Despite Governor’s call, House postpones utility modernization debate to another day

The state House has worked to answer Governor Eric Greitens’ (R) call to an extraordinary session on one of the two issues he set before it, but not the other.

Representative Jay Barnes (photo; Tim Bommel, Missouri House Communications)
Representative Jay Barnes (photo; Tim Bommel, Missouri House Communications)

It sent to the Senate on Wednesday a bill that would let the Public Service Commission (PSC) consider lower rates for new facilities that use more than 50 megawatts of electricity per month.  It was prompted by two companies – one looking to restart an aluminum smelter near Marston; the other saying it will build a new steel mill at New Madrid.  Both are in Southeast Missouri where lawmakers agreed jobs are needed badly.

Earlier story:  House uses special session to pass bill aiming to bring jobs to Bootheel

The House did not include language that would give utilities more leeway to set new rates ahead of new infrastructure investments.  That was part of Greitens’ call, but the issue is considered controversial and lawmakers in the House thought including it would keep the rest of the legislation from passing in the Senate.

Some lawmakers, however, said the issue is one that needs to be discussed.

“I think our state needs to have a conversation about energy policy for the next 40 years and not just the next four months,” said Representative Jay Barnes (R-Jefferson City), who brought the infrastructure-related language to the floor in order to have legislators discuss it before he withdrew it.

Barnes said the language that was originally in House Bill 1 was too broad, and instead supports legislation that would allow the PSC to consider increasing rates ahead of improvements to power grids and other infrastructure in order to pay for those improvements.

“At least for one utility in this state there are four coal plants that are on average at least 50 years old.  Some of those need retrofitting and there are those in American society who would want those closed down altogether,” said Barnes.  “Half of the substations for the utility company that services my area are over 40 years old … much of the electrical infrastructure underground in St. Louis that supports our state’s biggest city is 80 to 100 years old.  As a state we are living on the investments of our grandparents … there are tough decisions to be made about how to modernize that infrastructure.”

Critics like St. Louis Democrat Tracy McCreery say what Barnes is discussing would give a “monopoly utility” the chance to get “extra money.”

“That’s what grid modernization is.  It’s the ability for them to get money ahead of time and faster in order to do things that I think they should be doing already,” said McCreery.

Representative Tracy McCreery (photo; Tim Bommel, Missouri House Communications)
Representative Tracy McCreery (photo; Tim Bommel, Missouri House Communications)

Barnes said he hopes the legislature will revisit the discussion of grid modernization incentives.  House Speaker Todd Richardson (R-Poplar Bluff) agrees.

“I think the State of Missouri needs to have a longer-term conversation about energy policy and what that needs to look like.  The status quo with energy policy right now isn’t working particularly well,” said Richardson.  “Our ratepayers in Missouri are seeing significant increases almost every 12 to 18 months.”

Richardson said the House in this week’s special session was focused on passing the other issue called for by the governor so those two companies would not pull out of plans to come to Missouri.  Barnes noted grid modernization legislation in the past has been “stymied” in the Senate.

Legislature called back for extraordinary session to consider Southeast Missouri jobs issue

State lawmakers will return to Jefferson City next week for a special legislative session.  Governor Eric Greitens (R) is calling them back to address an economic development issue in Southeast Missouri.

Representative Don Rone (at microphone) (photo; Tim Bommel, Missouri House Communications)
Representative Don Rone (at microphone) (photo; Tim Bommel, Missouri House Communications)

The legislature did not pass in its session that ended last week language that backers say could allow one company to proceed with plans to reopen the Noranda aluminum smelter at Marston; and another company to build a new steel mill at New Madrid, both in Southeast Missouri.

Both companies hope for lower utility rates that would allow those facilities to be profitable.  To consider lower rates the Public Service Commission (PSC) says it needs the legislature’s approval.

Representative Don Rone (R-Portageville) attached that language to several bills in the final days of the session, but it did not become law.  He said people in that region are in desperate need of jobs, especially after Noranda closed last year eliminating nearly 900 jobs.  He said these two projects could create more than 500 new jobs.

Greitens wants legislators to come back and focus on that one issue.

“I cannot thank the governor enough for the people of Southeast Missouri – all of Southeast Missouri,” said Rone.  “I can’t tell you what it means to these people here to have hope, and the governor saw fit to give us hope by calling a special.”

