Schupp: Minority Caucus Discusses Budget, Speaker Opposes Tax Credit Reform, "Cramming" Scam Warning

At the end of last week, members of the minority caucus met and listened to a diverse group of statewide organizations to hear recommendations about how to best deal with the current state of the budget. Jim Moody opened the meeting and set the stage by outlining his prognoses for the state budget situation looking forward. Bleak is an apt description.  Included in his extensive array of credentials are the positions of Former State Budget Director and Commissioner of Administration.

Groups representing diverse interests including focuses on healthcare, education, disabilities, labor, children, public safety, and mental health each took a few minutes to explain how the budget situation might be best addressed.  The overarching recommendation was that revenue generation needs to be part of the conversation. Thus far, it has not been a serious part of the discussion of how Missouri moves forward. Joining these groups with diversity of priorities and interests together is a move toward setting aside specific agendas in order to shore up the state's economy and work toward the greater good.

It is a tense time for all as the Senate and House conferees meet to make final budget recommendations for the next fiscal year.  In the midst of trying to make $500 million in cuts, and consideration of holding back another $300 million for the following budget year, the Governor is busy with cutting and withholding dollars to ensure the current year's budget is in balance.  The Parents as Teachers Program, school transportation and Metro are among the casualties of our economic status.

As we all are learning, there is little closure until the Governor is given the final bills and determines which to change or sign into law.  Even then, the requirement to balance the budget will force him to use the scalpel or ax should revenues continue to decline.

With you, I look forward to developing solutions.

Thank you for this opportunity to serve.

Truly,

Jill


Rep. Schupp presented awards on Thursday for the Sheraton Westport Lakeside Chalet and the Sheraton Westport Hotel.  The hotels were honored at a conference in Columbia for attaining Certified Green Hotel recognition.

This week in the House

TAX CREDIT REFORM, SPEAKER SAYS NO

Governor Nixon is championing the charge to reconsider some tax credits in the wake of our budget woes.   In an appeal to stop the bleeding in other areas of the budget, the Governor has put out the message that  comprehensive tax credit reform is the next place to look.  Speaker Ron Richard said the House won't even consider reform legislation.

With more than 60 tax credit programs inthe state, the cost is about $600 million a year in uncollected revenue. I support the Governor's position that these programs need to be examined, and those that are not effective should be eliminated.  It has become obvious that we need a strong mechanism in place to evaluate the successes of these programs which provides not only short term review, but a look at the long term pay off for the state.  Particularly during a budget crisis predicted to last for several years, we need to take care not to undermine our long term efforts for short term gain.  The balancing act forces us to put everything on the table.
 

HOUSE ENDORSES COLLEGE SCHOLARSHIP EQUALIZATION

 
This week in the House, The changes to the Access Missouri scholarship program [SB733] passed.  As a reminder, the current law provides these need-based scholarships to recipients who attend private colleges or universities up to $4,600 a year, while those who attend public schools get no more than $2,150 annually. New legislation, starting in 2014, would give all recipients up to $2,850 year.  Eligible students who attend 2 year colleges would receive $1300 per year.

Committee News

Higher Education

HB 733--This bill changes the law regarding Higher Education Academic Scholarship Program, also known as Bright Flight Scholarship Program, and the Access Missouri Financial Assistance Program.
 
Bright Flight Scholarship
A recipient must be a Missouri resident to be eligible and eligibility has been extended to students who have received a General Education Development diploma or completed homeschooling. Eligibility is otherwise based entirely upon a student's score in the ACT or SAT college entrance exams.

The students in the top 3% will receive equal amounts of up to $3000 each depending upon appropriations.  If there is additional money available,  students in the top fourth and fifth percentiles will receive up to $1000 each.   A student who is in the military service will receive their scholarship if he or she returns to school full-time within six months after ending service and with the verification of the Coordinating Board for Higher Education.
 
Access Missouri Program 
In addition to the information from the House Floor section above describing the award amounts for Access Missouri, there has also been a change in the GPA (Grade Point Average) requirements.  I wrote about this earlier this session.   New law, should it pass through both chambers, will require students who have taken less than 60 semester hours to maintain satisfactory academic progress, with a minimum GPA of 2.0. Satisfactory academic progress is determined by the institution the student attends.  A student who has more than 60 semester hours is to retain at least a 2.5 GPA.

Tax Reform

A bill [SB883] to allow for the Mayor and Board of Aldermen of St. Peters to levy a license tax on hotels and motels failed in committee.

