House budget plan proposes nearly $3-million for education on new voter photo ID law

One of the things House Democrats wanted in the chamber’s proposed spending plan for the next fiscal year, they got.

The House voted to move $1.5-million from an election administration improvements fund in the Secretary of State’s office to go to the implementation of the voter photo ID law approved by voters in November.  Specifically that money is for educating voters about the new law so that they can comply with it when they go to the polls.

St. Louis City Democrat Peter Merideth wants that education process to include direct mail; something the Secretary of State told the House Budget Committee he wasn’t planning to use.

“When we run campaigns, when we try and reach out to voters about elections, there is no better way to reach voters than direct mail, especially in rural parts of the state where people may not even have internet, may not even have cable,” said Merideth.  “Direct mail reaches these people.  That is the best way to let them know about their new rights and responsibilities.”

St. Louis City Democrat Bruce Franks, Junior, said the needs of educating people about the new law can vary from community to community.

“If we’re going to present something new, something that we haven’t had, we have to have adequate education on informing every single community, every single district that we have,” said Franks.

The change would bump the funding available for voter photo ID education to nearly $3-million.  The House’s earlier proposal for funding it with about $1.4-million was based on what the Secretary of State had asked for.

House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob) supported Merideth’s amendment.

“I’m not saying that they can or will spend this money, but they have a plan.  If for some reason their plan doesn’t work, having another tool in the toolbox is reasonable,” said Fitzpatrick.

The measure initially failed but after a motion to reconsider the vote, many Republicans sided with Merideth and Fitzpatrick and approved it.

It becomes part of House Bill 12.  The House is expected to vote Thursday on whether to send that and the rest of the budget bills to the Senate for its consideration.

House refuses additional reductions to MU in higher education budget

The state House has finalized its proposed budget for state aid to colleges and universities for the fiscal year that begins July 1.  Another favorable vote will send that plan to the Senate for its consideration.

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

That plan would reduce funding to the University of Missouri by 9-percent, or $50-million, compared to the current fiscal year.  This was part of a reduction across all higher education due to the need to reduce spending.  Lawmakers blocked on Tuesday attempts to take additional money from MU.  House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob) urged legislators to not seek to penalize MU over its handling of racial tensions, as many sought to do during last year’s budget debates.

“I don’t like any more than any of you do some of the things that have happened over the last year-and-a-half at the University.  That being said, there is a new president at the institution.  He has already started implementing changes.  I think that a little over 9-percent cut to their operating budget in one year is pretty significant,” said Fitzpatrick.  “I think that if we continue to cut the University of Missouri system the message that we are sending across the state is that we’re going beyond punitive reductions at that point.  At that point I think we’re sending the message that we are expecting the University to raise tuition to make up the difference that we are going to be causing here if we continue to go down this path.”

Some lawmakers still wanted to take more from MU.  Ash Grove Republican Mike Moon wanted to take $1-million from the University to promote tourism.

“One thing that keeps ringing in my mind is $2-million in hidden bonuses that were uncovered by the state auditor,” said Moon, referring to a recent finding regarding the university.  “Maybe I should’ve been more diligent and directed where that money be taken, and maybe salaries need to be looked at.  These bonuses, though, have to stop,” said Moon.

Moon’s amendment was rejected.

The House also rejected attempts to redirect money that goes toward Lincoln University’s land grant status and the federal dollars that come with it.  This was of particular importance to Democrats, including the top Democrat on the Budget Committee, Michael Butler (D-St. Louis).

“We are in danger again this year for a university in the State of Missouri losing those matching funds,” said Butler.  “A lot of work on both sides of the aisle has gone into this.  We’re very happy with the result even though we’re still $3.6-million away [from where we’d like to be].” 

Democrats attempted to remove language in the higher education budget that blocks state money from going to higher education institutions that offer less than the international tuition rate, or scholarships, to students lacking lawful immigration status.

Kansas City Democrat Lauren Arthur called that language punitive, and said it often hurts students who entered the country not by choice but with their parents.

“We passed this language a few years ago and we’ve seen two outcomes for these students.  First, they can’t afford to go to college so they don’t … or, they decide to go to college outside of this state, where we lose an individual who is a contributing member of society,” said Arthur.

Fitzpatrick said Missouri must, “prioritize the citizens of the state, and for that matter the United States, when we look at who’s going to pay the lowest rate of tuition … “This was never an issue until the federal government administratively granted lawful presence – not lawful immigration status; they still have an unlawful immigration status – but when they administratively granted lawful presence to people who were here illegally.”

Arthur’s amendment was rejected.

The higher education budget is laid out in House Bill 3.  The House is expected to vote Thursday on whether to send that and the rest of its proposed state budget to the Senate.

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 plan aims to improve harassment investigations in Department of Corrections

The latest version of the House’s proposed budget would restructure the Department of Corrections, in light of how it handled cases of harassment and retaliation against employees.

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

House Budget Committee Chairman Scott Fitzpatrick (R-Shell Knob) said his plan would redirect money that goes to the Department’s offices of Inspector General and Human Resources, and create an Office of Professional Standards.