The House voted for Rone’s language 148-2, and its support in that chamber is expected to remain high, but at least one senator who Rone said blocked it in that chamber – Senator Doug Libla (R-Poplar Bluff) – remains opposed to the proposal.

Rone said he believes the bill can get through both chambers and to Greitens.

“[Senator Libla] can keep his position.  We’ve never asked – in the many conversations I’ve had with him and his people – we’ve never asked him to change his vote.  We’ve always asked him just to allow it to come to the floor and let the people in the Senate vote,” said Rone.  “All we’re wanting to do is let democracy work, let the 34 senators take vote their conscience, and see where it takes us.”

Rone said the entities behind the two facilities are expected to decide soon whether to give up on progressing with their plans for those two sites.  He said if the legislature can quickly pass his bill he is confident those companies will postpone their decisions until they can meet with the PSC.

“I would think that [Governor Greitens] was well aware of the timeline and how critical it is,” said Rone.

The call for the special session comes one week after Rone called attention to the issue in a passionate floor speech in which he called out Libla and two other senators, saying they were, “heartless,” “selfish,” and “egotistical,” in rebuffing his proposal.

The House and Senate will begin the extraordinary session at 4 p.m. Monday.

 

House votes to send project labor agreement ban to Governor Greitens

Missouri legislative Republicans’ labor reform agenda took another step Thursday with the final passage of a bill barring project labor agreements (PLAs) for public projects.

Representative Rob Vescovo began proposing a ban on project labor agreements for public projects when he was first elected to the House for the 2015 session. (photo; Tim Bommel, Missouri House Communications)
Representative Rob Vescovo began proposing a ban on project labor agreements for public projects when he was first elected to the House for the 2015 session. (photo; Tim Bommel, Missouri House Communications)

The House voted to send Senate Bill 182 to Governor Eric Greitens (R), who had called for the elimination of PLAs.

Under a PLA, a governing body requires non-union contractors to pay union dues to workers on a project.  SB 182 would prohibit that, and would bar local governments from giving preferential treatment to union contractors.  Governing bodies that violate the bill’s provisions would lose state funding and tax credits for two years.

Republicans said PLAs are unfair to non-union workers and contractors.  Arnold representative Rob Vescovo (R) said PLAs discriminate against the largest segment of Missouri’s workforce.

“86-percent of that workforce will not be able to do work on those job sites or bid on those job sites unless they sign a project labor agreement,” said Vescovo.

Lake St. Louis Republican Justin Hill said PLAs amount to extortion.

“Those non-union contractors are forced to pay union dues into benefits that they will never receive,” said Hill.

Representative Bob Burns said project labor agreements are good tools for local governments, which the legislature should not move to take away. (photo; Tim Bommel, Missouri House Communications)
Representative Bob Burns said project labor agreements are good tools for local governments, which the legislature should not move to take away. (photo; Tim Bommel, Missouri House Communications)

Democrats called the legislation an attack on unions.  Representative Bob Burns (D-St. Louis) said PLAs protect local governments by ensuring that they will have work done that is quality and completed on time by skilled workers.  He said his time on a board of education in Affton provided evidence of that.

“A lot of things that should have lasted 25, 30 years were failing after 5 years or 2 years, and these contractors were nowhere to be found,” said Burns.  “The district wouldn’t have to spend more funds to get something done and get it fixed if it would’ve been done properly in the first place.”

SB 182 was carried in the House by Vescovo, who began introducing such legislation as a freshman in 2015.  It is expected Greitens will sign the bill into law.

The House’s passage of SB 182 follows other labor reforms it has proposed, including the passage of a right-to-work bill signed into law by Greitens earlier this year.  That legislation prevents the collection of union dues or fees from workers as a condition of employment.

Earlier story:  House Republicans continue labor reform efforts; address project labor agreements

Missouri House to finalize its budget proposal this week

Legislators often say it is the one thing the General Assembly must do even if it does nothing else:  pass a balanced state budget.  This week the state House will take the latest step toward that end, when its members debate a budget proposal to be sent to the Senate for its consideration.

