Missouri Budget Committee Work Reaches Next Step
The Missouri House Budget Committee has spent the last few months working to prepare the Fiscal Year 2025 operating budget, and this week, the Budget Chair has revealed the House plans, kicking off the next stage of the process.
The FY 2025 Budget, which carries a price tag of roughly $49.9 billion, reflects a comprehensive understanding of the state’s financial landscape, coupled with a vision for sustainable growth and development. These bills aim to allocate the state’s resources efficiently and prioritize investments in several key sectors, such as education, infrastructure, health, public safety, and transportation.
The budget includes significant funding for education and workforce development, aimed at improving K-12 education, increasing teacher salaries, supporting higher education, offering workforce training, youth apprenticeships, and pre-kindergarten programs. These investments aim to strengthen Missouri’s education system and provide vital support to teachers and students statewide.
Infrastructure development is also a top priority, with large federal grants allocated for transportation projects like improving I-70 and establishing improvements to the I-44 corridor. The state is also investing heavily in broadband infrastructure to bridge the digital divide and improve internet access for all residents.
Some of the key highlights are as follows:
- $727.5 million investment for rebuilding I-44
- $100 million for rural and low volume roads
- More than $43 million for additional road improvement projects
- Over $16 million in port infrastructure projects
- $120.6 million increase to fully fund the foundation formula
- $14 million increase to fully fund school transportation
- $4 million to increase teacher pay to $40,000 per year
- 3.2 percent pay raise for state workers
- $1.5 billion toward broadband access
- $8 million for National Guard
- $2 million for pregnancy resource grants
In government, the budget proposes measures to support state employees, upgrade technology, regulate foreign ownership of agricultural land, and combat human trafficking and sexual exploitation. These initiatives demonstrate a comprehensive approach to governance, addressing immediate needs and long-term challenges across the state.
Missouri House Approves Land Bank Act to Aid Community Revitalization Efforts
This week, the Missouri House passed House Bill 2065, known as the “Land Bank Act,” aimed at revitalizing dilapidated properties to benefit communities. It would allow communities with populations of 1,500 or more to establish land banks, while smaller communities and unincorporated areas can be managed by counties. The bill includes measures to ensure impartiality and prevent speculation, such as prohibiting involvement of close relatives in transactions and imposing deadlines for property redevelopment.
Missouri House Passes Bill to Protect Military Signing Bonuses
We also signed off on a bill aiming to relieve the financial burden on Missouri’s military personnel by ensuring that a significant portion of their signing bonuses remains with them, rather than being surrendered to the government. This initiative, supported by the House, reflects the sentiment that those serving in the armed forces deserve support from their home state.
Missouri House Honors State’s Veterans with Passage of HB 1496
This week, we also signed off on a bill to further honor those who have served our country so faithfully. HB 1496 establishes the “Operation Enduring Freedom, Operation Freedom’s Sentinel, and Operation Allies Refuge” program, which will award medallions, medals, and certificates of appreciation to Missouri veterans. The bill language states that every veteran who honorably served, at any time, on active duty in the United States military from October 7, 2001 through August 30, 2021 is entitled to receive the aforementioned.
Veterans are entitled to this program, allowing for the following criteria:
- Is or was a legal resident of Missouri at the time of enter, discharge, his/her death, or served in a unit of the Missouri National Guard (regardless of state resident status)
- Honorably separated or discharged from service, still in active service (honorable) status, or was in such status at the time of his/her death.
Furthermore, the programs’ awards and recognitions are to be awarded regardless of whether an eligible veteran was under the age of 18 at time of enlistment, served within the United States or in a foreign country.
Valentine’s Law seeks to Improve Public Safety
The Missouri House of Representatives has perfected HB 1692, also known as “Valentine’s Law”, aimed at enhancing public safety by addressing concerns regarding fleeing suspects. Inspired by the sacrifice of fallen St. Louis County Police Detective Tony Valentine, the bill introduces measures to combat fleeing suspects, streamline penalties for resisting arrest, and establish stricter consequences for aggravated fleeing.
Safeguarding Election Integrity
This week, we also gave initial approval to HB 1413, a crucial piece of legislation aimed at ensuring the integrity of elections within the state. This bill would introduce a requirement for Missouri driver’s licenses or nondriver’s licenses issued to citizens of the United States, including naturalized citizens, to bear a distinguishing mark indicating their citizenship status on the front of the license.
HB 1413 not only seeks to safeguard the integrity of Missouri’s elections but also aims to restore public trust in the voting process. By clarifying citizenship status on identification documents, the legislation ensures that only eligible citizens participate in the electoral process. HB 1413 still awaits the chance to be third read on the House floor before moving on to the Senate.
Improving Missouri’s Electoral Process
The Missouri House of Representatives is taking a significant step towards improving election procedures with the initial adoption of HB 2140 with the hopes of bringing about several crucial changes to election administration in the state.
