Goodman: The Fiscal Note

My newsletter the "The Fiscal Note" is now available online! You can access the newsletter by clicking here:
The Fiscal Note.

Thank you for taking a few moments out of your busy schedule to look over this information. I hope you find the articles informative and helpful in understanding the work your state government did this year to help make Missouri a better place to realize your dreams and pursue prosperity.

I am genuinely grateful for the opportunity to serve you in the Missouri Senate.

Jack Goodman,
Senator District 29

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Legislature Passes Fiscally Responsible Budget

Like most states across the nation this year, Missouri confronted a historic budget crisis with severely declining revenue, but continued demand for government programs and services. As session progressed, it became increasingly clear that unprecedented revenue shortfalls would force the Legislature to make very difficult decisions to preserve the future economic stability of our state.

The Missouri General Assembly is constitutionally mandated to pass a balanced, responsible and realistic state budget each year by a certain deadline (this year’s was May 7). As a starting point for determining the state budget, legislators considered the governor’s budget proposal, which he submitted to the Legislature at the beginning of this year.

Unfortunately, the budget scenario originally presented by the governor did not prove to be accurate. One problem was the governor’s reliance on overly optimistic revenue projections for the remainder of the current and upcoming fiscal years. The other problem was the governor’s ill-advised dependence on $300 million in additional, unrealized federal funds. To date, no bill guaranteeing extra money has been passed by Congress, and quite frankly, it would be the height of irresponsibility for state lawmakers to continue relying on the federal bailouts as a legitimate funding source, rather than reducing the ongoing cost of government.

Without the hypothetical $300 million in the governor’s original budget proposal, funding for state departments, programs and services was especially tight. For FY 2010, which ended June 30, 2010, net general revenue collections declined 9.1 percent compared to FY 2009, from $7.45 billion last year to $6.77 billion this year.

Ultimately, the Legislature reduced the FY 2011 budget by nearly $500 million from the budget proposal offered by the governor in January (FY 2011 runs July 1, 2010, through June 30, 2011). These cuts were needed because, unlike the federal government, Missouri lawmakers are required by law to ensure that the state does not spend beyond its means. The recession has left legislators with no choice but to reduce costs. As a lawmaker who was present for the last round of drastic budget cuts, I can assure any doubters that, regardless of party, it is gut-wrenching to consider cutting programs and services that people truly rely on. These are the types of decisions that were required of us this session.

Here in Missouri, the Legislature maintained its commitment to fiscal responsibility. Although budget cuts are painful, we must never forget our duty to thoroughly examine every single taxpayer-provided dollar state government spends to determine if that expenditure is vital to Missourians. I feel fortunate to have so many like-minded, fiscally conservative colleagues who refuse to vote for job-killing taxes and who are willing to shoulder tough budget decisions to ensure the state’s future prosperity.

Taxpayer Shakedown

At the end of June, the governor called a special session to pass tax credits for a specific auto company and its suppliers, as well as state employee pension reform [SB1] — two issues that failed to reach a consensus during the regular session. This time around, both bills were ultimately sent to the governor’s desk, though I, along with a few of my colleagues, did our best to stand against HB 2, the $150 million tax credits package.

I appreciate the value of the jobs and economic activity that a large industry brings to our state, but the government should treat everyone with an even hand. Many employers in the 29th District are struggling to maintain payroll without cutting jobs. If one of these small- or medium-sized businesses told the governor they would leave the state if the taxpayers didn’t bail them out, it wouldn’t matter. These businesses lack the same bargaining strength as major national corporations. I hate to see any job lost, but I do not think government can or should be all things to all people. I do, however, think government should be the same thing to all people. Government must stop the practice of choosing winners and losers by giving perks to some at the expense of others.

It is also significant to remember that this tax incentive would come in a year when the governor has withheld funds from infrastructure and education, expenditures that I consider to be more sound and appropriate investments of taxpayer dollars than investing in select private companies. Instead, we should pursue job creation by maintaining an educated workforce, solid infrastructure and the tax and regulatory relief that encourages all to privately invest in Missouri jobs.

Protecting Taxpayers' Rights

An old battle continued in the Legislature this year over taxpayers’ rights. I was right at the heart of debate, fighting for the proper use of taxpayer dollars and standing firm against taxpayer subsidies for illegal drug use among welfare recipients.