The Missouri House Budget Committee worked Tuesday to finalize the proposal it would send to the full chamber for debate that will happen this week.  (photo; Tim Bommel, Missouri House Communications)
The Missouri House Budget Committee worked Tuesday to finalize the proposal it would send to the full chamber for debate that will happen this week. (photo; Tim Bommel, Missouri House Communications)

Representative Scott Fitzpatrick’s (R-Shell Knob) top priority when he was named House Budget Committee Chairman was to fully fund the formula for K-12 school funding.  This budget plan would do that.

“That’s going to continue to be my number one priority in the budget, and we did it without cutting the transportation program in K-12 that the governor recommended reducing,” said Fitzpatrick.

The bills would also not appropriate all of the money projected to be available, so that some will be left for expenses that are unforeseen or are greater than projected.  In recent years, the legislature and governor had to take care of such expenses in a mid-fiscal year, or supplemental, budget.

“We agreed with the governor and the Senate that no less than $100-million should be set aside for a possible supplemental request,” said Fitzpatrick.  “We also set another $100-million almost that is made up of Medicaid increases that the department requested that we did not fund, and we said, ‘Listen, we need you to do your best to hold down these expenses in Medicaid.”

The budget proposal would also maintain at their current level in-home Medicaid services to seniors and people with disabilities, assuming that a House bill to end a tax break for low-income seniors and disabled becomes law.  The money that bill would make available would go to the in-home care program.

House Democrats don’t like basing the support of the in-home care program on eliminating that tax break.  The lead Democrat on the House Budget Committee, Michael Butler, said his party came up with other options, and one of those would be to dip into that money set in reserve.

“Secondly, when there is over $50-million left in different state funds across the state, we think there are other ways to pay for it,” said Butler.

Representative Deb Lavender (right) proposed taking $6.85-million from a fund in the Attorney General's office and giving it to the state's public defenders.  (photo; Tim Bommel, Missouri House Communications)
Representative Deb Lavender (right) proposed taking $6.85-million from a fund in the Attorney General’s office and giving it to the state’s public defenders. (photo; Tim Bommel, Missouri House Communications)

Democrats also want to preserve a change made to the budget proposal last week, when one of its members proposed shifting $6.85-million from the Attorney General’s Office to the state’s Public Defender System.  The Attorney General’s Office didn’t have representative in the hearing, and the budget committee approved the change.

The Public Defender’s Office wants a boost in state funding to hire more counsel, and to deal with what it’s told lawmakers is an “overload” of cases.   “We, along with quite a few Republicans, believe the public defender’s office is in dire need of those funds,” said Butler.

Fitzpatrick said there might be a statutory issue regarding that money beings shifted out of the Attorney General’s office.

“There’s still a long way to go for the budget and I think it’s entirely possible that that will be changed back,” said Fitzpatrick.

Butler said another priority for his party is to make sure Lincoln University gets enough money to maintain its land grant status.  He said the federal government has said Lincoln must have more matching funds in order to keep that status.

“We need to try to get as close to $6.1-million as possible.  We are putting up $2.5-million this year and we’re very hopeful that is enough equity to the federal government,” said Butler.  “Lincoln has for decades seen a disparity in funding.  It has never met the land grant match.  It has never been given proper funding.”

Butler said there is support from both parties for making sure Lincoln University keeps its land grant status.

The budget proposal would also fund a Medicaid asset limit increase, add money to the state’s senior centers, and restore some – but not all – cuts to higher education.

House passage would be just the latest stop for a Fiscal Year 2018 state budget.  From the House it would go to the Senate, which will likely propose changes to the House’s plan.  Once the two chambers agree on a budget, their proposal will go to Governor Greitens for his action.

 

House budget chairman on search for savings in FY ’18 budget; wariness about tobacco settlement money

The House took another step in drafting a budget for the fiscal year that begins July 1, when the bills that make up that spending plan were filed.

House Budget Committee Chairman Scott Fitzpatrick (photo; Tim Bommel, Missouri House Communications)
House Budget Committee Chairman Scott Fitzpatrick (photo; Tim Bommel, Missouri House Communications)

Meanwhile, House appropriations committees continue taking testimony from state agencies and elected officials about how much they want or hope to receive in state money if Fiscal Year ’18.

House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob) said those committees are looking for places the state can save money to offset a $500-million shortfall.

He said lawmakers are looking at renegotiating managed care contracts to reschedule some expenses as the state switches to managed care in FY 18, and examining the funding request from the state employee retirement system to make sure it isn’t unnecessarily great.

