Kraus: Standing Up for You

As a Representative who believes in open government, I want to keep readers informed on what bills we passed in the House, what I voted for and why.  But sometimes it is the legislation not passed or the "no" votes that tell the story.  This update is about the other side of being in Jefferson City - where standing up for the people meant standing up against both leadership in the House and special interests and voting no.

Fee Increase on Utility Bills Defeated

As it was first debated in the House, SB 791 created new revenue for the state by placing a fee on your utility bill. Once I discovered this, I was on a path to kill this legislation and argued against the fee.

I had made my opposition to this fee increase known both in committee and to my colleagues.  Therefore, it was tough when leadership did not recognize me to speak during the crux of the debate on the floor. I had to wait until the discussion of the date of effectiveness of the legislation to oppose the increase.

The good news is that the fee was eventually removed from the bill that passed.  I was happy to be able to stand up for consumers, not special interests.  We must keep our utility rates low and our state competitive with other states.

Funding for Education

With five family members who have taught in Missouri schools, I recognize the critical importance of education and the work that teachers do in our classrooms.  As such, I was particularly concerned with the passage of HB 2014, which penalized formula schools such as those in Blue Springs and Lee's Summit by denying them full funding, while providing full funding for hold harmless schools.  When this bill was first brought up in the House on March 18, I was disappointed when leadership stopped debate through a procedural move.  Legislators were then sent home at 10:25 a.m. on a Thursday when we should have been discussing the impact that cutting back funding would have on our schools.

After HB 2014 was sent to and passed by the Senate, it was taken up by the House again on April 8 for final passage. I was again ready to keep the discussion alive with my opposition to this bill.  Instead, it was pushed through by a series of motions.  These actions by the House were not in the best interests of schools in Eastern Jackson County. I voted no on HB 2014.

Missouri's Budget

Each year, we have the responsibility to approve a budget for the state of Missouri that is then sent to the Governor for signature.  I was most disappointed in the proposed $23.3 billion budget for next year – to the extent that I voted against it.  I was happy to see that State Senator Matt Bartle also voted against the budget.

Two principles guided my votes.  One, fiscal responsibility is of utmost importance to create an efficient and sustainable government and to protect the long-term welfare of our state.  We must balance our budget, not by raising taxes on citizens already beaten up by a poor economy, but by controlling expenditures.  I was pleased that we met our pledge of "No new taxes," but I am concerned that the budget relies on $900 million of one-time federal stimulus money.  That's neither wise planning nor careful stewardship of your taxpayer dollars.

Second, quality education should always be a top priority.  The future of our state rests with the abilities and accomplishments of our children, and education is the foundation upon which our children's future is built.  The legislature ended up flattening the education budget for next year, meaning that over $100 million of expected revenue to our schools will not materialize.  School districts have already announced plans to curb costs through such measures as reducing staff, changing schedules, combining class-rooms, and freezing salaries.  I would have preferred a budget that reined in the use of tax credits instead of reducing education funding.

Last Thursday, Gov. Nixon signed off on the budget after cutting nearly $300 million to keep it in balance. Those cuts hit public school busing, college scholarships, state tax credits, mental health services, and in-home car providers for the disabled.

Meetings

Last Friday, I enjoyed speaking to the Lee's Summit Chamber of Commerce at its legislative wrap-up lunch. Unfortunately, my colleagues were unable to attend, but that allowed me more time to discuss the 2010 session and answer questions.

Unclaimed Property

The state may be holding property that belongs to you!  According to the State Treasurer, that office is currently holding close to $13 million that belongs to over 100,000 citizens who live in Eastern Jackson County. Statewide, one in ten people has Unclaimed Property with the average amount being $365.

One of those ten might be you.  To find out, go to www.ShowMeMoney.com and enter your name.  If you find that you are listed, you will need to file a claim form in order to receive your funds or property.  It's worth checking.  Several years ago, I was able to return a little over $30,000 to a woman living in Eastern Jackson County.

