Legislative Report
January 13, 2020
Federal Items:
Washington is overwhelmed by two critical topics: America’s relationship with Iran and the impeachment of President Donald Trump. (Ironically, on both topics, major news organizations repeatedly cite unnamed Republicans in Congress who don’t agree with the president’s actions yet are afraid to say so in public.)
Unfortunately, while all the attention is on Iran and impeachment, the systematic dismantling of the federal bureaucracy continues. In recent days, for example, the president announced major weakening of environmental rules – limiting study and review of ‘infrastructure projects,’ and, prioritizing jobs over impacts on air and water.
Congress and the president did cobble together a budget plan to keep the government open through this October. Military and civilian employees received, in most cases, a 3.1% pay raise. Otherwise, the budget deal retains spartan expenditure levels for domestic programs – except for $1.4 billion in border wall construction funds – while expanding spending on military hardware.
One surprise: the budget deal raised the minimum age for purchase of all tobacco products to 21 years.
While the administration touts the low unemployment rate, the same reports show average wages rising 1/10th of 1% in December and just 2.9% in the year – barely above the rate of inflation. Much of the increase is due to states (like Missouri) increasing the minimum wage.
The Trump bureaucracy continues to use regulation changes to override the will of Congress and existing law. This is happening with food stamp and Medicaid rules. It is feared that the Department of Labor will, after the election should Trump win, use regulations to enact national Right To Work rules.
State Items:
Let’s start with money…
At the end of December (the mid-point in the state’s Fiscal Year) Missouri’s net General Revenue was 5.2% ahead of 12/31/18 receipts. While that appears to mean the state is substantially ahead of its budget expectation of about a 2% increase in revenue, well, in reality the state is still looking for loose change in the sofa.
- Missouri owes Correction workers $130 million in back pay after losing a lawsuit.
- The state faces a significant bill for “supplemental” expenditures this Fiscal Year, including Medicaid charges.
- Part of the windfall comes from Corporate tax collections running almost 20% ahead of last year: that income will evaporate since on January 1st the top corporate dropped by more than a third from 6.25% to 4%.
- Members of both parties feel Missouri has way too little in its emergency reserve – a fund raided several times in the past decade.
Remember, the Republican super majority has, for three years, refused to pass necessary legislation to accept better than $100 million a year in already collected sales tax on internet sales.
In light of the tight fiscal reality, the Republican leadership in Jefferson City has ruled out any tax increases for any reason. And, if the state were to accept that approximately $100 million in internet sales tax funds available through the national Wayfair deal, numerous legislators are demanding that the state’s individual income tax rate be reduced so that there is no net gain in revenue.
The Fiscal Year 2021 budget (7/1/20 – 6/30/21), therefore, will again be very, very lean. It will be interesting to see if the governor and the Republican leadership can agree on a revenue estimate, and, if that number will be enough to meet all the state’s obligations – including that $130 million court judgement against the state won by Corrections officers.
(Almost certainly related to that, the governor ordered the Department of Corrections to stop collecting union dues from members of the bargaining unit. The state refused to give the union a new contract, letting the old one expire in September.)
The state Board of Education recently raised alarm about teacher salaries in Missouri. The official state minimum for teachers with a bachelor’s degree and a certificate remains $25,000 per year. The board recommends that the state raise the minimum pay to $32,000, and, give most teachers a $4,000 a year raise to be paid with state funds. (Missouri teachers rank 43rd in pay nationwide.)
This proposal is dead on arrival due to the $400 million annual price tag.
Rumors in the hallway point to the legislature being unable to fully fund the current, lower foundation formula out of anticipated revenues. It is possible that transportation dollars will again be cut, or, the formula may again be revised.
Meanwhile, charter schools have begun a charm campaign to get full per-student funding from the state.
The legislature’s first priority is “improving” CLEAN. The revised proposal would ask voters to ban all gifts to legislators (not just those over $5) and restore the ‘old’ system for setting district boundaries. (There is real fear among Republicans that fair districts would cost them dozens of seats in the House and at least a handful in the Senate.)
Republicans believe in local government control except when they don’t. Knowing that, the Mayor of St. Louis is asking the legislature to invalidate local laws requiring police and other municipal employees to live in the cities they serve. Since several GOP members have backed similar proposals in the past, it is quite possible the measure will become law this year.
The super majority also fears citizen petition drives. It’s expected that legislation to require 8% (or 10%) of voters in all eight Congressional Districts will be enacted, as well as requiring “super majorities” to enact a Constitution Amendment.
Among other bad ideas…
House Bill 1135 would reduce the time between court award and eviction from 10 days to five.
House Joint Resolution 84 would eliminate all state sales tax on all gun and ammunition purchases.
This session the 10 Democrat state senators will soon be reduced to eight: Kiki Curls and Jason Holsman are expected to be appointed to $109,000 a year administrative positions. The empty seats won’t be filled.
Per the latest census reports, the majority of Missouri counties have lost population in the last decade.
Governor Parson has added a new ‘perk’ for senior legislators and statewide officials with spaces under the Capitol: valet parking.
Glenn Koenen