Governor Eric Greitens (R) last week recommended changes to his own budget proposal that would see greater spending on public school transportation and on in-home services for low-income residents with disabilities.

Fitzpatrick said the problem is Greitens proposes funding those restorations with money from Missouri’s settlement with tobacco companies.  Greitens based his latest proposal on a Missouri Supreme Court ruling that would let Missouri get $52-million in settlement money.

“I think we will see that money but I think there’s a potential for another negative decision on the tobacco lawsuit front for the next year that is basically a new lawsuit that could offset any gains we’re making from that,” said Fitzpatrick.  “I’m not 100-percent convinced that we’re going to spend the extra money that the governor recommended.  I think if we can get comfortable with the likelihood that we’re actually going to have it available in the fiscal year that we may go ahead and spend that, but we’ll look at the best way to spend it.”

The appropriations committees will begin this week preparing their recommendations for spending in the areas they respectively deal with.  In two weeks the main budget committee will prepare its spending proposal with Fitzpatrick’s input, creating a spending plan that will be debated by the full House.

Recent news articles have questioned whether the legislature, in this tight budget year, will fund Missouri’s new voter photo ID law, approved by voters in November.  Fitzpatrick said it would be supported.

“We’re not going to play games with that,” said Fitzpatrick.  “We’ve talked with Secretary of State [John] Ashcroft multiple times about it, and we’re going to make sure that he has what he feels is necessary, whether it be from general revenue or a federal fund that the Secretary of State has access to, we’re going to make sure that he has ample authority to implement that law the way that the statute requires.”

The bills Fitzpatrick filed last week don’t represent his budget recommendation, but that of Governor Greitens.  He said he took that action with a mind for history.

“It is basically the only historical record of a governor’s budget.  If you go back and try to find governor’s budgets from previous years, if the budget chairman does not file the governor’s recommendation then that is not documented … there is no permanent record of that,” said Fitzpatrick.  “The bills themselves are the exact everything that the governor sent.  There are even typos in there that staff found and I said, ‘Nope, leave them the same.’”

New prison system director talks to House committee about harassment, more

The “primary focus” for the incoming Director of the Department of Corrections is dealing with reports of harassment and retaliation within the department.  That’s what Ann Precythe said after talking to a House subcommittee created to review those reports.

Missouri's Department of Corrections Director-designee Ann Precythe talks to the House Subcommittee on Corrections Workforce Environment and Conduct. (photo; Tim Bommel, Missouri House Communications)
Missouri’s Department of Corrections Director-designee Ann Precythe talks to the House Subcommittee on Corrections Workforce Environment and Conduct. (photo; Tim Bommel, Missouri House Communications)

A news article citing court documents said some Corrections employees had been the victims of harassment by other employees.  Some were retaliated against after reporting incidents, and some cases led to lawsuits that have resulted in millions of dollars of legal settlements by the state, with more pending.

Precythe spoke to the House Subcommittee on Corrections Workforce Environment and Conduct about her plans for the department.  After her presentation she told reporters there is a “phenomenal framework” in place for dealing with custody and control and prison operations.

“My focus is really getting to staff treatment, employee morale; the things that make a difference that don’t cost the taxpayers a dime to work on.  Those are the things that I am focusing on right now.  That’s my number one priority,” said Precythe.  “It’s a new day in Corrections.  It’s a new administration and we’re getting ready to move forward with a new culture for corrections.”

Precythe previously served as the Director of Community Corrections in North Carolina before being appointed in Missouri by Governor Eric Greitens (R).  She told the committee North Carolina’s corrections system had a “zero tolerance” policy regarding harassment.

“In North Carolina we have the words, ‘zero tolerance,’ written in our policy and they were capitalized and they were bold,” said Precythe.  “I think that’s important that I establish a zero tolerance for reporting when sexual harassment, workplace harassment, or retaliation has occurred, and then I think it’s important to have a zero tolerance for responding to those complaints when they’re alleged.”

“The zero tolerance does not necessarily mean everybody gets put on administrative leave or subsequently gets fired, but it means that we’re going to take all complaints seriously and we’re going to look into them,” Precythe told lawmakers.

Precythe said she is still gathering information about what has happened in the department.  She told the committee, “I don’t have the answers for certainty about what’s not working or why, but I do know what can work and how to implement it.”

