Gatschenberger: Fiscal Year Capitol Report, Child Identification Program Success, New Insurance Program

Record Setting Fiscal Year is Nothing to be Proud of

Missouri's State Fiscal Year ended on June 30 by setting a record.  However, it is a record that we would not strive to ever meet or exceed again.

State Net General Revenue ended at a minus 9.1% ($6,774,323,530), the largest decline that anyone can remember in state history!  What makes matters worse, the previous record was minus 6.9% ($7,450,783,912), set last year, FY 09.  To put this in prospective, the last time state tax revenue collections dropped two consecutive years was FY 02 and 03 when the decreases were minus 2.0% and minus 3.2% or a combined total of minus 5.2%.  In FY 08, net GR collections totaled $8,003,874,841.

Some of the details behind the FY 10 decline are that Individual Income taxes (which account for 65% of the total state tax revenue) dropped by 7.6%.  Sales and Corporate taxes were each down by 4.9%.  Tax refunds were up 2.0%.

The General Assembly cut $484.0M of General Revenue from the Governor's proposed budget for FY 11, which just began on July 1^st.  While signing the operating appropriation bills last month, the Governor announced that he was withholding an additional $300.0M GR.  His explanation was that some of the budget-related proposals that were part of his budget recommendations did not pass, the administration does not agree with some assumptions in the appropriations and revenue collections continued to fall below estimates.

The challenges for the FY 12 budget are substantial.  This year's budget contains $860.0M of one-time Federal Budget Stabilization Funds which will not be available next year.  That amount will have to be cut from the core budget for FY 12 or a replacement source of income will have to be identified.

The Office of Administration, Division of Budget & Planning is estimating an increase in GR collections in FY 11 of 2.2% which would result in revenues of $6,923,360,000.

From:
Larry W Schepker, Director House Appropriations Staff
State Capitol Room B20, Jefferson City, Mo 65101
Phone: 573-751-3972  Email Larry{dot}Schepker{at}house{dot}mo{dot}gov

Representative Gatschenberger Volunteers at Child Identification Event

The Wentzville Fire Protection District in conjunction with the Wentzville Masonic Lodge 46 hosted a child identification program on July 10^th from at fire station 1 on Pearce Blvd in Wentzville.

MoCHIP has been deemed "one of the most comprehensive child recovery and identification programs in the nation," by The National Center for Exploited and Missing Children.  This is a FREE Child ID program.  Since its inception in August of 2005, the MoCHIP program has seen and identified over 100,000 children making it one of the most successful and thorough of the "CHIP" programs.  Collectively the CHIP programs have processed more than 1,200,000 children throughout the United States.

As previously mentioned, the cost of this comprehensive identification program is FREE.  It is open to all children up to the age of eighteen.  The program provides parents with a CD containing: Physical, personal and medical information, Emergency and medical contacts and Digital photographs and fingerprints.  Also provided with the CD are: Laminated ID cards and a Dental impression wafer with DNA sample.  Also, no information on the child is kept by the MoCHIP program, all of it goes to the parents.

For more information on the MoCHIP program as well as other links to child safety web-sites go to www.mochip.org.

State announces new insurance program for Missourians with pre-existing health conditions

$81 million in federal money will fund new pool

Jefferson City, Mo. – Insurance Director John M. Huff announced today that a new type of health coverage will soon be available for Missourians who have trouble buying insurance because of their medical conditions. The federal government has approved a proposal from the Missouri Health Insurance Pool (MHIP) to run a new high risk pool subsidized by $81 million in federal funding. The program is part of the national health care reform law.

"Because of this federal funding, Missourians with pre-existing conditions will now be able to buy health insurance at competitive rates," said Huff. Under state law, the director of insurance serves on the MHIP Board of Directors and appoints the members.

MHIP has contracted with RightChoice, a subsidiary of Anthem Blue Cross and Blue Shield, to administer the program and Catalyst Rx to provide prescription drug coverage.

To be eligible for the new high risk pool, consumers must be Missouri residents, have a pre-existing medical condition and be uninsured for at least six months. In addition to the $81 million in federal money, the program will be funded by premiums paid by policyholders. The high risk pool will be available until 2014, when the new federal law requires health insurance companies to offer coverage to all applicants, regardless of health status, at standard market rates.

This new pool will be the second operated by MHIP in Missouri. Since 1991, MHIP has run a high risk pool for Missourians, established by state law. The pool has more than 4,000 members. That pool is funded by premiums paid by policyholders and by fees assessed on health insurance companies operating in Missouri.

Consumers can apply online for insurance coverage in mid-July at mhip.org or by calling 1-800-821-2231.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

Media Contact
E-mail: news{at}difp{dot}mo{dot}gov
Phone: 573-751-2562  Fax: 573-751-1165

Gov. Nixon increases travel; other state employees cut back

Thursday, July 1, 2010 | 6:25 p.m. CDT       BY DAVID A. LIEB/The Associated Press
[Link to original article]

JEFFERSON CITY — As part of his plan to shrink government, Missouri Gov. Jay Nixon ordered state employees to travel less, and he sliced their per-mile payment.

