Senate Approves State Budget for FY 2017
The Missouri General Assembly is now one step closer to finalizing the state’s Fiscal Year 2017 spending plan, as the Senate voted today to pass 12 of the 13 appropriations bills that comprise the state budget.
Crafting the state budget is never an easy task. It requires months of hard work and always involves making difficult decisions because, unlike the federal government, the state must balance its budget every year. This means actually practicing fiscal responsibility and not just talking about it. With this year’s $27.1 billion budget, we have managed to allocate a record level of funding for K-12 public education, address the unsustainable growth of Missouri’s Medicaid program and provide state employees with a 2 percent pay plan increase, effective July 1, 2016.
Providing Missouri’s youth with a high-quality education is always a top priority. For FY 2017, the Senate has appropriated an additional $70.4 million in foundation formula funding for the state’s K-12 public schools. Not only will a portion of this money go toward early childhood services, but we have also increased funding for early childhood special education and the Missouri Preschool Program by $21.2 million and $1 million, respectively.
Scholarship programs such as Access MO, A+ and Bright Flight are all set to receive increased funding this year, making higher education more affordable for numerous students throughout the state. And thanks to a budget increase of $55.8 million in performance and equity funding, Missouri higher education institutions will also see a boost in funding.
Despite having a very rocky year, an earlier move by the House to cut $7.6 million from the University of Missouri administration’s budget was reduced in the Senate to just $1 million, specifically from the amount allocated for the Columbia campus. The last thing we want to do is create a situation that could negatively impact students and the majority of dedicated university staff and faculty, who had nothing to do with the administration’s failures.
Missouri’s social welfare programs continue to consume more and more of our state budget, severely limiting what other worthwhile programs and projects we are able to fund. Unsurprisingly, this year has been no exception.
The FY 2017 budget is based on a projected general revenue growth of 4.1 percent, or about $367 million, but social services spending is slated to increase by $395 million. This means we would have to hand over every cent of new revenue growth and find an extra $28 million somewhere in the budget simply to keep up with Medicaid spending, a significant portion of which can be traced back to skyrocketing pharmaceutical costs.
The problem is twofold. First, for individuals with private health insurance, doctors have the flexibility to shop around for the best price. With Medicaid insurance, doctors do not have the freedom to prescribe less-expensive alternatives. Second, expensive drugs tailored to treat specific illnesses are driving up costs, while price tags on generic drugs have also been rising, as pharmaceutical companies, and even corporations, have been acquiring them.
Missourians have made it clear that they do not want any more of their taxpayer dollars to go to organizations that provide abortions. By defunding Planned Parenthood, the only abortion provider in the state, we have ensured this will no longer happen. That being said, women in Missouri will still have access to high-quality, affordable and even free health care at one of the federally qualified health centers, rural health care clinics or county health departments located in Missouri. In total, the FY 2017 budget seeks to reduce Medicaid spending by $55 million.
Twelve of the 13 appropriations bills are now headed to a conference committee, where members from both chambers will resolve any differences between the House’s and Senate’s versions. The Legislature has until 6 p.m., Friday, May 6, to deliver its finalized budget to the governor, but we once again plan to complete it sooner in order to overturn any of the governor’s line-item budget vetoes or decisions to withhold money from the state budget.
On Wednesday, I had the privilege of presenting the Neosho High School wrestling team with a resolution commemorating their recent state championship — the team’s fourth consecutive year to take home the top honor. Team members include Trenton Young, John Williams, Gannon Millard, Cody Rains, Kyler Ray, Joey Williams, Kyle Hostetter, Adrian Hitchcock and Jordan White. They are coached by Mr. Jeremy Phillips.
Finally, I was pleased to once again host the Joplin Area Chamber of Commerce’s Leadership Joplin Class at the Capitol for their annual Joplin Day. They hosted a “Sweet Treat Reception,” providing everyone at the Capitol with cupcakes, brownies, cookies and more. It was a fun event and a great way to showcase the City of Joplin.
Contact Me
I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-2173. You may write to me at Senator Ron Richard, Missouri Senate, State Capitol, 201 W. Capitol Ave., Rm. 326, Jefferson City, MO 65101; e-mail me at ron.richard@senate.mo.gov or visit me on the Web at www.senate.mo.gov/Richard.