She said that means focusing on holding staff accountable, training and education, and making sure staff understands what professionalism in the workplace looks like.

Missouri’s entry-level corrections officers are the lowest paid in the nation.  Some have asked whether that could contribute to harassment issues, by lessening morale and making the keeping of the best employees more difficult.

Precythe said she thinks the pay should be considered, “but I don’t believe that that’s the driving force.  I think that folks want to be valued.  They want to be taken seriously.  They want to be appreciated.  They want to be recognized.  They want to be acknowledged for the good things … this is about a good working environment for all employees regardless of the business that you’re in, and that’s what I’m bringing back to Missouri.”

Representative Jim Hansen chairs the House Subcommittee on Corrections Workforce Environment and Conduct. (photo; Tim Bommel, Missouri House Communications)
Representative Jim Hansen chairs the House Subcommittee on Corrections Workforce Environment and Conduct. (photo; Tim Bommel, Missouri House Communications)

The subcommittee’s chairman, Representative Jim Hansen (R-Frankford), said he was pleased with Precythe’s plans for a zero tolerance policy, and to focus on employee promotion and morale.

“She understands it.  She knows what the issues are and she’s already working on that behind the scenes, so yeah I’m satisfied with where she’s at,” said Hansen.

As for the committee’s work, he said he it has a long way to go.

“We’ve got employees and staff that we want to interview.  We want to get as much information as we can to help make the changes that we need to make,” said Hansen.

He said the subcommittee’s next hearing could be as early as next week.

Missouri House votes to send right-to-work to Gov. Greitens

The Missouri House has sent Governor Eric Greitens a bill that would make Missouri the 28th right-to-work state.

Representative Holly Rehder also sponsored the House's version of a right-to-work bill, HB 91, which was sent to the Senate in January. (photo; Tim Bommel, Missouri House Communications)
Representative Holly Rehder also sponsored the House’s version of a right-to-work bill, HB 91, which was sent to the Senate in January. (photo; Tim Bommel, Missouri House Communications)

Senate Bill 19 would bar union membership or the paying of union dues from being a condition of employment.  It would make violators of that prohibition guilty of a Class “C” misdemeanor and would require county prosecutors and the state Attorney General to investigate complaints or violations.

It also includes a “grandfather” clause, which would allow existing contracts between unions and companies to remain in place until they are changed or expire.

The House voted 100-59 to send the bill to the governor, who, it is anticipated, will sign it into law.

Republicans say right-to-work is an issue of worker freedom that will allow workers to decide how their money is used and who will represent them.  They say some companies have not come to Missouri because it is not a right-to-work state, and say the bill’s passage will lead to more jobs and perhaps an increase in union membership.

Sikeston Republican Holly Rehder carried SB 19 in the House.  She said it felt great and humbling to be carrying the bill that appears set to finally make law a long-time Republican priority.

“It’s a huge win for Missouri,” said Rehder.  “The states that have passed it in the last few years have shown unemployment drop considerably, so I think this is a big deal for all Missouri working families.  I’m very excited to get it to the governor’s desk.  I think that it’s not a silver bullet but it’s definitely a tool in our tool box now, and we can move on to some other things to make Missouri even more business friendly.”

Democrats say right-to-work states have lower wages and a lower quality of life, and say the passage of SB 19 will not help the state’s economy.

Representative Doug Beck still wants to see right-to-work go to a vote of the people. (photo; Tim Bommel, Missouri House Communications)
Representative Doug Beck still wants to see right-to-work go to a vote of the people. (photo; Tim Bommel, Missouri House Communications)

St. Louis Democrat and member of a local pipefitters union, Doug Beck, said it is a “sad day” for Missouri.

“Every conservative estimate I have seen shows right-to-work will cost our state at least $160-million in lost revenue due to lower wages.  Lower wages equal lower income taxes collected.  Lower wages equal less money spent stimulating the economy,” said Beck.  “After years of lower wages many of these families will turn to state assistance as their only option to survive.”

Democrats, as they did when the House debated its right-to-work bill (HB 91), proposed sending the issue to Missouri voters rather than the governor.  That was rejected on a Republican-led vote.  Democrats said the issue is one that should be decided by the people.  Republicans said they proposed sending right-to-work to voters two years ago and Democrats opposed it then, and accused Democrats of favoring a vote now only because the governor is unlikely to veto the bill.

