"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.” –Thomas Jefferson
Budget Battles During Difficult Times-An Opportunity to Determine the True Roles of Government
A few weeks ago Governor Jay Nixon delivered the annual State of the State address to the Missouri General Assembly, the Missouri Supreme Court, Missouri Cabinet heads, and to the people of our great state. Since then, the issue of how to balance our State budget during these difficult fiscal times has loomed large over the Session.
In January, the Governor, House, and Senate budget leaders agreed upon the revised consensus revenue estimate for the remainder of this fiscal year which ends on June 30, 2010 predicting that revenues will be 6.4% less than expected at $6.97 billion in general revenue. The fiscal year 2010 budget was passed based upon an overly optimistic revenue estimate of $7.76 billion.
They also agreed upon the consensus revenue estimate (CRE) for the next budget year which begins on July 1, 2010 suggesting a growth in state general revenue collections of 3.5% resulting in $7.223 billion of general revenue. This appeared to be overly ambitious.
And so it was revealed at the end of January that revenues are 22.36% less than they were in January of last year with year to date revenue collections now falling to a negative 12.55% down from 10.5% last month year to date. As a result, Governor Nixon announced another round of withholds from the current budget of $74 million.
Unlike Congress, Missouri MUST have a balanced budget. The state of Missouri cannot print money to satisfy unrestrained and politically motivated spending habits - even in an election year. However, Governor Nixon's budget proposal would spend $8.317 billion of general revenue, a number that exceeds the agreed upon CRE by $1.09 billion, or 15% - this is not a balanced budget proposal. The Governor would pay for these excessive increases with federal "stimulus" money, which I submit is nothing more than federal "dependence" money, which Missouri is expected to receive which is about $900 million dollars plus a “phantom” $300 million that “might” come from the federal government even though the legislation has not yet been passed by Congress.
After years of fiscal discipline, a budget is now being proposed that relies on significant one-time monies that may or may not materialize. Our budget difficulties earlier this decade stemmed from uncontrolled spending that relied on one-time monies. This cannot be done, but politicians are often afraid of making the difficult decisions that require discipline, because they fear unpopularity, especially in an election year like this one.
The disciplined decisions of the past few years have put Missouri in a better financial position to weather this economic downturn than most states. Missouri remains one of only seven states that still have a triple-A bond rating from the three major bond rating agencies.
The proposed budget suggests that $900 million of one-time monies be used to pay for ongoing operating costs of government and its programs. This money will not be available next year. It may be considered good politics by some, but it is lousy fiscal policy. We cannot allow the federal "stimulus" to lead us down the path to ever more federal dependency and greater threats to the pocketbooks of Missourians.
Data released this week claim that unemployment may drop to 9.8% this year, down from the current 10% unemployment rate. The data also suggests that with 5% growth in GDP throughout the year, unemployment would only drop to 9%.
How out of touch with our existing economic situation can we be to accept a budget that requires a 15% increase in general revenue knowing that we are currently experiencing 9.6% unemployment in Missouri? This is setting us up for even larger budget problems next year and years after.
NOW is a time for restraint, a time to prioritize, and a time to drive efficiencies into state bureaucracy. It is a time to shed the hindrances that hold back innovation and invention, a time to empower Missourians to build dreams, not sustain them where they are. Every Missouri family and business has had to make difficult financial decisions, why should the taxpayer funded Government be any different? It absolutely should not. People are outraged with the unparalleled and unabated spending spree in Washington, DC that denies the realities of our current economy. Missouri cannot, and must not, follow in those footsteps.
NOW is a time when doing what is right is far more important than doing what is popular and refusing to acknowledge what is the actual state of our state. Lest we forget, hope is not a plan.
HEALTH CARE FREEDOM ACT UPDATE
As many of you know, I am the chief sponsor of HJR 57, the “Health Care Freedom Act”. As I have discussed, if it is passed and approved by the voters, it will secure the current rights and freedoms that Missouri citizens have to choose to participate in whatever health care system or care that they want. Seventy five of my colleagues have co-sponsored this legislation and I am very grateful to them for their support. You may view the legislation at this link: http://house.mo.gov/content.aspx?info=/bills101/bills/HJR57.htm
I AM PLEASED TO REPORT THAT HJR 57 WAS VOTED “DO PASS” BY THE HOUSE RULES COMMITTEE LAST WEEK. THIS IS THE FINAL HURDLE THE BILL HAD TO CLEAR ON THE COMMITTEE LEVEL AND NOW WE ARE WAITING FOR THE SPEAKER’S OFFICE TO PLACE THE BILL ON THE HOUSE CALENDER FOR DEBATE ON THE HOUSE FLOOR.
Thank you all very much for your continued support of this very important resolution and I will continue to keep you posted on its progress.
SIX FLAGS ST. LOUIS IN EUREKA IS HIRING!!
I am very excited to report that Six Flags St. Louis, which is located in the heart of the 89th District, is hiring more than 3,000 employees to fill positions for the 2010 season which begins on April 2nd. Six Flags will be hosting job fairs to fill these positions on February 20, 27; March 6, 13, 20 and April 3, 10 and 17. For more information, please visit: http://www.sixflags.com/stLouis/index.aspx
FAST FACTS: Famous Missourians
Poet T.S. Eliot of St. Louis wrote: “Love is nearly itself when here and now cease to matter”. Walt Disney, of Marceline, created cartoon couple Mickey and Minnie Mouse in May 1928. Actress Betty Grable, a St. Louis native, starred in many movies including Springtime in the Rockies and Moon over Miami.
CALLING 211
211 Service is available throughout the State of Missouri. 211 is a great free resource available to all Missourians who need to search for non-emergency help in the areas of counseling, education, temporary resources, employment and volunteering. For more information about this excellent free resource, visit: www.211missouri.org.
Tim’s Legislative Platform for 2010
So far this year I have sponsored and filed thirteen individual pieces of legislation. I have co-sponsored numerous other bills. To review all of the bills that I have sponsored or co-sponsored, please follow this link: http://www.house.mo.gov/content.aspx?info=/bills101/spon/spn089.htm
This week I am extremely pleased to announce that my HB 1750 passed out of the House by an overwhelming vote of 111 – 42. This bill is commonly referred to as the “access reform” bill. If we can successfully move this bill through the Senate, this bill will result in lower telephone access charges and fees for millions of Missourians and will assist the telecommunications industry in providing greater innovations, new exciting products, lower rates and better and more advanced infrastructure across our entire State. I want to thank all of my colleagues who worked in a bipartisan way to move this bill to passage in the House this week.
Personal News & Notes
Last week was Valentine’s Day weekend. And although the Jones household had to deal with a sudden attack by the common cold and flu on nearly all of us (including Baby Abby who has had a runny nose since November), I treasured the time that I had to spend at home (coughing and all!) with my ever understanding and hard working wife Suzanne and our two beautiful daughters Katie and Abby. Love is truly patient (although trying at times!) and is truly kind and the love of a family cannot be appropriately described but must be experienced to be fully understood. I hope that you and your family had a great Valentine’s Day weekend!
Feel Free to Contact Us!
If my extremely dedicated (and very busy!) Legislator Assistant, Jody Williams, or I can be of any assistance throughout the year, please do not hesitate to contact us at 573.751.0562 or by email at jody{dot}williams{at}house{dot}mo{dot}gov or at tim{dot}jones{at}house{dot}mo{dot}gov. And if your travels find you anywhere near the Capitol, please do stop by and visit us in Room 114. Until our next report, I remain, in your service.
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