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| Capitol Report For the Month of April | Contact: (573) 751- 3074 | ||
Reviewing Missouri's Outdated Tax Code |
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| Budget Basics | |||
This month the Senate tackled the Fiscal Year 2016 state budget, which consists of 13 House Bills. Developing a fiscally responsible and balanced spending plan for Missouri is the most important and only constitutional requirement we have annually. The Legislature hears numerous ideas, proposals and plans to benefit our state, and is tasked with transforming these ideas into fiscal reality.
This year, we are working with a $26.1 billion spending plan, beginning July 1 and ending June 30, 2016. The process of constructing the state’s spending plan begins in January when the governor presents his recommendations in his State of the State Address. The House then takes these recommendations and drafts its own version of the budget. Once the House passes its version, it moves to the Senate Appropriations Committee where they make their recommendations before sending it to the Senate floor for debate and approval. The budget then moves back to the House for consideration. If the House does not pass the Senate’s recommendations, the budget will then go to a conference committee, which is comprised of members from both chambers, to iron out any remaining differences. We passed one of the most conservative state budgets yet this year. The governor has been left with a $75 million surplus in order to hopefully prevent the withholding of any funds. Missouri’s budget is funded by our hard-working taxpayers. We have a responsibility to the citizens of our state to spend within our means and treat their hard-earned money as though it was our own. After countless hours of committee meetings and floor debates, the Missouri General Assembly has passed the state’s Fiscal Year 2016 budget and sent it to the governor’s desk two weeks before the May 8 deadline. The governor has till May 8 to either sign the spending plan or veto line items. I feel this budget reflects the hard work my colleagues and myself have invested. It is my hope the executive branch will recognize that. |
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| Funding the Education of Missouri's Future | |||
Ensuring Missouri’s education programs are adequately funded is essential for the future of Missouri and its next generation. This year’s budget includes record-level funding for elementary and secondary education, as well as an increase for higher education. House Bills 2 and 3 appropriates money from Missouri’s budget for the State Board of Education, Department of Elementary and Secondary Education and the Department of Higher Education. Within these measures there was an $84.2 million increase for K-12 foundation formula schools - topping the governor's recommended $50 Million increase; a $12 million performance and equity funding increase for higher education institutions, representing a 1.9 percent increase; and a $5.5 million increase for community colleges. Unfortunately, we are far from the level of funding our education programs need, the increase won't go very far toward fully funding the formula, which is currently underfunded by $422 million. Education is one of the most important issues the Legislature addresses during session. It is vital we work towards full funding in order to provide every student with the resources and environment necessary to receive the best education possible. |
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| Budget Cuts for Department of Social Services Funds | |||
House Bill 10 and House Bill 11 generated much attention, leading to hours of debates and controversy over the Senate-proposed, lump summing of separate spending plans for the Departments of Social Services, Mental Health, and Health and Senior Services. The purpose behind this idea was to rein in the unchecked and unsustainable growth of our state’s health and welfare programs in an attempt to identify areas of savings. However, cutting department funding for these crucial programs, nearly $140 million of state general revenue in the Senate version, is not the answer. I was pleased to see $100 million restored to the budget for these departments in the conference committee, lump sums removed and the line items reinstated. However, even a $40 million cut to these departments is unsatisfactory and could drastically affect the lives of Missourians in a distressing way. These departments, for the last two years, have consecutively spent 99 percent of their general revenue. Given the increasing number of foster children, seniors, and Missourians with disabilities and mental illnesses, a cut to these departments would result in a detrimental loss of federal matching funds they currently receive, and a negative impact on thousands of Missourians who rely on these departments and the services they provide. Although I fully support making these departments more efficient by exercising fiscal restraint, there is just no room currently in these budgets for cuts due to their growing demand. The Department of Social Services has seen a rapidly increasing amount of children entering the system due to neglect and abuse, as well as Missouri footing a large portion of the bill for caseloads exceeding 893,000 in Medicaid recipients. The cuts in funding to these services will mostly impact the 90 percent of children, elderly, and blind and disabled Missourians. It is our responsibility to ensure these detrimental programs are fully funded. I was disappointed to see cuts made overall throughout these departments. |
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| Reviewing Missouri's Outdated Tax Code | |||
Legislation that will enact a comprehensive review of Missouri’s Tax Code was passed through both chambers this month and has been signed by the governor. Senator Bob Dixon, R-Springfield, and I sponsored an effort to provide Missourians with an adequate and comprehensive tax code by creating a study commission. Missouri’s Tax Code has not been reviewed in over 40 years. We cannot create an economically strong Missouri with an outdated tax system that is meant to finance our state. Under House Bill 384, the Study Commission will be responsible for conducting a detailed, multi-year assessment of Missouri’s tax system. It will be tasked with examining not only the tax code, but also identifying its strengths and weaknesses and providing recommendations to the executive and legislative branches on improvements to the code.