Proposals were also rejected that would have put a sunset on the bill, making it no longer law after five years unless renewed by the legislature; and that would have made it not apply to existing union-company contracts until their renewal, as opposed to when they are changed.

Missouri House asked to consider multiple ethics reforms

House lawmakers continue to lay out a slate of proposed ethics reforms they believe would help restore the public’s trust in Missouri’s elected officials.

Representative Kip Kendrick (photo; Tim Bommel, Missouri House Communications)
Representative Kip Kendrick (photo; Tim Bommel, Missouri House Communications)

Columbia Democrat Kip Kendrick presented to the House Committee on General Laws, House Bill 217, an omnibus bill encompassing a series of measures offered by other members of his caucus.  He said each proposed reform is based on promises made by candidates during the recent campaign cycle – promises that he says were endorsed by voters based on which candidates made those promises and won.

“There is the appearance, obviously, of corruption. There’s a lack of trust – I believe that we all see it – a lack of trust that the people have in how the processes unfold here at the State Capitol, at the federal level as well,” said Kendrick.  “The bill before you, make a strong argument that it’s an aggressive and comprehensive anti-corruption, reform bill.”

Two key provisions would build on work already done by the House toward ethics reform that House Democrats say they want to take farther than earlier proposals.  One aims to ban gifts and monetary donations from lobbyists to elected officials.

Kirkwood Democrat Deb Lavender is carrying the Democrats’ version of a proposed gift ban, House Bill 212.  She told lawmakers her bill would be tougher than House Bill 60, passed two weeks ago by the House.

Kirkwood Democrat Deb Lavender is carrying the Democrats’ version of a proposed gift ban, House Bill 212.  She told lawmakers under House Bill 60, passed two weeks ago by the House, organizations could exploit a provision that lets them provide meals for legislators at events as long as all members of the General Assembly and all state lawmakers are invited.

      “I have been invited to a Bar Association Dinner in Kansas City.  I’ve now been invited to one in Jefferson City and I’ve been invited to one in St. Louis.  A year ago I was invited to the one in St. Louis,” said Lavender.  “So as the entire General Assembly has now been invited to all three events, and perhaps more, here is how the Missouri Bar Association is already working around a bill that has passed on our floor; how they can still take you out and buy a meal and report it to the General Assembly so there’s no individual accountability.”

The other provision proposes extending the prohibition on elected or appointed officials or legislators becoming lobbyists from six months to five years after their term has ended, and would apply that to certain legislative staff.  It is also found in House Bill 213, sponsored by Representative Joe Adams (D-University City).

“This is what [Governor Eric Greitens] suggested in his campaign as he was running for the office, head of the state, so basically using his words,” said Adams.

Other provisions in HB 217 propose prohibiting any candidates’ committees from transferring their funds to their candidate’s family members; requiring former candidates to dissolve their candidate committees; and letting the Missouri Ethics Commission prosecute criminal cases and initiate civil cases if the state Attorney General declines to pursue either regarding an alleged ethics violation.  Those provisions are found in House Bill 214 (Tracy McCreery), House Bill 215 (Mark Ellebracht), House Bill 216 (Crystal Quade), respectively.

Representative Shamed Dogan (photo; Tim Bommel, Missouri House Communications)
Representative Shamed Dogan (photo; Tim Bommel, Missouri House Communications)

Republicans have their own proposals to further reform Missouri ethics laws.  Ballwin Representative Shamed Dogan wants to ban gifts from lobbyists to local government officials.

Dogan said such officials are held to a much lower standard than legislators.

“I was an alderman in my city before being elected to this position, and we had a trash contract that was before our city.  I subsequently found out, after we’d passed this trash contract on a no-bid basis, that our City Administrator had been lobbied by that trash company by taking him to game seven of the World Series in 2011,” said Dogan of his proposal, House Bill 229.

Republican Tom Hurst (Meta) presented House Bill 150, which would exempt individuals not paid to lobby from having to register or report as a lobbyist.

Hurst said he wants members of the public to know that they can talk to elected officials about issues that concern them without having to file as a lobbyist, and without fear of being prosecuted for failing to file.

“The gray area tends to make people that I talk to wary about what they think happens in this Capitol and what they can do, legally, without getting in any trouble,” said Hurst.

Republican Jean Evans said the bill could raise more issues.