You can also contact my office if you need assistance or want more information.

With the ending of the 2010 Legislative Session, the Capitol Report will be issued about twice a month. During this time, if you have an event that you would like me to attend or speak at, please contact my office at 1 (573) 751-1459 or e-mail at will{dot}kraus{at}house{dot}mo{dot}gov.

Roorda: The Truth Behind the Budget, School Funding Proposal Unenforceable, Property Tax Rebate Opportunity

The Truth Behind the Budget

The House of Representatives and Senate have both passed their versions of the state budget for the 2011 fiscal year, which begins July 1. House and Senate negotiators are now working on the final version, which both chamber must pass by a constitutional deadline of 6 p.m. on May 7.

The Senate version of the more than $23 billion budget for the upcoming fiscal year cut about $500 million from the proposed budget the governor presented in January. And that massive cut is in addition to the $300 million in spending reductions called for by the governor.

Although spending reductions are needed to get through the upcoming fiscal year, cutting alone will not put Missouri on a sound financial footing.

This one-sided approach to the budget will mean fewer state services from an already low-service state government and another round of even deeper cuts for FY 2012. It is time to break that cycle.

House Democrats support a balanced approach that includes maximizing the collection of money the state is due and reducing special tax breaks.

Over the last decade, the Republican-controlled General Assembly has steadily eroded the state's tax base by granting tax credits to the politically well connected. These tax giveaways now cost the state $600 million a year and the amount is growing.

In the last decade, the amount of money the state losses from tax credits has increased by 87 percent, with little tangible benefit for taxpayers.

House Democrats voted for some of these credits because they were supposed to create jobs and increase state revenue. But the promised jobs haven't materialized. It is time for the state to re-evaluate its 60-plus tax credit programs and eliminate those that aren't producing a positive rate of return for the state. House Republicans refuse to even have the debate.

Under the Missouri Constitution, the first item lawmakers must fund, after paying the state debt, is our public schools. In reality that is no longer the case. Because tax credits aren't part of the budget, they are taken off the top and are funded automatically - before the state pays the debt or funds public schools.

School Funding Proposal Unenforceable

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 so-called "hold harmless" school districts from the cuts. Hold harmless districts have their state funding frozen at FY 2005 levels but receive more money than they are entitled to under the state's formula for distributing state money to local schools. If 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 since if a court agreed with the governor's interpretation not only would any suing districts still be subject to the spending cut, but they would also incur litigation costs.

Property Tax Rebate Opportunity

The Circuit Breaker property tax rebate is available to certain senior citizens and people who are 100 percent disabled. As of April 9, 2010 DRA has processed $273,184.00 This surpasses last years total by $10,000 and we anticipate another $40-$50,000 additional by years end. There is assistance available to help fill out and file forms as well as determining if you are eligible for the program. You can visit this web page for more information: http://dor.mo.gov/tax/personal/ptc/

If there is anything I can do for you, please do not hesitate to contact my office. I enjoy serving my constituents as "their" voice in the Missouri State Capitol.

Schupp: Taxes Due, House Aiming to Strengthen DWI Laws, Updates from Committees and the Budget

Rushing home to support a friend, visiting Bellefontaine Habilitation Center, sharing in the 90th anniversary celebration of Troop 11 of our Boy Scouts at Temple Israel, and visiting the incredible display of miniatures at the Tappmeyer House served to keep me busy during this weekend.  I am hopeful you, too, were able to enjoy the glorious weather and participate in the many activities and events that make our community so strong. 

All that stated, this look back on the politics and policies of the week relays a grim picture due to the constraints created by this challenging budget year.  Few programs and services will remain whole as the budget lines are drawn.  The question that we must be vigilante in considering is whether, in the end, the budget we have reflects our priorities.

We are still receiving your surveys.  Thank you for taking the time to weigh in.  We will post the results when collection and tabulating are done.

