100 million in grants will be available to enroll eligible children.

State action
Missouri advocates for children have written a sign-on letter to Governor Nixon, asking him to make a variety of administrative changes that will facilitate the enrollment of eligible children in Medicaid and CHIP (Combined, these two programs are currently called MO HealthNet for Children). The administrative changes can be made without changing state law. The sign-on letter is attached. If your organization is willing to sign the letter, please send an email by July 13 to Jeremy LaFaver at the Partnership for Children, lafaver@pfc.org.

V. Joint Interim Committee on Oversight of Federal Stimulus and Stabilization Funds holds organizational meeting

The Joint Committee held an organizational meeting on June 29, 2009. The purpose of the Joint Committee, as outlined in Senate Concurrent Resolution 27, is to conduct in-depth studies regarding the parameters of the American Recovery and Reinvestment Act funds, and analysis of strategies to secure the maximum amount of funds for Missouri and Missourians.

Senator Scott Rupp and Representative Allen Icet were elected co-chairs of the Committee. Its immediate task was to divide responsibility among the House and Senate members to research the 100+ grants that are available. The end product of the research is expected to be a comprehensive list of grant opportunities and time lines for application.

The Committee’s next meeting is tentatively scheduled for sometime the first week of August.

The official web sites of the ARRA include:
www.recovery.gov. and www.grants.gov/applicants/recovery.jsp.

VI. Help us keep up the fight!

If you are able, please help us keep up the fight by making a donation to the Missouri Budget Project. Donations are fully tax deductable and can be made through our secure server online at: http://www.doubleknot.com/Registration/CampaignDetail.asp?ActivityKey=104417&OrgKey=1101 or mailed to MBP, 4130 Lindell Blvd. St. Louis, MO 63108.

Your support is greatly appreciated!

For more information regarding the issues in this update, please contact one of the Missouri Budget Project staff.

Amy Blouin, Executive Director
314.652.1400 (office) 314.518.8867 (cell), ablouin@mobudget.org

Ruth R. Ehresman, Director of Health & Budgetary Policy
314.652.1400 (office) 314 504.3616 (cell), rehresman@mobudget.org

Tom Kruckemeyer, Chief Economist
573.636.2581, tkruckemeyer@mobudget.org

Heather Lasher Todd, Communications Director
314.652.1400 (office), hlashertodd@mobudget.org

June 23, 2009

Tue, 02 Mar 2010 21:49:02 GMT

Missouri Budget Project State and Federal Policy Update

June 23, 2009

In This Issue:

I. Update on federal health care reform: a current snapshot
II. Missouri Budget Project looks at fiscal year 2010
III. Committees appointed to further health care reform and to provide oversight of federal funds
IV. Bonus FMAPs for 4th quarter are released

I. Update on federal health care reform: a current snapshot

Debate about how to achieve health care reform continues to be a high profile issues in Washington, DC. In a first “snapshot” paper on June 2, the Missouri Budget Project outlined some of the key issues being considered. The attached snapshot contains a brief overview of the proposals currently being discussed. Again, there are many unanswered questions. The paper is also available on the Missouri Budget Project web site at www.mobudget.org.

The proposals in both the House and Senate are very fluid. This is only meant as a snapshot in time.

Tentative time line of expected action

In the Senate: The Senate Health, Education, Labor & Pensions Committee began mark-up of the bill last week, and may finish this week.

The Senate Finance Committee expects mark-up to begin after they return from the upcoming break on July 7.

In the House: Mark up of the joint bill is expected in mid-July. Each Committee will discuss its own portions of reform. The full House is expected to take up the bill before the August recess.

II. Missouri Budget Project looks at fiscal year 2010

The Governor is still considering what line item vetoes, if any, he will make before signing the FY2010 budget. We will share information about this as it becomes available.

he Governor is still considering what line item vetoes, if any, he will make before signing the FY2010 budget. We will share information about this as it becomes available.

The latest estimate from Tom Kruckemeyer, the MBP chief economist, indicates that General Revenue for FY2010 may be about $86 million in the red due to further declines in state tax revenue. FY 2010 budget vetoes and withholds close to $200 million are possible. While some capital improvements could be delayed to minimize cuts to the operating budget, line item vetoes or withholds may still be likely due to declining revenues.