“So what’s to keep someone who’s not registered as a lobbyist, who’s not paid, from, say, giving lavish gifts to a legislator that’s not being reported in order to affect some sort of change in legislation or in order to, say, perhaps influence a decision on procurement whether it’s at the state or local level?” asked Evans.

The committee has not voted on any of those bills.

House Speaker Todd Richardson (R-Poplar Bluff) and other legislative leaders have said ethics reforms would continue to be a priority in the 2017 session.

Leading Democrat on House Budget Committee looks ahead to challenging FY ’18 process

State House members are doing groundwork on the Fiscal Year 2018 budget, ahead of the release by Governor Eric Greitens of his proposed spending plan.  Mike Lear sat down with the ranking Democrat on the House Budget Committee, Michael Butler (St. Louis), to talk about his thoughts in facing what lawmakers say will be a difficult budget year.

Audio:  Mike Lear interviews Rep. Michael Butler

Representative Michael Butler is the ranking Democrat on the House Budget Committee.  (photo; Tim Bommel, Missouri House Communications)
Representative Michael Butler is the ranking Democrat on the House Budget Committee. (photo; Tim Bommel, Missouri House Communications)

ML:   Let’s talk about the causes in a moment because I do want to get to that, but let’s start with where we are in the budget, and I think everybody agrees that there is a hole, that there is a – I don’t know if I’ve heard the word “crisis” yet – but it’s certainly a dire budget year.  How do you deal with the situation that we’re in this year?

MB:  “I think it’s first important to note how we got here.  How we got to this budget hole and what I could call a budget ‘crisis’ is we are currently about $450-million dollars that we have to cut out of the budget for this year, and that is not because of the past governor and the past administration.  It’s because of the legislature who controls the budget process.  We’ve been hearing that the past administration is to blame but we have to include Republican majorities in both the House and Senate that actually create the budget.

“They have cut revenue for years and revenue is down.  Expenses are barely up – are generally up for how they normally are, but because we aren’t taking in as much revenue because of plenty of tax cuts for the rich, and for businesses, and for specific special interests, are the reason why we don’t have enough money to provide services to people.

“We want to be a part of the solution.  We’re going to help, but we’re in the minority.  We didn’t cause the problem.  We’ve spoken against the problem in many cases, and we can’t take the blame for something we did not do.”

ML:  Since we’re talking about cause, we are going to hear a lot about Medicaid and the need to reform Medicaid, and that a lot of the costs [to the budget] are driven by Medicaid.  What is the answer there?  Is it a question of Medicaid reform?

MB:  “Well, with a brand new governor who is just learning the budget and is late on giving us his idea of the budget – much later than any other governor in recent history – we have to remind him and other folks around the state how we got here. Part of how we got here, especially with Medicaid; when many members of the majority, the Republican party and the governor says that Medicaid spending is out of control, they made it out of control.  They have cut Medicaid spending so much that it creates a system for poor people, Medicaid recipients, that can’t get to good care.  They can’t get to their primary care doctors, which cost the system much less.

“In fact when primary care doctors have a choice to decide whether to take these patients, Medicaid patients, when they decide not to those folks are forced to take emergency room care which is much, much, much more expensive.  And as we cut more – if we just say we’re going to cut more – we’re going to create more of that system.  We’re going to create where folks either can’t get care, or can’t get care that the state can afford, and in the end folks are going to suffer, and many of the folks in poor rural areas that they represent.

“On the Democratic side we’re going to be sure we’re continuing to take care of people, putting people first and not special interests, and put people first, not just numbers on a budget.  We believe that we should continue to make sure that folks can get good care and they can take care of their children as well, as Medicaid recipients.”

Earlier stories:  

House Budget Committee warned of impending fiscal challenges

House Budget Chairman not optimistic going into FY ’18 budget process 

ML:  We have a new administration in Washington D.C.  Is now the time to pursue Medicaid expansion if this state is going to do it, when we could be seeing changes or a repeal of Obamacare?

MB:  “Now is the time.  The time was three years ago when the federal government was going to reimburse us at 100-percent.  Now is still the time because we believe that President Obama, and the facts show that President Obama had it right.

“In states where Medicaid was expanded Obamacare premium healthcare costs have decreased. We’ve seen premium healthcare costs once again decrease in states that expanded Medicaid.  We’ve heard the governor and the new federal administration, new president, say that healthcare premiums are increasing, but they’re only increasing in states that didn’t expand Medicaid.