Thank you for this opportunity to serve.

Truly,

Jill


Rep. Schupp and other St. Louis area representatives with members of St. Louis Children's Hospital in House side gallery on Thursday.

DON'T FORGET:  TAXES DUE THIS WEEK!

The deadline to file income tax is this coming Thursday, April 15.  If you have yet to file or need more information to file, feel free to visit the IRS website for your federal filing or the Missouri Department of Revenue's website for your state filing.

As always, if you have questions, feel free to contact our office and we will try our best to assist you.

This week on the House floor

Supplemental Spending Bill Eventually Approved

Colleagues and I heard recommendations, changed votes, and argued on the House floor over one particular piece of a supplemental bill [HB2014]. Interestingly, while this bill could be looked at as controversial in many ways, the heated discussion centered on the fact that the negative impact on school districts would only affect districts that are notcharacterized as "hold harmless." 

The districts that have schools located in the 82nd State House District include Pattonville, Parkway and Ladue. Each of those districts became designated as "hold harmless" when the foundation formula for funding education was changed less than a decade ago. 

Hold harmless districts, which are predominantly suburban districts and certain small rural districts with high local tax levies, don't receive annual increases from the state's education funding distribution formula. At the same time, because the formula, in essence, punishes districts that receive strong local support, the districts receive more than they would be allocated if they were funded through the formula.

This means that while our districts continue to receive some funding from the state, the funding remains at a relatively low and consistent level as state aid to all non-hold harmless districts changes...generally increasing over the years. 

With this year's underfunding of the foundation formula, there is an outcry from the non-hold harmless districts for all districts statewide to share in the cuts, lessening the pain to the non-hold harmless districts.  

The bill passed with no harm being done to the "hold harmless" districts. The Governor does have line-item veto power to remove the controversial provision that exempts hold harmless districts. If that happens, perhaps the "hold harmless" title will have to change.

HOUSE BEGINS DISCUSSION ON STRENGTHENING DWI LAWS

Debate began this week on legislation on [HB 1695] which would create harsher penalties for those caught driving under the influence.  Due to an amendment drafting error, the work done to date on amendments on the house floor might require unraveling, meaning revisiting of the discussion, peeling back the layers of amendments and re-starting from the basic underlying bill.  There is now uncertainty as to whether this legislation will make it through the process during this legislative session.  This is a disappointment to so many who are working to make our roads and our families and friends safer.  While we will link you to the summary, keep in mind that the process and legislation require revisiting.  Click Here to get to the bill's summary.

Committee News

Higher Education

Legislation on the Access Missouri grant program that provides funds to undergraduate students based on need was passed out of our committee this week (HB 1812).  Should the new legislation make its way through the process, it will equalize grant payments to students whether they attend public or private four-year Missouri colleges or universities.  Currently, priviate school attendees receive about double the amount public school attendees receive.  Students who attend two- year schools will receive more money per year than they do currently, but still about half of what the four year attendees receive per year.

This program change will not start until 2014, and the sunset clause in the current legislation is removed in the new legislation.  And, of course, dollar amounts granted to students is always subject to the amount of money appropriated to the program.

While it passed unanimously, some of us still have questions about the timing of the legislation start date and lack of sunset that may be able to be addressed on the house floor.

Children and Families

HB 2384 establishes the Embryo Transfer Act which authorizes the legal relinquishment and subsequent transfer of human embryos.  While I am hopeful our chair will give us ample time to discuss the ramifications of this legislation (this is not always the case), I have concerns about the state's interest in intervening in these private legal matters.  

HB 855, a piece of Senate legislation, is very similar to a House bill that this committee heard earlier this session.  This bill would allow the State Registrar to issue heritage birth or marriage certificates celebrating the unique heritage of Missourians.  This was presented by Rep. Sater who made it clear that this is intended to be a revenue generator for the state.  I am hopeful we can amend the language to ensure that the costs are adequately addressed and covered.  It is a reasonable idea that has worked in other states.