I sponsored SB 615 to allow drug testing of work-eligible recipients of Temporary Assistance for Needy Families (TANF) if there is reasonable suspicion that a recipient is using drugs. If an individual tests positive for a controlled substance, he or she would be ineligible for benefits under the program for three years and would be referred to a substance abuse treatment program. Dependents of a person who tests positive for drug use would continue to receive benefits through a third-party payee. Thus, innocent family members would not be penalized, but drug users would not be able to get their hands on the money.

Of course, we want to curb illegal drug use in Missouri, but this bill is about more than the war on drugs. Taxpayers have a reasonable expectation that their hard-earned dollars should not be used to foot the bill for illegal behavior. Many Missourians already feel as though the federal government is recklessly spending their tax dollars on bank bailouts, special interest projects and “job creation” bills that do not actually create sustainable jobs. Sometimes it seems like government is interested in helping everyone except the taxpayer who pays bill. Here in Missouri, the Legislature must take steps to protect taxpayers’ rights. I believe one guarantee that should be made to Missourians is that their hard-earned tax dollars will not subsidize drug use by those on government programs.

Simple drug tests are required for many jobs across the state. It is fundamentally unfair to take money from taxpayers who must pass drug tests at their jobs, then give that money to potential drug users. Additionally, the TANF program was designed to help people transition back to work. If recipients cannot pass a simple drug test, the stated goal of getting the recipient back to work cannot be achieved and the entire program becomes a failure.

Drug testing would also help separate the people who are abusing the system from those who really need help getting back on their feet. Unfortunately, SB 615 did not receive final approval this year. However, protecting the taxpayer from reckless government spending will remain one of my highest priorities next year.

Rebooting Government

The severe, worldwide economic downturn and resulting state budget crisis requires your Missouri government to do more than merely cap spending. We must rethink how government works and make meaningful changes to improve efficiency and effectiveness with fewer resources. This session, the Missouri Senate worked to advance this goal through its “Rebooting Government” initiative, designed to collect and implement citizen-submitted ideas to cut costs and improve government efficiency.

The Missouri Senate devoted real time to reviewing hundreds of ideas it received from Missourians for downsizing and streamlining government. Several senators presented strategies implementing the best of the suggested solutions through legislation.

In all, it was estimated that Rebooting Government recommendations could have saved Missouri taxpayers between $690 million and $790 million per year. Although many of the reforms encountered stiff resistance, it was a worthwhile exercise for legislators to step back and take a fresh look at old practices, and reassess whether Missouri can afford to keep doing business as usual. As further budget reductions will likely be required next year, the Legislature must continue the pursuit of strategic restructuring to enhance efficiency and ensure it is rendering the best product for the least cost to the taxpayers supporting the operation of Missouri government.

Pension Reform

One positive outcome of the special session was the successful passage of state employee pension reform, a move that is expected to save around $660 million over the next 10 years. This measure was necessary, as we simply cannot sustain the costs of the system in its current form. We had to move toward a plan the taxpayers could afford and that was sustainable so the state could keep its promise to its employees. The legislation we passed during the special session will create a different retirement plan for any person who becomes a new state employee on or after January 1, 2011.

Members of this new plan will contribute 4 percent of their pay to the retirement system and must work for the state for at least 10 years to be vested. Also, to be eligible for normal retirement under this plan, employees will be required to reach age 67 and have at least 10 years of service, or reach age 55 with the sum of their age and service equaling at least 90. These meaningful changes will help ensure that the system doesn’t crash down around us as we work toward an economic recovery.

While I am pleased that we made changes that will create a more sustainable pension system, I will not support any future moves to alter the retirement system currently in place for teachers. The Public School Retirement System (PSRS) and Public Education Employee Retirement System (PEERS) together comprise the largest retirement system in Missouri, and should not be subject to changes by the Legislature, as they have already proven they are successful on their own. The legislation we passed during the special session will not affect PSRS/PEERS, but if any such proposal springs up next year, I will stand firmly against it.

Gatschenberger: Special Session Report, Annexation Law Signed, State Jobs Report

Special Session Report

In late June, the Governor called us back to the building for furthered debate of the Manufacturing Jobs Act [HB2] and a bill that would make changes to state employee pension [SB1].

The House got to work immediately and convened for a one day session, pushing both bills out the door to the Senate. Although the Senate sent the pension bill to us in a timely manner, they sat on the Manufacturing Jobs Act for quite some time.