“So, we’re going to talk a little bit more about expansion of Medicaid and we know that we have facts on our side, and we have statistics on our side that show that if we expand Medicaid not only will poor folks and working class folks benefit, so will people that have premium healthcare.”

ML:  What is the path forward, then, on this budget year, when we do get the budget from Governor Greitens and start to go through that … as you said $450-million I think is the figure that’s going to have to come out of it.  How do you approach this?

MB:  “We can’t raise taxes.  We can’t take more from Missourians.  What we can do are find ways as we will continue to do where government can work better, where we can use more technology. We are unfortunately going to have to make tough cuts to services that may be a benefit to a small amount of people or a benefit to a small amount of special interests.  Unfortunately that may be just an extra service that government has done.

“As Democrats we’re not trying to raise taxes.  We don’t have the power to.  But we want to make sure we’re finding waste, fraud, and abuse, and we’re finding if there’s money that we’re not using in the state budget, that we’re being good stewards of the people’s money.”

ML:   Do you think there are a lot of places in the budget like that?

MB:  “I think there are very few.  Democrats have been working very hard over the years to fix those things in the budget already and we’ve been successful, and we’re going to continue to do that.”

House budget committee warned of impending fiscal challenges

The Missouri House Budget Committee was given a wake-up call in its first hearing.  First-year chairman Scott Fitzpatrick (R-Shell Knob) explained to its members the challenges they will face in crafting the budget for the fiscal year that begins July 1.

House Budget Committee Chairman Scott Fitzpatrick (photo courtesy; Tim Bommel, Missouri House Communications)
House Budget Committee Chairman Scott Fitzpatrick (photo courtesy; Tim Bommel, Missouri House Communications)

Fitzpatrick has said that budget could need to be trimmed by $500-million.    Former Governor Jay Nixon (D) already restricted $201-million from the current budget, and Governor Eric Greitens (R) is expected to make further restrictions in it.  Fitzpatrick said the items for which funding in the current budget is blocked likely won’t be appropriated in the Fiscal Year 2018 plan.

Fitzpatrick said some are describing the current budget situation as the worst since 1981.

In explaining how the state got here, Fitzpatrick said it began with a June marked by a drop in state revenue collections coupled with increased tax refunds to Missourians.

“We literally went from tracking at 3.2% growth for fiscal year 2016 on June 15 to being at .9% at June 30,” said Fitzpatrick.  “I mean that’s a $200-million swing comparing one year to the next, in two weeks.”

Fitzpatrick said that is combined with continuing growth in Medicaid and costs in the Department of Corrections, including a growing likelihood that Missouri will need a new prison.  He said those and other factors lead him to believe Missouri’s problem is with growing expenses more than it is with a lack of revenue.

“Since I’ve been here we’ve had, my first year we grew ten percent.  The second year … we contracted one percent.  The third year we grew almost nine percent and then this last year we grew one percent.  If you average that across the four years that’s not horrible revenue growth,” said Fitzpatrick.  “But the mandatories – the things that are in statute that people are eligible for like Medicaid have grown faster and that’s the challenge.”

The message, then, to members of the legislature – especially those on the budget committee – has been that there will be very little if any new spending in the Fiscal Year ’18 budget.

Another challenge is that the legislature will be starting the budget process differently than it has in recent years, in large part because Governor Greitens will not deliver his proposed spending plan as part of his State of the State Address next week.  Unlike recent history, when governors have delivered their budget proposals with that address, Greitens’ plan will be released closer to February 1.

Fitzpatrick believes the fact that Greitens is building his administration from scratch combined with the gravity and complexity of the budget situation is behind the delay.

House and Senate budget makers base their proposed spending plans on that of the governor.  Fitzpatrick said the delay could cause the House to change how it does some things, but he remains confident the legislature will pass a balanced budget by the Constitutional deadline of May 5.

“If we have to mess with our hearing schedule a little bit, start a little bit before [Greitens’] budget release on some of these departments that have fewer decision items and some of the ones that are commission-appointed directors and so forth, then we may have to do that.  I’m going to try not to do that but we’ll do whatever we have to do.”

The House’s appropriations subcommittees will begin holding hearings next week.