Wednesday afternoon Missouri’s accidental Governor gave his first State of The State address and presented his Fiscal Year 2020 budget.
Mike Parson enjoys a much better relationship with the legislature than Governor SEAL, yet, the Parson vision for Missouri guarantees as much failure as Eric Greitens’ proposals.
Let’s talk money…
In his speech and the budget, Parson stressed his fiscal conservatism:
Our true dedication should be to build and create wealth… NOT REDISTRIBUTE IT.
For the first time in more than a decade, the Governor’s budget does NOT plan to SPEND… EVERY… TAX … DOLLAR.
We have a business smart budget that saves nearly $120 million dollars to ensure we are prepared for any unexpected expenses.
— from Mike Parson’s first State of the State address
Put simply, the accidental administration expects to get $193 million in new General Revenue in FY20. Plans are to not spend $117 million, to give the state a ‘cushion’ – or, to my thinking, to effectively downgrade that new revenue estimate by 60%.
The $30 billion budget calls for giving elementary and high schools another $61 million (funding the revised, cheapened formula passed by the legislature the other year), with $10 million more in new school transportation money. While colleges only get the measly amount they’re receiving this year, the budget carves out $30 million for a 3% raise for state employees, and, spends about $100 million more on work force development items, including a $22 million fund so that middle-class adults can get technical school training to seek better paying jobs. The state will also issue $351 million in new bonds to fix bad bridges and roads.
Wait a minute…all that come to more than the expected new revenue of about $76 million. Where does the money come from?
Click on that budget and go to the Department of Social Services budget summary near the back. Find page 11 – 17, notes on the Fiscal Year 2020 Governor’s Recommendations for MO HealthNet (Medicaid). Go the last bullet point:
· ($392,409,201) core reduction from the Fiscal Year 2019 appropriation level, including ($102,463,427 ) general revenue.
Yes, Parson’s first budget finds money by dramatically reducing the funds available for health care for low-income Missourians. The administrations assumes that the great economy will cause tens of thousands of Missourians to no longer need Medicaid. (Cue the flying pigs.)
The additional money for workforce development could help thousands of people. Remember that before you can get a better paying job that an employer must have a better paying job waiting to be filled. All the data suggests that too many of the unfilled jobs in this state do not pay enough to lift a family into the middle class.
What does the new budget do to persuade employers with great jobs to come to Missouri? Not much.
And, remember as well that the accidental governor wants Missouri to become a Right To Work state, a change known to reduce wage growth!
During his speech the former sheriff of Polk County noted than “almost 40% of Missourians live in rural areas.” True. Also correct: more than 60% of Missourians live in urban and suburban areas which supply the revenue needed to operate the state.
Economic progress on the scale Missouri needs happens primarily in the St. Louis and Kansas City areas. A plant making low-cost windows in Eldon (touted by the governor) doesn’t move the needle unless you own the Quickie Mart across the street.
Governor
Mike Parson cheerfully plans on leading Missouri further into decline,
touting conservative, rural values all the way to the end.
Glenn Koenen