The Senate finally passed the bill and sent it back to us. That same day, we truly agreed to both bills and sent them on to the Governor's desk for approval.

Manufacturing Jobs Act

Tax incentives have been a proven-effective way to create jobs in Missouri.  Through the Manufacturing Jobs Act, auto manufacturing companies are able to keep half of the withholding taxes for each full time employee, but only if that company continues to make investments in their infrastructure.  Qualified companies must make a $75,000 investment per employee to take advantage of these benefits.

One of the prime intentions of the legislation is to allow the Ford plant in Liberty to continue operation and build the facilities for a new line of automobiles.  This plant employs several hundreds of Missourians and it would do significant harm to our unemployment rate if Ford chose to leave the state. It is our hope that through the Manufacturing Jobs Act, they will leave their doors open and continue to add to Missouri's rich economic environment.

State Pension

The Governor chose to tie the state pension reform bill to the jobs bill for Special Session. Although I don't believe these pieces of legislation are co-dependent, we answered the Governor's call and passed the legislation.

This bill changes the requirements for new state employees hired after January 1st, 2011.  These new employees will be required to contribute 4% of their salary to their own pension fund, instead of the state paying it for them- which is the current process.  According to this legislation, 10 years of employment with the state is required before the employee can become vested in their retirement.

Further, to be eligible for normal retirement under this plan, employees must reach age sixty-seven and complete at least 10 years of service or reach age fifty-five with the sum of the employee's age and service equaling at least ninety.

In light of our economy and the serious condition of our state budget, the House worked swiftly to pass both bills so that no more tax dollars than absolutely necessary would be spent on Special Session.

Special Session has now adjourned and I look forward to coming back to the building for Veto Session in the fall.

A Message for you from MODOT:  WESTBOUND Route 40 @ Boone Bridge to be CLOSED the entire weekend August 27 thru August 29 for bridge repair work.

Governor Nixon signs legislation into law sponsored by Representative Chuck Gatschenberger

[Operator's note: The bill signed into law was HB1806. Rep. Gatschenberger proposed HB2312, a similar bill which did not advance from committee.]

This bill stops local cities from annexing any territory (i.e. Research Parks) without getting the consent of all the current property owners located within the unincorporated area of such parcels.

"Without this legislation, all the businesses in the Missouri Research park (located @ Hwy 94 and Interstate 64) would have to pay between $50,000 to over $250,000 in extra taxes as an added business cost.  This is unacceptable!  These companies (in just this one business park) would possibly have had to lay off roughly 35 to 50 employees just to pay these added taxes and that is wrong.  We need to help our companies in our state not throw them under the bus.  I want businesses to think of Missouri as a good place to do business and that means more jobs for the people that live in our state." … Representative Gatschenberger said.

Standing with Representative Gatschenberger are Cheryl Renne, Controller for Nike and Dennis Fitzgerald from Zoltek.

DED releases June 2010 state jobs report

Release Date: 07/12/2010
Contact: John Fougere, (573) 522-5058

JEFFERSON CITY – Missouri's labor market conditions continued to improve in June, according to data released today by the Missouri Department of Economic Development (DED). Missouri's nonfarm payroll employment increased by 3,600 jobs during the month, on a seasonally-adjusted basis, marking the fifth consecutive month of positive job growth in the state. Missouri's net job growth since January 2010 now stands at 26,600, an average of 5,300 new jobs created each month.

The state's seasonally-adjusted unemployment rate stood at 9.1 percent in June, the lowest rate in more than a year, down from 9.3 in May. The state's not-seasonally adjusted rate increased by half a percentage point to 9.2, a standard practice in June each year as summer jobseekers enter the labor force. In comparison, the U.S. rates for June 2010 were 9.5 seasonally-adjusted and 9.6 not-seasonally-adjusted.

The private sector added 6,000 new jobs in June, with noteworthy growth occurring in construction (+1,100); durable goods manufacturing (+2,300, spread through a number of industries); and transportation, warehousing and utilities (+2,200). Increases came in spite of the loss of 3,300 federal government jobs in June, mostly temporary Census workers.

Most other industry groups saw comparatively small changes. The leisure and hospitality industry as a whole saw little change from May as its two major sectors went in opposite directions. Arts, entertainment and recreation saw an employment gain of 1,900, while accommodation and food services employment was down by 2,200.

