Sater: Creativity Needed In State Budget, Valentine's Day Gift

I have a snow shovel, but I think I need an extra one for my wife. This snow has become a two person job. It can be my valentine gift for her. It has been quite a winter, but at least we did not get any freezing rain. As cold as it has been downed power lines could prove to be very dangerous. So, we can always find something for which to be thankful.

Last week, Jefferson City pretty much shut down. We had one representative involved in a serious accident and many legislators had to spend a night or two in their office. I do not always make the wisest decisions, but I did last week. I was halfway to the Capitol and after listening to a weather forecast decided to turn around and head for home before the snow came. Being 3 1/2 hours away is a different scenario than 1 or 2 hours away.

This week we are in full swing with the legislative committees hearing many bills. Not too much is happening on the floor of the House, but once bills get passed out of committee floor action will increase.

Even though I am not an appropriations chairman this year I am still on the Budget Committee. About this time every year the Budget Committee receives a supplemental bill offered by the governor and sponsored by the budget chairman. The governor cannot sponsor a bill, but sends his proposals through senators or representatives. The reason for a supplemental bill is because our predictions of monies for government programs from last year did not pan out. Each year's budget is a hopeful prediction that will come true, but there are too many variables that can influence funding. One variable is increased Medicaid caseload growth which is related to some extent to the downturn in the economy. This is one of the areas where supplemental requests for more funding will be required.

The most discussed part of the supplemental spending bill [HB14] was 189 million dollars that the federal government gave Missouri to fund our schools for this year. There are strings attached which always happens when the Feds give you money. The money has to be spent in this fiscal year which ends June 30th. In last year's budget, we kept spending for schools level from the previous year. We were able to do this because of the second year of federal stimulus money. Next year we will not have this extra stimulus money. If we spend all of the 189 million this year, we would decrease next year’s distribution to schools and that would really mess up the School Funding Formula. So to make things stable and help schools budget accurately we are withholding money from normal distribution channels and replacing it with the 189 million which we have to spend according to federal guidelines. So, we have withheld normal school funding, replaced it with the 189 million, and then use the withheld amounts for next year's budget, which should equal things out. This works out best for the schools in their budgeting and ours. I hope this made some sense, but sometimes we have to do a little creative bookkeeping.

I do have some better news on the economic front. January revenues increased by 6% over January 2010 figures. This is only one month, but it certainly is encouraging. Not that the state obtaining more revenue is a good thing, but the more money that is collected means more Missourians are making and spending money, and that helps spur on the economy.

I hope everyone is safe and the snow has melted by the time you read this (but I doubt it.) Thank you for letting me represent your interests here in Jefferson City.