Fitzpatrick said he worked with Corrections Director Anne Precythe in developing his proposal.

“She’s making significant changes to the Department,” said Fitzpatrick.  “The Department of Corrections has an inspector general, currently, which I think has been doing a sub-par job, and that’s what I’ve gotten from the director.”

The House in January announced the creation of the Subcommittee on Corrections Workforce Environment and Conduct after a news article revealed the Department had settled numerous lawsuits filed by former employees who had been harassed.  Those settlements were costing the state millions of dollars.

The subcommittee’s chairman, Representative Jim Hansen (R-Frankford), said the committee came to a similar conclusion about the job that the inspector general had been doing.

“In the hearings it appeared to me like there was a lot of confusion concerning who’s doing what when it comes to [human resources] and the investigators handling the cases, of who’s handling what, who knows what’s going on.  The right hand doesn’t know what the left hand is doing,” said Hansen.  “I think it needs to be streamlined … there needs to be adjustment made and a review of everybody’s responsibility, and maybe be able to put this under one silo on who’s going to handle it and who’s reporting to who, and how fast it can get to the top.”

Fitzpatrick’s spending plan would reallocate within the Department’s budget more than $2.3-million to create the new office.

“We’ve created that in its own section in the budget, and [Director Precythe’s] plan is to use that to try to build more trust in the institution of the Department of Corrections, and to better deal with the personnel issues that they’ve been having, that have been creating these large claims,” said Fitzpatrick.

Missouri Department of Corrections Director Ann Precythe (photo; Tim Bommel, Missouri House Communications)
Missouri Department of Corrections Director Ann Precythe (photo; Tim Bommel, Missouri House Communications)

Precythe did not speak to House Communications for this story, but the Department did supply a memo from her dated March 14.  In that, she said the Office of Professional Standards will be made up of the Civil Rights Unit (formerly Human Resources), the Employee Conduct Unit (formerly the office of Inspector General), and the Prison Rape Elimination Act (PREA) Unit.

She said new processes would “begin soon” and, “we are still fine tuning the remaining details,” but said, “We are changing our investigative processes to allow institutions to handle most offender-related incidents.  This change allows us to reallocate resources into the Civil Rights Unit.  The Civil Rights Unit will conduct investigations into allegations of discrimination, harassment, retaliation, and unprofessional conduct.  With additional resources, the Human Relations Officers will be able to conduct and complete investigations even faster than they do now.”

“In addition, Human Relations Officers will soon be conducting training statewide for all employees and will be doing additional outreach and follow up with employees who feel that they have been subjected to discrimination, harassment, retaliation or unprofessional conduct.  More Human Relations Officers also means more opportunities for them to visit institutions and offices throughout the state and interact with employees outside of the investigative process.”

Precythe explained the Employee Conduct Unit would investigate employee violations of procedure, unexpected offender deaths, suicides, and potential homicides.  Those investigations would be assisted by law enforcement in certain cases.

Fitzpatrick’s budget also removes the “E” found on many lines in the budget.  Those Es represents an open-ended spending limit on funds in which legislators expect money beyond what they allocate might be needed before the next budget is created.  One such E was found on the budget line from which comes money for settlements the state must pay.

Fitzpatrick and others have said it is because that line had an “E” that legislators were unaware for years of the settlements involving the Department, and the harassment and retaliation issues that caused them.  By removing the E, agencies must now come to the legislature and explain why they would need additional money for court settlements.  That could shed light on recurring problems such as the Corrections Department had.

Fitzpatrick said he also proposes putting an appropriation for legal expenses in the budget of each state agency, whereas before the money for settlements across all agencies came from one line.

“It’ll make sure that we can still pay claims and judgments against the state, but it’ll also put some skin in the game from the departments’ perspective so that the effects of their actions aren’t something that they don’t feel,” said Fitzpatrick.

The House continues work this week on a budget proposal to send to the Senate.  Once the House and Senate agree on a spending plan it must still go to Governor Eric Greitens (R).

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.

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.’”

Missouri House again endorses less time for unemployment benefits

The Missouri House has again voted to reduce the length of time people can claim unemployment benefits.

House Budget Committee Chairman Scott Fitzpatrick again carried unemployment fund reform legislation as he did in 2015. (photo; Tim Bommel, Missouri House Communications)
House Budget Committee Chairman Scott Fitzpatrick again carried unemployment fund reform legislation as he did in 2015. (photo; Tim Bommel, Missouri House Communications)

House Bill 288, sent to the Senate Thursday, would cut that time period from 20 to 13 weeks if the state’s unemployment rate is less than 6-percent.  It could increase if the jobless rate increases, reaching a maximum of 20 weeks if that rate exceeds 9-percent.

Republicans said the measure is meant to keep the state’s unemployment fund solvent when the economy takes a downturn.  Missouri has had to borrow money from the federal government to cover benefits in past economic slowdowns, and business owners have had to pay millions of dollars in interest on those loans.