Payroll employment in the state's metropolitan areas decreased in some areas and increased in others. The reduction of temporary census workers played a substantial role in many areas, particularly in St. Louis (-2,600) and Kansas City (-2,600). On the plus side, Joplin (+1,000) led the way in gains, while most others were relatively unchanged.

Pro-Life Ultrasound Bill Becomes Law!

I am pleased to report that the pro-life ultrasound bill [SB793] adopted by the General Assembly this past session will now become law.  Governor Jay Nixon's office allowed Senate Bill 793 to become law without his signature. July 17^th was the constitutional deadline for the Governor to either sign or veto the measure.  He has declined to do either, meaning the bill will become law as if he had signed it.

This is a monumental victory for women and children in Missouri.  For the first time since Roe v. Wade, women entering abortion clinics in our state will be told the truth about abortion and what it means to them and their unborn child.  The new informed consent law ensures that abortion-minded women are advised of the immediate and long-term risks of abortion to their physical and mental health.  Women will also be informed of the humanity of their preborn child, and given the opportunity to see an ultrasound and hear the heartbeat of that child.

This legislation also exempts Missouri from the abortion mandate contained in the new federal health care bill.  Health insurance policies sold in Missouri through federally subsidized health insurance exchanges will not be allowed to cover abortions.  As a result, Missourians will not be required to underwrite the destruction of unborn children in our state through their taxes or their health insurance premiums.

This is the most significant piece of pro-life legislation to become law in Missouri in nearly 25 years.  Women faced with unintended pregnancies will get what they deserve:  full disclosure of the alternatives before them so that their decision is truly informed.  We thank God for what this means for generations of children and their mothers in our state.   Many women will be spared the heartache and indignity of abortion.  Many children will know the joys of life and the love of family.

NISC on Computerworld's Top 100 Best IT Places to Work

Suburban Journal (July 24, 2010) --- Computerworld ranked NISC 22nd in the nation in the magazine's annual Best Places to Work in Information Technology. NISC is ranked No. 3 in the nation for businesses with fewer than 2,500 employees. The company has 780; they're evenly divided between Mandan, ND and Lake Saint Louis, MO.  The ranking is no fluke. Computerworld has ranked NISC in the top 100 eight times in nine years. Read More...

EDC incubator welcomes 4 new tenants & 1 graduation

Four new business tenants and one graduation from the small business incubator operated by the Economic Development Center of St. Charles County, was announced today by EDC officials. New tenants include Clarus Communications, Conscious Sedation Consulting, 1st Integrity Enterprises and Luxury Bath of St. Charles.

The latest graduate from the EDC incubator program is Pro Basement Finishers, a basement remodeling and finishing company, who expanded and opened their new office in O'Fallon. Read More...

Inherited Deficit

The Washington Post babbled about Obama inheriting a huge deficit from Bush.  Amazingly enough, a lot of people swallow this nonsense. So once more, a short civics lesson…

Budgets do not come from the White House. They come from Congress, and the party that controlled Congress since January 2007 is the Democratic Party. They controlled the budget process for FY 2008 and FY 2009, as well as FY 2010 and FY 2011. In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.  For FY 2009, though, Nancy Pelosi and Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Obama could take office. At that time, they passed a massive omnibus spending bill to complete the FY 2009 budgets.

And where was Obama during this time?  He was a member of that very Congress that passed all of these massive spending bills, and he signed the omnibus bill as president to complete FY 2009.   Let's remember what the deficits looked like during that period:

If the Democrats inherited any deficit, it was the FY 2007 deficit, the last of the Republican budgets.  That deficit was the lowest in five years, and the fourth straight decline in deficit spending.  After that, Democrats in Congress took control of spending, and that includes Barack Obama, who voted for the budgets. If Obama inherited anything, he inherited it from himself. In a nutshell, what Obama is saying is I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th.    WAKE UP, AMERICA, BEFORE ITS TOO LATE  !

Fun Facts

A chemistry professor in a large college had some exchange students in the class. One day while the class was in the lab the Professor noticed one young man (exchange student) who kept rubbing his back, and stretching as if his back hurt.

The professor asked the young man what was the matter. The student told him he had a bullet lodged in his back.  He had been shot while fighting communists in his native country who were trying to overthrow his country's government and install a new communist government.

In the midst of his story he looked at the professor and asked a strange question.  He asked, "Do you know how to catch wild pigs?"