III. Committees appointed to further health care reform and for oversight of federal funds

President Pro Tem Charlie Shields recently appointed the Healthy Missourians 2020 Committee. Its members are:

Frank Barnitz, 16th
Tom Dempsey, 23rd
Jolie Justus, 10th
Brad Lager, 12th
Eric Schmitt, 15th
Wes Shoemyer, 18th

This Committee is created by Senate Resolution 303 (2009), and is charged with developing long-term strategies to reign in health care costs and insure more Missourians. The Committee will dissolve December 31, 2010.

Members were appointed by House and Senate leadership to the Joint Interim Committee on Oversight of Federal Stimulus and Stabilization Funds. Its members are:

Rep. Faith, Sally, 15th
Rep. Hobbs, Steve, 21st
Rep. Icet, Allen, 84th
Rep. Kelly, Chris, 24th
Rep. LeBlanc, Roman Lee,43rd
Sen. Lager, Brad, 12th
Sen. Rupp, Scott T., 2nd
Sen. Schmitt, Eric, 15th
Sen. Smith, Jeff, 4th
Sen. Wright-Jones, Robin, 5th

The Joint Committee will hold an organizational meeting on June 29, 2009 at 10 AM at the Wainwright State Office Building in St. Louis.

IV. Bonus FMAP for 4th quarter are released

The American Recovery and Reinvestment Act of 2009 contains provisions that increase Medicaid grants to states for 27 months. This is done by increasing the federal medical assistance percentages (FMAPS), the share of state programs paid by the federal government.

Missouri’s FMAP is increased in 2 ways by the ARRA. First, all states are eligible for a 6.2 percentage point temporary increase. Second, states with high unemployment rates are eligible for an additional bonus increase. Missouri qualifies as a high unemployment state. The bonus increase can change each quarter, based on changes in the unemployment rate.

Prior to the ARRA, Missouri’s FMAP was 63.19 percent. Missouri’s FMAP for the third quarter of federal fiscal year 2009 (which began October 1, 2008 and ends September 30, 2009) was 72.26 per cent. This means that of every one dollar spent on Medicaid, 72.26 cents was federal money. The estimated FMAP for the 4th quarter is 73.27 per cent.

To date, Missouri has received $439 million in increased Medicaid funding from the ARRA provisions. The projected total Missouri could receive is $1.6 billion over the 27 months.

Source: Federal Funds Information for States, Issue Brief 09-22, June 23, 2009

For more information regarding the issues in this update, please contact one of the MBP staff.

Amy Blouin, Executive Director
314.652.1400 (office) 314.518.8867 (cell), ablouin@mobudget.org

Ruth R. Ehresman, Director of Health & Budgetary Policy
314.652.1400 (office) 314 504.3616 (cell), rehresman@mobudget.org

Tom Kruckemeyer, Chief Economist
573.636.2581, tkruckemeyer@mobudget.org

Heather Lasher Todd, Communications Director
314.652.1400 (office), hlashertodd@mobudget.org

2010 Legislative Updates

Mon, 01 Mar 2010 21:56:32 GMT

The Missouri Budget Project's E-News Updates and Legislative Action Alerts provide timely information on what is happening in the Missouri Legislature and the U.S. Congress and how it will impact Missourians. They also periodically include details on upcoming events and information on how you can get involved. Click here to sign up for the MBP's E-News Updates!

Click on the dates below to read previous E-News Updates and Action Alerts:

Legislation Strives to Reign in Abuses in Pay-Day Lending in Missouri

Mon, 01 Mar 2010 21:02:31 GMT

Missourians trapped in vulnerable financial situations are at risk of falling into the cycle of debt brought about by unrestricted payday lending. Click here to learn more about payday lending and why it is important for the Missouri Legislature to enact stricter regulations on this industry.

Enacting the Streamlined Sales Tax Would Benefit Missouri

Mon, 01 Mar 2010 20:58:59 GMT

Enacting the streamlined sales tax will help keep Missouri businesses competitive, provide the state with much-need funds and modernize our revenue structure. Click here to learn more about this proposal.

President Obama announces plan for comprehensive health care reform

Tue, 23 Feb 2010 23:08:16 GMT

On February 22 President Obama released his plan for comprehensive health care reform. Click here to read a summary.

Please join us for a special discussion on the Missouri Budget, Thursday, March 11th in Springfield

Tue, 23 Feb 2010 15:44:03 GMT

Click here to learn more about a special discussion on Missouri's budget situation, and opportunities to move the state forward, March 11th in Springfield.