I was pleased to see both the Senate and the House come together in a bipartisan manner, with a combined recognition that Missourians deserve a tax code that is stronger, more efficient and generates continual economic growth. In addition to creating the Tax Study Commission, the Senate Substitute for House Bill 384 will also replace the current Office of Taxpayer Ombudsman within the Department of Revenue with an independent Office of Taxpayer Advocate in order to assist and defend taxpayers; amend state laws to reflect clarity of the rights of Missourians to the consistent application of state tax laws, rather than arbitrary or inconsistent action by the Department of Revenue; and provide eligible taxpayers with a one-time limited tax amnesty period between Sept. 1, 2015, and Nov. 30, 2015, to pay delinquent taxes without the assessment or payment of all penalties, additions to tax and interest, which occurred on or prior to Dec. 31, 2014. |
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| Fighting for the Equal Rights of All Missourians | |||
This month, Senate Concurrent Resolution 28, legislation I sponsor, was heard and passed out of the Rules, Joint Rules, Resolutions and Ethics Committee. This measure would urge a commitment to equal rights for people with cognitive disabilities to obtain technology and information access, and calls for implementation of such rights with deliberate speed. Currently, 28 million United States citizens suffer from some form of cognitive disability. The amount of individuals with little or no access to communication technologies is appalling. These diagnosed disabilities can range from Alzheimer and Down Syndrome to less severe cases, such as attention deficit disorder (ADD) and dyslexia, and can affect a wide variety of cognitive skills including memory, problem-solving skills, attention, linguistics, and comprehension with verbal, math and vision skills. The idea behind this resolution is to drive the focus and awareness of the issue that affects people with cognitive disabilities so that they may pursue a workable solution and that the technologies are available to them. Citizens with these forms of disorders are covered under federal laws within the Americans with Disabilities Act, the Developmental Disabilities Assistance and Bill of Rights Act. The time has come when we must strive to improve the lives of every single Missourian, and provide the tools needed to improve the quality of life for all those suffering from cognitive disorders. Francis Wright once said, “Equality is the soul of liberty: there is, in fact no liberty without it.” We have a responsibility to provide equal liberties and opportunities to all residents of our state. |
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| Staying Involved | |||
Every week, I do a podcast with Independence City Councilman Chris Whiting called “Dialogue with Missouri Sen. Paul LeVota.” The idea came from the late Congressman Jerry Litton. He held the same strong passion for staying involved with constituents that I have and talk about issues they are facing. Staying connected with the constituents I serve is of the utmost importance to me. I encourage all Missourians to listen to my podcast and contact me with any concerns you may have. If you would like to listen to my podcasts and find out what I am working on now, click here. As you can see, there is much work to be done by your elected officials in the upcoming year. It is an honor to serve as your state senator. Please feel free to contact me if you have any questions or comments at www.senate.mo.gov/levota or by contacting my Capitol office at (573) 751-3074. |
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Senator Paul LeVota |
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