The professor thought it was a joke and asked for the punch line.  The young man said this was no joke.  "You catch wild pigs by finding a suitable place in the woods and putting corn on the ground. The pigs find it and begin to come everyday to eat the free corn. When they are used to coming every day, you put a fence down one side of the place where they are used to coming.  When they get used to the fence, they begin to eat the corn again and you put up another side of the fence. They get used to that and start to eat again. You continue until you have all four sides of the fence up with a gate in The last side. The pigs, who are used to the free corn, start to come through the gate to eat, you slam the gate on them and catch the whole herd.

Suddenly the wild pigs have lost their freedom. They run around and around inside the fence, but they are caught. Soon they go back to eating the free corn. They are so used to it that they have forgotten how to forage in the woods for themselves, so they accept their captivity.

The young man then told the professor that is exactly what he sees happening to America.  The government keeps pushing us toward socialism and keeps spreading the free corn out in the form of programs such as supplemental income, tax credit for unearned income, tobacco subsidies, dairy subsidies, payments not to plant crops (CRP), welfare, medicine, drugs, etc.. While we continually lose our freedoms -- just a little at a time.

One should always remember: There is no such thing as a free lunch!  Also, a politician will never provide a service for you cheaper than you can do it yourself.

Also, if you see that all of this wonderful government "help" is a problem confronting the future of democracy in America you might want to send this on to your friends. If you think the free ride is essential to your way of life then you will probably delete this email, but God help you when the gate slams shut!

Keep your eyes on the newly elected politicians who are about to slam the gate on America.

"A government big enough to give you everything you want, is big enough to take away everything you have." –Thomas Jefferson

Nodler: Work Stalls as the Price Tag of Special Session Increases

Technically, this week marked the second week of a special session called by the governor to address pension reform and economic incentives for manufacturers. However, in actuality, very little legislating actually took place, as a stalemate between the House and Senate continues to bog down the legislative process.

As I stated last week, I am against the legislation we are discussing during this special session. We were called to the Capitol to try and pass a bill [SB2] that is meant to lure Ford into staying in Claycomo, near Kansas City—a bill that may or may not result in the desired effect. In an effort to lessen the effect of the bill on the state’s finances, the governor has also asked us to consider legislation [SB1] that would make reductions to the state’s pension system. I voted no on both of these bills during the regular session, and I will vote the same way during this special session.

Many had hoped that the special session would move quickly, but with the second week drawing to a close with only one day of floor action, it could easily last three or four weeks. With this in mind, the cost of this special session is a serious concern. One quote from the governor’s office estimated that the special session costs $125,000 per week. This price tag is paid with taxpayer dollars in a tough budget year when we are stretching every dollar tightly.

In the past, it has been a common practice to call the Legislature back to the Capitol for a special session in September to coincide with the annual veto session. This saves the state the expense of having to have an unplanned session and instead rolls the cost into the planned veto session. This is a practice that would have been more fiscally responsible, and I believe it is the way that the governor should have proceeded. Many have said that quick action was necessary to ensure that incentives are made available to Ford, but with there being no guarantee from the company on the effect these incentives will have on the company’s decision, I again have to question the rush.

We will return to the Capitol next week to continue debate on both of these issues. With the incentive package stalled in a Senate committee, it is hard to say when the session will conclude and brings more light to the cost of this special session. I will keep you posted on how the session continues.

Nodler: Returning for a Special Session

The Legislature returned to the Capitol this week for a special session called by the governor. While not entirely uncommon, there have been only seven extraordinary sessions called over the past 15 years. Historically, these are occasions when the General Assembly did not address a timely issue during the regular session, ran out of time to debate a particular issue, or needed to correct language in a bill. A special session can last anywhere from a few days to several weeks, and there have been times when the Legislature has been called back for additional special sessions after not completing the work the governor has asked them to do.

One aspect of a special session that is very different from the regular session is that the Legislature is restricted by the “call” issued by the governor. Constitutionally, the General Assembly is only able to address issues specifically referenced in the proclamation issued by the governor. In fact, in 1922, legislation passed by the Legislature was ruled unconstitutional after it was decided the bill went outside of the scope of the governor’s call.