Nixon broke the news by flying to Kansas City.

To drive home his point, Nixon repeated the announcement the next day by traveling to Columbia and St. Louis.

While cutting more than $1 billion from the budget, eliminating 2,500 state jobs and halving school busing aid, Nixon has racked up tens of thousands of miles on state airplanes — and billed the costs to the agencies he is cutting.

In fact, a month after announcing travel cuts for state employees, Nixon increased his own airplane travel.

An Associated Press analysis of state flight records, obtained under the state Sunshine Law, shows Nixon flew on state aircraft about once every three days during the past year. And he has continued the practice, first reported by the AP one year ago, of paying for flights out of the diminished budgets of state agencies instead of his own office. That has allowed Nixon to spend more on governor's office staff and expenses.

Nixon, a Democrat, defends his frequent flights as essential to his job.

"I think a governor needs to be in all corners of the state to listen to the concerns of people," Nixon said.

"Some of the places a governor should be are very, very important, and they require modern modes of travel."

In contrast to the Missouri governor, the chief executives of some states have scaled back their taxpayer-funded flights.

Florida Gov. Charlie Crist decreased his travel on state planes by nearly half from 2007 to 2009, as budget pressures mounted and his U.S. Senate campaign began. Colorado Gov. Bill Ritter reduced the annual bill for his state airplane flights by one-third as the recession deepened.

To save money, Vermont Gov. Jim Douglas let foreign governments pay for some of his travels — including two trips to Quebec, Canada, and a six-day visit to France last year, in which Vermont was billed only for his hotel and phone calls.

After media reports about his airplane use, Ohio Gov. Ted Strickland said in April that he no longer would have a state plane flown from one Columbus airport to another to move it closer to his office and home. A Strickland spokeswoman said the governor changed course to save money.

Since taking office as Missouri governor in January 2009, Nixon flew on about 175 days through the end of May at a cost of more than $260,000 — an amount equal to the annual salary and benefits of about five state employees. Nearly all those costs were charged to state agencies — including more than $80,000 to the Department of Economic Development — based on the topic of Nixon's travels.

In the context of a $23 billion state budget, the cost of Nixon's flights might not be as significant as the public image he is portraying, said Tom Schatz, president of Citizens Against Government Waste, a Washington, D.C., government watchdog group.

"This is like saying to your neighbor, 'By the way, I'm going to borrow your car, do some things that I think will be good for the community, and you have to pay for it,'" Schatz said.

"It is something that he simply shouldn't be doing if he really is living by the words he seems to be expressing in terms of fiscal responsibility."

When Nixon announced his blueprint for "right-sizing and refocusing state government" in March, he flew to a meeting of business leaders in Springfield to do so. A month later, he flew to Kansas City for a progress report and announced he had ordered state employees to cut their travel by 10 percent in the next fiscal year. He repeated the message the next day in Columbia and St. Louis — splitting the flight costs among numerous state agencies.

In May, Nixon flew even more frequently than before — averaging a flight every other day and billing agencies nearly $25,000.

At a June news conference announcing more budget cuts, Nixon defended his travel by citing flights to visit the families of deceased soldiers.

"I need to show the respect of the state in many of those ceremonial things, whether it's a graduation ceremony or a welcome home ceremony or honoring someone who's passed," Nixon said. "Those are obligations I think a chief executive of the state needs to engage in."

But a comparison of flight records to the governor's news releases and daily schedule show many flights were to promote policy proposals, announce grants or hold ceremonial bill signings.

Nixon was a passenger on more than 70 percent of all non-law enforcement flights taken from June 1, 2009, through May 31 on the twin-engine, turbo-prop planes maintained by the Missouri State Highway Patrol and the Department of Conservation. The flights typically cost more than $800 per hour.

Other statewide elected officials rarely used the planes. Attorney General Chris Koster flew three times; Treasurer Clint Zweifel twice, both times with Nixon; and Auditor Susan Montee just once. Secretary of State Robin Carnahan and Lt. Gov. Peter Kinder didn't take any flights on state planes, though Kinder did fly once — costing the state $235 — on Southwest Airlines.

When traveling on state business, Kinder typically drives himself in a vehicle paid for by his campaign committee, chief of staff Rich AuBuchon said.

"Given the financial constraints the state of Missouri is under at present, it does not seem prudent to use the state plane for travel," said AuBuchon, who was the deputy administration commissioner under former Republican Gov. Matt Blunt.

Additionally, "it just doesn't look good," AuBuchon said.

STAY IN TOUCH

As always, please let me know your thoughts about these or other matters of concern by calling my office at: (573) 751-3572 or by emailing me at chuck{dot}gatschenberger{at}house{dot}mo{dot}gov

FUN FACTS

You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people's initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.
........Abraham Lincoln