Legislature’s budget follows House lead; fully funds K-12 schools for first time

The state legislature has passed a budget proposal that for the first time fully funds the current form of the K-12 education funding formula.  The $27.7-billion spending plan for the fiscal year that begins July 1 would pump $48-million more dollars into the state’s public schools, providing them with nearly $3.4-billion.

Representative Scott Fitzpatrick (photo: Tim Bommel, Missouri House Communications)
Representative Scott Fitzpatrick (photo: Tim Bommel, Missouri House Communications)

The inclusion of full funding of the formula was a personal win for House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob).

“It was the number one thing I was going to figure out how to do when I released the [earliest version of the House’s budget proposal], was to fully fund the formula,” said Fitzpatrick.  “I made that decision early on.”

House Democrats including Representative Deb Lavender (Kirkwood) say they are pleased with the funding increase, but point out that the legislature passed last year a bill reinstating a cap on how much the formula can grow year-to-year.

“Yes we’re fully funding the foundation formula – at a rate of $450-million less than what the foundation formula would have been a year-and-a-half ago,” said Lavender.  “So, are we fully funding that?”

Representative Deb Lavender (photo; Tim Bommel, Missouri House Communications)
Representative Deb Lavender (photo; Tim Bommel, Missouri House Communications)

House Democrat Leader Gail McCann Beatty (Kansas City) said the budget included a “phantom fully funding of the formula.”

Republicans said reinstating that cap meant the formula would not continue to grow beyond what the legislature could appropriate.

“When the General Assembly took that cap off in 2010, starting at that point the formula has never been funded.  They tweaked the formula in a way that made it unfundable,” said Fitzpatrick.  “My contention would be that the formula that was agreed to in 2005, that everybody got in a room and worked out, is fully funded.”

The legislature’s proposal would also restore funding for school transportation, which Governor Eric Greitens (R) had proposed cutting.

The House and Senate voted to send that budget to Greitens Thursday, one day ahead of the constitutional deadline, and one day after selected House and Senate conferees finalized a compromise between each chamber’s proposals.

Legislature coming down to the wire this week on FY ’18 budget proposal

The legislature’s top responsibility enters its final push this week, as Friday is the constitutional deadline for it to propose a budget for the fiscal year that begins July 1.

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

Beginning tomorrow, selected House and Senate members will work to negotiate a compromise between each chamber’s budget proposals.  Any compromise the two sides reach must then be voted on by 6 p.m. Friday to be sent to Governor Eric Greitens (R).

The House proposed that the state should for the first time fully support the formula for funding K-12 schools.  Early discussions in the Senate suggested it would do otherwise, but it decided to follow suit.  That was the top priority for House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob), and with both chambers agreeing on it, he says his priority now is clear.

“A balanced budget,” Fitzpatrick said.

Getting there by Friday, however, will be challenging.  The difference between the two chambers’ budget proposals is somewhere beyond $100-million.

Fitzpatrick said much of that difference is in projects the Senate added when they were planning not to fully fund the K-12 education formula.  When the Senate voted to instead fund the formula, it didn’t remove those projects.

“Now that the formula is funded, I think the projects are going to be tough to [pay for],” said Fitzpatrick.

Another substantial difference between the two proposals concerns “Es.”  For several years, legislative budget makers have used an “E” at the end of a budget line to represent an open-ended spending limit.  This was often used in places where predicting how much would be needed over the course of a fiscal year was particularly difficult, and it would allow an entity to exceed the budgeted amount if necessary.  The effort to remove Es began several years ago, and the House proposed a budget that completed that removal.

The Senate restored some Es to various places in the budget.  Fitzpatrick wants to remove those in the final compromise.  He said their presence in the Senate’s proposal also distorts how far apart the House and Senate plans are.

“So like for the budget reserve fund, we put a $25.5-million number in there.  The Senate put the E back on and made it $1, so that makes their budget actually appear $25.5-million smaller,” said Fitzpatrick.  “So really to compare apples to apples you have to add $25-million to their budget to see the difference.”