On June 18th, Gov. Nixon issued the call for a special session and asked us to address two issues. The first is an incentive package designed to give tax breaks to certain automotive manufacturers in the state. Specifically, the bill [HB2] addresses the Ford plant in Claycomo that employs nearly 4,000 workers. Ford is finalizing decisions about restructuring operations and locating production lines, and many are hoping that the company will chose Missouri if these tax breaks are available. However, Ford announced plans to stop making the Ford Escape in Missouri by the end of next year, and has given no indication that tax breaks would change their course. In fact, Ford did not even testify in favor of the bill when it was in committee. The incentive package does not come without a cost, so the governor has also asked us to consider a cost-saving plan that would reform the state’s pension system for new employees. The legislation [SB1] would change retirement eligibility for future state employees and require them to contribute 4 percent of their salary to the state retirement plan.

Both of these bills were first considered during the regular legislative session, and I voted “no” on both pieces of legislation. My opinion on these proposals has not changed, and I will not support either measure during the special session. Initially, many hoped the special session would move quickly, but more recent events have stalled the progress of the legislation. I will continue to keep you up-to-date on our continuing work in Jefferson City.

Ridgeway: Update: Saving Clay County Jobs and Protecting Teacher Retirement

Today, I joined my colleagues in the Senate and House in the Capitol to convene for a special session. We will focus on two measures: the Missouri Manufacturing Jobs Act [HB2] and pension reform [SB1]. I'd like to take a few minutes and go over the implications of each bill.

On the last day of the regular session, I led the effort that passed the Missouri Manufacturing Jobs Act out of the Senate. This measure would have provided tax incentives to certain companies that create or retain Missouri jobs. In particular, this legislation was aimed at our Ford automotive assembly plant in Claycomo, and at saving the jobs of the more than 3,500 people who work there. Unfortunately, time ran out before the House could reach a consensus on the bill.

It looked as though we had lost our opportunity to strengthen Missouri's manufacturing and automotive industries. Since the legislative session ended May 14^th, I have worked tirelessly with local community leaders and my Senate colleagues to build a case for Governor Nixon to call a special session.

For those who may not know, calling a special session is a unique power of the executive branch to call the Legislature back to the Capitol to revisit legislation that did not pass during the regular session.

Last week, we were given the news that the Governor called for the Legislature to convene for a special session to pass the job retention bill and offset the costs with a separate state employee pension reform measure. The session began today at noon, and is expected to run through July 1.

The bill we will work on in the coming days would allow qualified manufacturing facilities or suppliers that create or retain jobs and bring new product lines to Missouri to keep a portion of their employee withholding taxes. Ford has to invest in Missouri jobs right here in Clay County before they ever get any benefit. Further, the jobs must remain here or Ford will lose this incentive. In other words, Ford gets nothing unless jobs stay here or jobs expand here.

The time to act on the measure is now, as Ford is in the midst of deciding where to manufacture its new product lines. With other states and nations aggressively vying for these jobs, Missouri must step up and stand out as a prime location for Ford to produce next-generation vehicles. Losing out on a new product line at the Claycomo plant would be a terrible blow for the Clay County economy, as well as the entire state. You may be surprised to learn that Ford spends more than $1.5 billion annually in purchases from Missouri suppliers. To name just a couple local suppliers that would be immediately affected: Magna Seating in Excelsior Springs and Piston Automotive in Liberty. In fact, Ford purchases from suppliers in every county in Missouri except one.

To maintain Missouri's constitutional requirement to balance the state budget, we must also take steps to offset the costs of the job creation package. This is where pension reform factors into the special session, as lawmakers will also consider a bill that will make changes to the retirement plan for new state employees. Like the Missouri Manufacturing Jobs Act, we discussed a pension reform bill during the regular session as part of our "Rebooting Government" efforts, but it did not pass before session came to a close.

Pension reform entails creating a new retirement plan for anyone who becomes a state employee on or after January 1, 2011 (the changes would not affect current state employees). Members of this new system would be required to contribute 4 percent of their pay to the retirement system and work for the state for at least 10 years to gain ownership of their benefits. For regular retirement eligibility under the new plan, employees would need to reach age 67 and have at least 10 years of service, or reach age 55 with the sum of their age and service equaling at least 90.

I've had many concerned constituents contact my office wondering how the retirement plan changes would affect teachers and other school employees. Bottom line: they wouldn't. The Public School Retirement System (PSRS) and Public Education Employee Retirement System (PEERS) would continue as is and the legislation would not affect members of these systems in any way. Teachers can rest assured that I have no intention to do anything other than protect their retirement.

I'll provide you with an update at the close of the special session.