The Making of the FY2011 Budget: Missouri House Appropriations Committee acts to approve hurtful cuts

Fri, 19 Feb 2010 21:05:09 GMT

On February 16, 2010 the Missouri House Appropriations Committee for Health, Mental Health and Social Services marked up House Bills 2010 and 2011, the appropriation bills for the Departments of Health & Senior Services, Mental Health and Social Services. Two large amendments were passed that made numerous cuts in services and programs. Click here to read more about these proposed cuts.

Take it to the Finish Line: The Urgent Need for Health Care Reform

Wed, 10 Feb 2010 22:28:41 GMT

The U.S. Senate health care reform proposal contains many significant improvements. Click here to read an analysis of this proposal, which will likely be the basis for reform as the process goes forward.

Determining the Statewide Sales Tax Rate Under SJR 29 & HJR 56

Wed, 10 Feb 2010 22:24:03 GMT

Senate Joint Resolution 29 and House Joint Resolution 56 would place a constitutional amendment on the ballot to dramatically change the state’s revenue structure by eliminating individual and corporate income/franchise taxes and replacing them with a greatly expanded sales tax. The new statewide sales tax would both increase the current sales tax rate and expand the base of the state sales tax to include all purchases and services. Click here to read a document detailing why an 11 percent statewide sales tax rate would be required for the proposals to remain revenue neutral.

Congressional Action Needed to Prevent 90,000 Jobless Missouri Workers From Losing Benefits by June

Mon, 08 Feb 2010 19:51:40 GMT

A new analysis by the National Employment Law Project shows that over 20,000 unemployed Missouri workers will become ineligible for federal unemployment insurance benefits in March unless Congress passes an immediate extension of the unemployment programs from the American Recovery and Reinvestment Act. By June, more than 90,000 unemployed Missouri residents are set to run out of their jobless benefits with no further support. Click here to read a news release on this topic.

Presentation on the State of the Missouri Budget with the Nonprofit Services Center February 5

Sat, 06 Feb 2010 19:02:25 GMT

This presentation provides an overview of the state of Missouri's budget and the structural causes of the state's budget struggles.

New State Bonding Proposal Must Have Thorough Review

Thu, 04 Feb 2010 22:20:05 GMT

House Joint Resolution (HJR) 77 currently being debated in the Missouri Legislature would allow Missouri to increase bonds for much needed capital improvement projects by $800 million. However, the issue must be evaluated in the overall context of the Missouri state budget situation. Click here to read more.

Missouri General Revenue Collections Remain in Deep Freeze at Mid Point of Fiscal Year 2010

Mon, 25 Jan 2010 18:05:58 GMT

Missouri general revenue collections, after refunds, declined 21.7 percent in December, which results in a 10.6 percent decline for the first six months of fiscal year 2010 overall. Click here to read the latest general revenue report for fiscal year 2010.

Summary of Governor Nixon's Proposed Budget

Fri, 22 Jan 2010 17:41:25 GMT

Governor Nixon delivered his State of the State address on January 20. He outlined his priorities and released his proposed budget. Click here to view a summary of the Governor's budget request.

Missouri Budget Project Statement in Response to State of the State Address

Thu, 21 Jan 2010 02:41:54 GMT

Click here to read a statement from Missouri Budget Project Executive Director Amy Blouin in response to Governor Nixon's State of the State Address.

Summary of Manager's Amendment changes to the U.S. Senate proposal to reform health care

Tue, 22 Dec 2009 17:42:49 GMT

Click here to read a summary of the Manager's Amendment to the U.S. Senate proprosal to reform health care.

Economic Recovery Act Has Kept Roughly 105,000 Missourians Out Of Poverty And Boosted Economy, New Report Shows

Thu, 17 Dec 2009 16:45:14 GMT

Seven provisions of the American Recovery and Reinvestment Act of 2009 (ARRA), passed in February, are keeping approximately 105,000 Missourians from falling into poverty this year. Click here to read a news release about a new report new report from the Washington, DC-based Center on Budget and Policy Priorities.

State Taxes Hit Poor & Middle Class Missourians Far Harder than Wealthy, New Report Shows

Mon, 23 Nov 2009 21:51:41 GMT

Low- and middle-income families in Missouri pay a far higher share of their income in state and local taxes than the richest families in Missouri, according to a new study by the Institute on Taxation & Economic Policy. Click here to read a news release on the report.