Budget News

SENATE COMMITTEE ELIMINATES CAREER LADDER FUNDING

The Senate Appropriations Committee voted to eliminate the entire $37.5 million for the Career Ladder program that had been approved by the House for next year's state budget. This program provides about 18,000 teachers with extra duty salary supplements ranging from $1,500 to $5,000 a year.
 
The state splits the cost of Career Ladder with participating school districts. Because the state pays its share a year in arrears, money in next year's budget would reimburse districts for expenses incurred in the current school year. That means teachers who performed these extra duties this year will not receive payment for them.  The legislature has not taken action to provide appropriations in advance of the work being done, largely because it would cost the state double in one budget year. In the end, these cuts will break trust with the teachers who were operating in good faith.

IS ANOTHER FREEZE ON PUBLIC COLLEGE TUITION RATES POSSIBLE?

While the House of Representatives agreed to limit cuts to higher education to about $50 million for the 2010-2011 academic year, the Senate Appropriations committee has moved forward a proposal to cut $65 million. This $15 million dollar difference will have a dramatic effect on college students who are hopeful about staving off tuition increases for the next year. The Governor had made a deal with public colleges and universities not to raise tuition in exchange for keeping the state cuts to higher education at $50 million.  The Governor will be working hard to lower these Senate-proposed cuts.

THE NEGATIVE STATE OF STATE REVENUE COLLECTIONS

The Missouri Department of Revenue (DOR) reports net state general revenue collections were down 17.8 percent, or $100.2 million in March 2010 as compared to last March. Year-to-date general revenue collections for FY 2010 are down 13.3 percent year-to-date compared to last year. This drop is from $5.4 billion to $4.68 billion.

Constituent Spotlight

Rep. Schupp participating with 3rd graders from Rossman School in a mock legislative session.  The students, accompanied by teacher Lynn Frankenberger, held a debate on a bill making baseball the official sport of Rossman School.

Nodler: Advocating for Fairness in School Funding

Last week, the Senate passed House Bill 2014, a supplemental appropriations bill. Every year, the Legislature passes this sort of bill to cover budget issues that were not passed or were not funded to the level of being sufficient for the whole year. However, this year, the House version of the bill contained a provision that would lessen the funding promised to many of Missouri’s school districts. While the Senate Appropriations Committee tried to correct the language, an amendment was passed when the bill reached the Senate floor that returned the language to the House position. The provision negatively affects many of the school districts in Southwest Missouri, which is why I voted “no” on the amendment.

The provision affects 372 of the state’s 523 school districts and relates to foundation formula funding. The foundation formula was revised in 2005 to distribute money to Missouri schools using a formula based on student needs, not property values. The new formula was designed to be phased in over five years. However, the law did not include guidance on how to deal with a shortfall of any sort. The problem we face now is that the state is facing a serious budget crunch, and the Legislature is struggling to find a way to balance the budget while also funding education.

When the new formula took effect, most schools in Missouri received an increase in funding. Some school districts in areas with particularly high property tax revenue did not receive an initial increase in their foundation funding and have not been getting increases since 2005 as the formula has been phased-in. The bill as it currently stands would exempt these schools from having to face any funding cuts, even as most school districts in the state are facing a budget crunch. The $43 million in school funding that is being trimmed from the current fiscal year’s spending will not be spread across all schools, but will instead apply to select districts in the state.

The facts of our fiscal situation are not pleasant. Recent revenue numbers for March show that collections are down 17.8 percent compared to last year and year-to-date revenue collections are down by 13 percent. Spending throughout the state must be cut so that we have a balanced budget for both the current year and the upcoming fiscal year. However, in cases when tough choices must be made, we should act fairly, and exempting 151 schools from having to face cuts every other school in the state has to deal with is unacceptable. We must not let this policy of holding certain school districts to a different funding standard continue as we plan the state’s budget for the coming fiscal year.