HB 2140 addresses various aspects of the electoral process, from updating filing dates for candidacy declarations to enhancing protections for election officials. Notification of Elections via Email: The bill allows the officer or agency responsible for calling an election to notify the election authority via email.
- Changes to Filing Dates for Declaration of Candidacy: The bill alters the opening and closing dates for filing a declaration of candidacy for offices in political subdivisions or special districts.
- In-Person Voting for Covered Voters: Covered voters, including those eligible to register to vote, interstate former residents, and new residents, may now vote at the office of the election authority on Election Day for presidential and vice presidential electors.
- Confidentiality of Lists of Absentee Voters with Permanent Disabilities: The bill specifies that lists of absentee voters with permanent disabilities shall be kept confidential and not be publicly displayed or shown to unauthorized persons.
- Signature Verification for Absentee Ballots: Election authorities are required to compare the signature on the absentee ballot envelope with the signature on the voter’s registration record. Inconsistent signatures will result in rejection of the ballot.
- Expansion of Provisional Ballots: Provisional ballots, previously available only at elections with federal or statewide candidates or measures, are now available at any public election.
- New Election Offenses and Penalties: Threatening or harassing election officials, attempting to pressure them to violate election laws, and doxxing them or their families are designated as election offenses, with varying degrees of severity.
- Extension of Electioneering Restrictions: Restrictions on electioneering activities, previously applicable only near polling locations on Election Day, are extended to locations where in-person absentee voting occurs during the absentee voting period. Circulating initiative and referendum petitions are also added to the list of prohibited activities near polling locations.
- Creation of Missouri Elections Sovereignty Act: This act reserves the right for the State of Missouri to determine the time, place, and manner of its state elections, asserting that federal laws regulating elections shall apply only to federal elections.
These reforms are necessary to streamline our election procedures, enhance transparency, and protect the rights of voters, all while contributing to the integrity and efficiency of our electoral process.
Phasing Out Corporate Income Tax
In an effort to further create a business-friendly economy, the Missouri House of Representatives has given initial approval to HB 2274, a significant piece of legislation that proposes a phased reduction and eventual elimination of the state’s corporate income tax.
The phased reduction schedule outlined in HB 2274 is as follows:
- Beginning January 1, 2025: The taxable income of corporations will be reduced to 3% of Missouri taxable income.
- Beginning January 1, 2026: The taxable income of corporations will be further reduced to 2% of Missouri taxable income.
- Beginning January 1, 2027: The taxable income of corporations will be reduced to 1% of Missouri taxable income.
- For all tax years beginning on or after January 1, 2028: There will be no tax imposed upon the Missouri taxable income of corporations.
Furthermore, the bill stipulates that once the corporate tax is fully phased out, no new corporate income tax credits shall be claimed.
Reforming the Earnings Tax
The Missouri House of Representatives has taken a significant step towards modernizing tax policies and supporting remote work environments with the initial approval of HB 1516. This bill introduces crucial reforms to the earnings tax system in the City of St. Louis, aimed at ensuring fairness, transparency, and clarity for taxpayers.
One key aspect of HB 1516 is the requirement for the City of St. Louis to provide quarterly reports on earnings tax receipts, enhancing transparency and accountability in tax administration. These reports will be accessible to the public and submitted to relevant state officials, underscoring the importance of fiscal responsibility and oversight.
Moreover, HB 1516 clarifies the taxation of remote work by specifying that the earnings tax applies only to work or services performed within the city limits. This adjustment reflects the evolving nature of work and supports individuals contributing to the city’s economy remotely, while ensuring tax obligations are tied to physical presence.
Additionally, HB 1516 establishes a robust refund process for taxpayers who believe they have been unfairly taxed for remote work, empowering them to seek reimbursement for taxes paid on work performed outside the city. Overall, the legislation enhances transparency, provides clarity on remote work taxation, and ensures fairness and efficiency in the tax system.
Fostering Economic Growth through Renewable Energy Expansion
HB 1746 encompasses a range of provisions aimed at enhancing utility infrastructure and affordability across the state.
The bill includes measures to support the expansion of renewable energy, streamline acquisition processes for small water utilities, and provide tax exemptions to incentivize investment in solar energy. It also addresses issues related to infrastructure rate adjustments, gas customer discounts, and contracting authority for the Public Service Commission. HB 1746 includes various provisions such as:
- Assessment of solar energy systems for property taxation at a 5% rate.
- Using depreciation tables for tangible personal property to assess certain real properties from 2025.
- Exempting utilities-related items from sales tax.
- Setting compensation rates for County and Sewer District Boards of Trustees.
- Streamlining the acquisition process for small water utilities.
- Specifying renewable energy standards for electric utilities.
- Allowing adjustments to water and sewer infrastructure rates.
- Modifying criteria for gas customer discounts.
- Granting contracting authority to the Public Service Commission for implementing utility tariff bonds.
- Changing the inspection frequency for water hydrants.
This is a significant step forward in ensuring that Missouri’s utilities remain competitive and accessible to all residents.
Glenn Koenen