Property tax deferral for senior citizens on fixed income (HB 1835) was heard in committee.  As mentioned earlier, I was not able to be present.  I look forward to the Executive Session when committee members can have discussion, debate, create amendments and vote on the bill.

Children and Families

Legislation heard proposed that the marriage license fees will be reduced if the couple completes premarital counseling outlined in the bill [HB1234].  Our committee chair and her husband, after 6 hours of training, and additional consultation with their minister, are considered qualified to evaluate whether a couple should marry.  They would make a recommendation to their minister regarding the couple.

Once married, if a couple plans to divorce and there are minor children involved, the couple must wait a year after filing for divorce to finalize those plans with a few exceptions for physical abuse, adultery, and mental illness that has occurred for at least three years.

Budget News

GOVERNOR MAKES ANOTHER $45 MILLION IN MIDYEAR CUTS

From the Minority Caucus Office

A continuing decline in state revenue collections forced Gov. Jay Nixon to cut another $45 million from the current state budget to keep it in balance as required by the Missouri Constitution. To date, the governor has cut more than $900 million from the state operating and capital improvements budgets for the 2010 fiscal year, which ends June 30.
 
The governor's latest cost-savings actions include reducing state funding for local school districts' student transportation costs by an additional $8 million, cutting another $4.9 million from the Parents as Teachers program, withholding a $4 million payment for the Metro mass transit system in St. Louis and reducing biodiesel subsidies by another $3.2 million.
 
As of April 20, net general revenue collections for April have fallen 19 percent. According to the Missouri Division of Budget and Planning, a key contributing factor in the decline is that the average state income tax refund is up nearly 8 percent compared to last year, while the average payment is down nearly 30 percent. Year-to-date revenue collections for FY 2010 are down 13.8 percent compared to FY 2009.

Attorney General Koster warns of escalating "Cramming" scam

Information provided from the Attorney General's Office

Attorney General Chris Koster said that a scam called "cramming" ranks near the top of complaints his office receives each year.

Koster said telephone companies contract to provide billing and collection services for third-party companies. Cramming happens when a third-party company adds a charge to your phone bill for a service you didn't order, such as voicemail, Internet service, or calling cards. He said these charges are sometimes hidden on the phone bill under such titles as "enhanced services," "activation," or "web hosting."

"Unethical companies are betting that consumers won't read their phone bills," Koster said. "That's why it's important that consumers carefully review their phone bills each month."

Koster cautioned consumers about entering contests and sweepstakes at fairs or festivals because some entry blanks may double as authorization forms to add phone services. He said people also can get crammed as a result of signing "bonus checks" they receive in the mail and by responding to offers of prizes and cash solicited by mail.

"Always read the small print, and if a form or a caller asks for your phone number, ask questions and find out why they need the number," Koster said. "If you do get crammed, call your local phone company immediately and ask that the charges be removed, and call the company named on the bill and explain you did not request the services and ask that they be removed. Then call the Attorney General's Consumer Hotline at 1-800-392-8222 and file a complaint."

Koster said his office received 705 cramming complaints in 2009 and his Consumer Complaint Division is currently investigating a number of companies for the practice.

Schupp: A "Taxing" Week, Changes in Election Laws, Bright Flight Increases

From requirement of photo ID for voters to DWI legislation to election reform, it was a week filled with impassioned debate.  I was excited to have been successful in encouraging the chair of the Tax Reform Committee to bring forward a bill providing for property tax deferral for senior citizens on fixed incomes.  This legislation, sponsored by my good friend, Representative Jake Zimmerman, has been around for a long time.  I testified in support back in the early part of the decade when I served on the School Board.  Ironically, while the bill was heard in my committee, I could not be there due to the routine scheduling conflict with another one of my committees where I was offering amendments.

If I said it was a "taxing" week...well, you understand.

Thank you for this opportunity to serve.

Truly,

Jill



Rep. Schupp and other women representatives participated in Hat Day as part of Winning Women's Day at the Capitol.

This week on the House floor

ELECTION CHANGES

The House gave preliminary approval to a proposed constitutional amendment requiring three-fifths (60%) supermajority for Missouri voters to ratify future constitutional amendments. If the measure clears both chambers, it would be subject to voter approval.
 
This resolution, HJR 78, also contains a provision that would allow amendments ratified with just a simple majority between Nov. 1, 2001, and Nov 1, 2010, to be repealed with a simple majority. This provision only applies to a few amendments, but, as the bill sponsor agreed upon questioning, was to make sure a 2006 amendment that narrowly passed prohibiting the outlawing of stem cell research could be repealed by a simple majority. In other words, stem cell opponents want to be able to overturn the ability to engage in stem cell research in this state by simple majority.

