Reviewing the Budget

This week, the Senate Appropriations Committee reviewed every line of Missouri’s Fiscal Year 2024 operating budget. During a series of committee hearings held throughout the week, we looked at 14 appropriations bills passed by the House of Representatives and made our own recommendations. As I’ve done each year I’ve served on this committee, I’ve looked for examples of wasteful spending and tried to find ways to keep Missouri’s ever-growing state budget in check. One area I’ve focused on in the past, and continued this year, is the number of state employees. In particular, I look at employee positions in the budget that have remained unfilled for two years or more and ask for those positions to be eliminated.

As the Senate completed the budget mark-up process we faced the choice of accepting the House’s budget numbers, deferring to the governor’s requests or advancing our own determinations. In most cases, the differences weren’t that great. When it came to what to do about Interstate 70, however, the House and Senate differed greatly. During his State of the State Address in January, the governor asked for $859 million to fund improvements along three congested stretches of I-70. Under the governor’s plan, portions of the interstate in Kansas City, Columbia and Wentzville would be widened to three lanes in each direction. The Senate Appropriations Committee preferred an alternative plan. The Senate recommended widening I-70 all the way from Kansas City to Wentzville. The $2.8 billion dollar plan would be funded in part from budget reserves, but would also require the state to issue bonds for about half the project. Personally, I’m skeptical of our state going into debt, but I also understand this plan would accelerate I-70 improvements within the 21st Senatorial District. Interstate 70 passes through Lafayette, Saline and Cooper counties, and improvements would bring economic activity and opportunities to our area. Interstate 70 clearly needs a lot of work. I believe the sooner we can get started, the better.

One budget change imposed by the Senate that I do not support was the removal of language forbidding the state from expending money for so-called DEI initiatives. Sometimes referred to as DEIB, the acronym stands for “Diversity, Equity, Inclusion” (the B adds the word “Belonging”) and refers to efforts to factor in race, gender and other identifying factors when making hiring decisions or setting policy. As the House developed the budget bills, an amendment was added to each bill prohibiting the state from spending money on DEI efforts. The Senate Appropriations Committee removed this language from our version of the budget. I support the House language and look forward to further discussions on this topic when the budget bills come up for a vote in the Senate chamber.

The final decision these issues and several others will be made in the remaining weeks of session as conference committees resolve the differences between the House budget and the Senate version. Also to be determined is which capital improvements and other one-time expenditures within the 21st Senatorial District will make it into the final budget. I’ll be sure to update you on significant appropriations for the district after the budget is finalized on May 5.

In other legislative activity this week, I presented Senate Bill 720 to the Economic Development and Tax Policy Committee. This legislation would allow Missouri employers to claim a tax credit for wages paid to certain employees. Among the “targeted employees” whose wages would qualify for the incentives are veterans, disabled persons who receive supplemental security income, ex-felons, SNAP benefit recipients and certain individuals participating in vocational rehab or summer youth programs. Also this week, the Senate Emerging Issues Committee heard testimony on my Senate Bill 697. This legislation modifies provisions related to the delivery of intoxicating liquor, and would allow retailers to deliver distilled spirits directly to consumers, much like wine can be shipped already.

During floor activity, the Senate passed House Bill 903, which prohibits purchase of Missouri farmland by foreign entities. This legislation is substantially similar to Senate Bill 334, which I filed. Agriculture is Missouri’s most important industry and I don’t want to see China gaining any more control over farming in our state. The legislation we approved this week would prevent China or any other foreign entity from purchasing any more farmland in Missouri. They’ll be allowed to keep their current holdings, but going forward, those properties could only be sold to Americans.

After this week, just three more weeks remain in the 2023 legislative session. We only have nine working days to finish the budget and all other legislative activity ends on May 12. Please be sure to read my Capitol Report online or in your local newspaper for the latest developments.

As always, I appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-4302. You may also email me at Denny.Hoskins@senate.mo.gov.