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End of Session Report (1/3): Missouri General Assembly budget

By Rep. Todd Richardson, District 154

The Missouri General Assembly wrapped up the 2012 legislative session last Friday bringing an end to a challenging, yet productive year in the legislature. This will be the first of a three-part end of session report. In this report, I will focus on the state budget. The second report will focus on other notable legislation to pass the General Assembly and the third installment will focus on legislation I sponsored and passed this year. If you have questions about any specific piece of legislation, please do not hesitate to contact my office.

Todd Richardson

The Missouri Legislature has only one constitutional duty that must be fulfilled each year – to pass a budget for our state. Missouri’s budget is made up of 13 separate bills which set specific spending limits for every area of state government. I am proud to report that the Legislature passed a balanced budget without raising taxes. 

States across this country are faced with budget shortfalls on an unprecedented scale. Missouri is no different. We started the year with a shortfall of more than $500 million. Necessary decisions made to balance a budget are not always easy, or popular. However these difficult decisions preserve the fiscal stability of our state and avoid the insanity we see with spending in Washington, D.C.

The legislature was able to balance the budget by making cuts to personnel, making Medicaid more efficient by switching coverage for some prescription drugs to generic alternatives, and removing waste that is created by giving certain state departments excess spending authority. In doing so we were able to protect the state’s core functions and fully fund our shared priorities.

Budget highlights: 

  • Restored $106 million in governor recommended cuts to higher education. The proposed cut would have been a significant blow in our area to the continued growth of Three Rivers College and access to higher education across the state. This restoration saves middle-class Missourians from continued increases in tuition.
  • Added over $5 million to the school foundation formula. In light of recent historical declines in state revenues, the General Assembly was able to again make education the No. 1 priority.
  • An increase of $3.6 million for the A+ program.
  • $144.7 million for early childhood education. The Supreme Court has mandated that the state should cover all costs to districts for early childhood education and we continue to meet this mandate.
  • Cut $50 million in proposed spending to implement federal health care law in Missouri.
  • Fully funded Missouri veterans’ homes.
  • Continued funding for Missouri’s commitment to the production of alternative fuels. This aims to continue to move Missouri toward an economy less dependent on foreign oil.
  • A budget of over $8.5 billion for the MO Healthnet program. This money will continue to fund access to health care for the neediest Missourians.
  • Funding of $28 million for a new and more cost effective blind medical program. This program will implement a means test and premium requirement for those making up to 300 percent of the federal poverty limit. This concept is based on Missouri’s S-CHIP programs for children, which is currently the second most generous CHIP program in the U.S.
  • $611 million for in-home services. This funding ensures that seniors will be able to stay in their own homes with care.
  • Continued full funding for the community college jobs retention training ($10M), community college new jobs training ($16M) and jobs development ($14.5M) programs. Combined, these programs will continue to aid in statewide workforce development.
  • $15 million for SEMA disaster funding to reimburse FEMA for disasters that occurred in 2011.
  • $15.4 million for the continued construction of the statewide interoperable system that will allow public safety officials to speak to each other across jurisdictions in real time.

Further state restructuring and programmatic changes will be needed to move Missouri through this current financial crisis. Continuing work by the House Appropriations Committees and by the Interim Committee on Budget Transparency will enable this process to remain fluid and will allow members the needed knowledge of state services to continue to make sound fiscal decisions.

It has been an honor serving you in Jefferson City over the past two years. If you have questions about this year’s budget or any matter affecting state government please contact my office.

If we can ever be of any assistance to you at your state’s Capitol, do not hesitate to contact us at: 573-751-4039 or you can reach Cindy [Martin, legislative assistant]: Cindy.Martin@house.mo.gov

Until our next update, I am, and remain, in your service.