The House heard two additional election bills, HB 1966 and HJR 64, which each have two key components:

First, the bills allow for "no excuse required" early voting in elections.

The second part of each bill requires all voters to present photo identification to vote.  The debate on these two separate provisions was vigorous.  While both sections passed, there is evidence demonstrating that requirement of a photo ID is a burden on the poor, elderly and disabled and will disenfranchise many who would otherwise be involved in the electoral process.

Committee News

Higher Education

SB 733—Legislation proposing changes to the Bright Flight Scholarship program was heard this week.  The changes would increase the amount top scholars (those scoring in the top 3% statewide on the ACT or SAT) receive to a maximum award of $3000.  Depending upon appropriations, if there is enough revenue for each student scoring in this top tier, awards of up to $1000 will be given to students scoring in the 4th and 5th percentile.

A new provision was just distributed that attempts to close records when the university (or public institution) is working in cooperation with a private institution to promote economic development.  The idea is that the protection of intellectual property is an essential tool in business development, competition and negotiation.

As a staunch believer in open government and the importance of the Sunshine Law to all of us,  I am waiting to hear from various professionals to understand fully the ramifications of this proposed change in law.   It seems reasonable that this information should remain private during the development period.  That stated, it is not clear to me what the broader implications of this change might be.

Tax Reform

A bill [SB883] to allow for the Mayor and Board of Aldermen of St. Peters to levy a license tax on hotels and motels failed in committee.

Property tax deferral for senior citizens on fixed income (HB 1835) was heard in committee.  As mentioned earlier, I was not able to be present.  I look forward to the Executive Session when committee members can have discussion, debate, create amendments and vote on the bill.

Children and Families

Last week I wrote about a piece of Senate legislation [SB855] which would allow the State Registrar to issue heritage birth or marriage certificates celebrating the unique heritage of Missourians.  This week, at the 11th hour, the Children and Families committee chair put forward a substitute bill adding provisions allowing any  adopted person, age 21 or older, to acquire an unaltered birth certificate.  Simply put, this legislation undermines any promise: implied, perceived or actual that allowed the birth mother of an adopted child to remain anonymous.

While proponents of this issue state that no biological parents have stepped forward to, or have gone on record as opposing this legislation, it is clear that doing so would change their status of anonymity.  Today's technology provides many opportunities for birth parents to reach out to their adopted children if they so desire.

The chair did not have the committee vote to remove this section, since it was clear that the provision would have been voted out of the bill.

Budget News

SENATE CUTS $453.8 MILLION FROM FY 2011 STATE BUDGET

From the Dem Caucus Communications Director

The Senate passed its version of a more than $23 billion state operating budget for the upcoming fiscal year, cutting $453.8 million in proposed spending recommended by Gov. Jay Nixon in January. The Senate cuts are roughly double the $224 million in reductions the House of Representatives approved last month. Because the state's revenue projections have worsened significantly in the months since he offered his proposed FY 2011 budget, Nixon is generally supportive of lawmakers' actions to further reduce spending.
 
The full Senate reversed a committee's decisions to eliminate the $37.5 million needed to fund the Career Ladder program, which provides teachers extra pay for extra duties, and to cut an additional $14.8 million for colleges and universities, which had agreed to freeze in-state tuition for the 2010-2011 school year in exchange for a cut of no more than $50 million. By agreeing to limit the cut to the agreed amount, the tuition deal remains in place. House and Senate negotiators must now work out a final version of the budget, which both chambers must approve no later than May 7. 
 

NIXON SAYS SCHOOL FUNDING PROVISION UNENFORCABLE

Gov. Jay Nixon signed a midyear state spending bill into law on April 13 but declared that a controversial provision of the measure that would exempt 152 local school districts from sharing in a $43 million shortfall in education funding for the final months of the 2010 fiscal year is unconstitutional and won't be enforced. As a result, all 523 Missouri school districts are expected to get a 2 percent cut in their expected state funding for the current school year, although it possible a lawsuit could be filed challenging the governor's interpretation.
 
A provision of HB 2014 exempts "hold harmless" school districts from the cuts. Hold harmless districts have their state funding frozen at FY 2005 levels. If the hold harmless status is enforced, the provision would result in the remaining 371 districts enduring even deeper cuts than the 2 percent called for in the governor's plan.
 
In a signing statement attached to the bill, Nixon said the disputed provision violates the Missouri Constitution's ban against legislating in appropriations bills. Although the statement carries no legal weight, it potentially could serve as warning against hold harmless districts suing to enforce the provision. The districts in the 82nd State House district are all "Hold Harmless."