Fitzpatrick said he doesn’t know how many more such examples exist throughout the budget plans.

One line of particular importance to Fitzpatrick and others in the House is the state’s legal expense fund, which has had an E on it.  That line has been the focus of great legislative attention this year after the revelation that the Department of Corrections has settled millions of dollars in lawsuits in recent years in cases of employee harassment, discrimination, and retaliation.

With an E on that line – the line from which comes the money for all settlements with the state – Corrections never had to come before a legislative committee to explain what was behind the multiple, large settlements.  Lawmakers say that kept them in the dark as to the environment and repeated issues in the Corrections Department.

The House’s proposal replaced that line with lines in the budgets of each state agency.  That meant any future settlement would come out of the involved agency’s budget, and if it had so many that it exceeded what the legislature appropriated, it would have to explain why to lawmakers.  The Senate returned the legal expense fund to being a single line in the budget.  Fitzpatrick and House members strongly want to see the House’s version restored.

House and Senate conferees begin meeting Tuesday morning.  Their goal is to have a compromise ready for each chamber to vote on by Friday.  Failure to meet the state Constitution’s deadline could mean legislators will have to meet in a special session, after the regular session ends on May 20, to complete a budget.

House Budget Chairman proud of proposed full funding of education

The House Budget Committee Chairman is proud of a budget proposal that would accomplish what’s been his top goal since taking that job.

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

Shell Knob Republican Scott Fitzpatrick said in August when he became the budget chairman that his number one priority was to fully fund Missouri’s public schools.  He recently unveiled budget bills that included fully funding the K-12 school formula.

If that part of the budget were to become law, it would be the first time the formula’s current form has had full funding since it was created by Senate Bill 287 in 2005.

“We’re making another year of record investment in K-12 public education,” said Fitzpatrick.  “To me that’s the single biggest thing of which I’m most proud, and the other thing is we did it without spending any more than the governor and the General Assembly agreed to spend.”

Some have noted that the full funding would come one year after the legislature reinstated a cap on how much the formula could grow, year-to-year.  Fitzpatrick said without those caps, the growth in the formula was unsustainable.

“When I got in to the General Assembly the formula was $400-million underfunded, and over the next three or four years we added about $300-million, I think, in funding to the formula, and it was still about $400-million underfunded,” said Fitzpatrick.

Fitzpatrick’s proposal would also reject Governor Eric Greitens (R) proposed cut of all funding to K-12 transportation.

“That’s an important part of what we’re doing with education is that we’re not taking money from transportation and just putting it into the formula to say we fully funded the formula.  We’re making the commitment that we’ve made in previous years to funding transportation as well as fully funding the formula,” said Fitzpatrick.

Fitzpatrick’s budget is based in part ON passage of a bill that would end a tax break for low-income seniors and disabled renters.  The money the state would save from that repeal would go to a program that provides in-home care for the elderly and disabled.

“We’ve invested every single dollar of that back into services for seniors – low-income seniors and a little bit as well for people with disabilities,” said Fitzpatrick.

Fitzpatrick believes a property tax credit should be for people who own their homes and are working to pay it off, “especially because people who are receiving nursing home services being completely paid for by Medicaid are eligible to receive the renter’s portion of the credit, so somebody could be in a nursing home that’s already being completely paid for by the state and then on top of that the state will write a check to them for what’s supposed to represent a credit for property taxes that they paid, and that seems to me to not make a lot of sense.”

The House has passed the legislation repealing that portion of the credit. It must next be considered by the Senate.

Fitzpatrick’s budget also restores some of the state aid to colleges and universities that the governor proposed reducing.  Fitzpatrick said he wanted to minimize the impact reductions would have on students in Missouri.

When legislators return next week from spring break, the full House Budget Committee will debate changes to Fitzpatrick’s proposal before sending it on to the full House, which could make further changes.  It then faces debate in the Senate before going to Governor Greitens, who could sign it into law, veto it in part or in whole, or make spending restrictions.