Green Tip of the Week

Consumer Tips for Getting an Energize Missouri Appliance Rebate

Five things consumers need to know about the program

JEFFERSON CITY, MO, APRIL 14, 2010 - A federally-funded home appliance rebate program is intended to improve energy efficiency and stimulate the economy using funds from the American Recovery and Reinvestment Act, or Recovery Act. States around the nation are giving rebates to consumers to replace inefficient home appliances with energy-efficient models.

Missouri's $5.6 million Energize Missouri Appliance Rebate Program starts April 19 and will fund rebates for five appliance categories - space heating, space cooling, water heaters, clothes washers and dishwashers. Consumers can qualify for rebates from $75 to $500 with a maximum of $575 for multiple appliances. The department anticipates issuing 48,000 rebates during the program. Rebate reservations are available on a first-come, first-served basis. Experience in other states shows the program is very popular, and the funds will go fast.

Missouri has scheduled its rebate program to coincide with the "Show Me Green" ENERGY STAR® sales tax holiday. Consumers who wish to take advantage of the rebate program and the state sales tax holiday must purchase the ENERGY STAR appliances between April 19-25 in participating retail and installation contractor businesses.

Consumers should plan ahead and be ready to buy the qualified appliance when the programs begin next week. Here are five ways to maximize consumer savings:

1. Learn more about the Energize Missouri Appliance Rebate Program.
   Consumers must purchase ENERGY STAR appliances to replace older, less efficient models. Consumers must recycle the old appliance to qualify for a rebate. Consumers may want to consider the following steps to help during the rebate program.
   
   • Step 1 - Make a Purchase:  Starting April 19, consumers may visit a participating retailer or installation contractor partner to purchase ENERGY STAR-qualified appliances and reserve a rebate.
   • Step 2 - Reserve a Rebate:  Starting April 21, a limited number of rebates will be available for consumers to reserve directly online at www.MissouriApplianceRebate.com or via telephone at 877-541-4848. The program's online reservation system will enable consumers to quickly and easily reserve a rebate and print out their rebate application directly from a web-enabled computer. Participation in this program is expected to be high. This could mean longer wait times if consumers try to reserve a rebate on the phone instead of at the store or online. Consumers will have 60 days after reserving a rebate to purchase a qualified appliance from a participating retailer or installation contractor.
   • Step 3 - Recycle:  Most participating retailers and installation contractors will collect and recycle the old appliance when they deliver the new appliance. Consumers can also recycle their old appliance at a recycling facility or turn-in event. Consumers must show proof of recycling. Visit the Web site at MissouriApplianceRebate.com for details on recycling.
   • Step 4 - Document and Mail:  Consumers must sign and mail their completed rebate application form along with the proof of purchase, residency and recycling to Energize Missouri Appliance Rebate Program, Dept 21282 P.O. Box 3688, Medina, OH 44258-3688 within 60 days of making a reservation. Consumers can expect to receive a rebate check(s) for valid claims within 4-6 weeks from the day they mail in their rebate application.
2. Meet the Eligibility Requirements - Consumers will qualify for a rebate only if they meet all of the following conditions:
   
   • Must be a Missouri resident and 18 years of age or older.
   • Own the property where the appliances will be installed, with the exception of clothes washers. Renters are eligible for clothes washer rebates.
    
   • Buy only one appliance per appliance category per address. Rebates range from $75 to $500 with a $575 maximum rebate allowed for multiple appliances.
   • Purchase an ENERGY STAR-qualified appliance from a participating retailer or installation contractor.
   • Mail in the rebate application form along with all required support documentation postmarked within 60 days of making the reservation.
3. Buy on April 19 or 20 - Consumers best chance for securing a rebate is through a participating retailer or installation contractor. The funds may go quickly.  If a particular retailer or installation contractor is not currently registered as a partner in the program, consumers may contact them to participate.
4. Keep a Copy of the Paperwork - To secure a rebate, consumers are required to mail in a copy of their completed and signed rebate application (with unique ID#), proof of purchase, proof of residency and proof of recycling. Consumers should make sure to save copies of all of the paperwork!
5. Enjoy the Savings - ENERGY STAR qualified appliances are designed to use 10 to 50 percent less energy than standard appliances, resulting in savings for the consumer, as well as reduced emissions of greenhouse gases and pollutants.

 
To learn more about the Energize Missouri Appliance Rebate Program and to find your local participating retailers, please visit MissouriApplianceRebate.com

Information provided by the Missouri Department of Natural Resources.