“Missouri’s the only state that’s had to borrow in the last five recessions, so we’re trying to fix that,” said bill sponsor Scott Fitzpatrick (R-Shell Knob).

Democrats including Gladstone representative Jon Carpenter called the bill unnecessary.  He pointed to other states with Republican leadership that offer 26-weeks of benefits and pay more each month.

“Don’t vote yes on this bill because we’ve got to keep the fund solvent.  Don’t let that be the argument unless somebody proves to you why that is – why that’s necessary when all these other states can do it,” said Carpenter.

Fitzpatrick said many of those states likely make getting benefits more difficult than does Missouri, allowing them to do more with fewer funds.

Representative Jon Carpenter urged his colleagues to vote against changes to Missouri unemployment benefits.  (photo; Tim Bommel, Missouri House Communications)
Representative Jon Carpenter urged his colleagues to vote against changes to Missouri unemployment benefits. (photo; Tim Bommel, Missouri House Communications)

Representative Rick Brattin (R-Harrisonville) and other Republicans said 20 weeks is plenty of time for a person to find another job.

“Everyone here can do their due diligence and walk, and go through your districts and you will find ‘help wanted’ signs everywhere,” said Brattin.  “We don’t have a ‘jobs’ problem.  We have a ‘people willing to work problem’ within our districts.”

Representative Bruce Franks, Junior, (D-St. Louis City) said that isn’t true in his district, and said it can often take more than three months for a person to learn the skills or earn the certification needed to take on a new job.

“When we’re talking about bills – especially unemployment compensation, that affects every single Missourian – only thing I ask is the thing that I’ll continue to ask every time I stand up here and talk about any bill, is that we take all communities into consideration,” said Franks.

The measure mirrors one the legislature endorsed over the veto of former Governor Jay Nixon in 2015 that the state Supreme Court threw out on a procedural issue.

New Corrections head to House budget makers: hold off on talk of a new prison

Some state lawmakers have questioned whether Missouri will soon need another prison, but the prison system’s new director hopes to keep that from being necessary.

Missouri Department of Corrections Director Ann Precythe testifies to the House Budget Committee February 14, 2017. (photo; Tim Bommel, Missouri House Communications)
Missouri Department of Corrections Director Ann Precythe testifies to the House Budget Committee February 14, 2017. (photo; Tim Bommel, Missouri House Communications)

House Budget Committee Chairman Scott Fitzpatrick told his committee and Corrections Department leaders this week that he’s concerned about the overall trend in recent years, of an increase in Missouri prisons’ populations.  Department staff said the state’s prisons are operating at or near capacity, with around 32,000 inmates.

Fitzpatrick referenced a recent case in which a man who molested and exposed himself to his girlfriend’s 14-year-old daughter was sentenced to only a few months in prison.

“I think a lot of that is pressures on judges and prosecutors, knowing that we’re at capacity,” said Fitzpatrick.  “I don’t want child molesters getting four months, or people who are exposing themselves and doing things like that to children getting out of jail like that.”

Despite the state’s current budget picture, in which legislators are looking for ways to cut and are expected to seek little or no new spending, Fitzpatrick told the committee, “Seems to me that we’re on a collision course with a new prison, and that may be something that we have to look at.  I’d rather see if we could do something to make it where we didn’t need as many prisons, but if it comes down to giving child molesters four months in jail or building a new prison, I am in favor of building a new prison.”

The Department’s new director, Ann Precythe, told lawmakers her preference would be to keep the state from needing more prison space.

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

“When I saw the need to expand and increase beds, my initial reaction is, ‘Wait a minute, we need to review what’s happening.’” said Precythe.  “Where are we getting the best bang for the buck?  And that’s going to be keeping people in the community, and then what are we doing to keep them in the community and help them not reoffend.”

Precythe said she wants the Department to focus on being more efficient financially, and on finding ways to reduce recidivism.

“My commitment to this committee is not to come back to you and say we need to build more prison beds.  I think we need to be criminal justice smart on crime and not just pay for crime, and there are ways to do that,” said Precythe.

Precythe, who was chosen in December by Governor Eric Greitens to head the department, said she’s not ready to discuss what policy changes she might ask for in addressing recidivism and prisons’ populations.  She expects to be able to tell lawmakers by next year what the future of the state’s prison system looks like.

Precythe said the age of Missouri’s prisons must also be accounted for when considering whether additions are necessary.  The state’s oldest, Algoa Correctional Center near Jefferson City, is a minimum-security facility that became a prison in 1932.  The new director has toured it and said it appears to be meeting what Missouri needs of it.

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.

Legislator exploring ways to improve state employee benefits even if pay hike not possible for FY ’18

The Missouri legislature could have a difficult time building a pay increase for state employees into the Fiscal Year 2018 budget, but there are other things it could consider to improve those employees’ benefits.

Representative Mike Bernskoetter chairs the Joint Interim Committee on State Employee Wages (photo; Tim Bommel)
Representative Mike Bernskoetter chairs the Joint Interim Committee on State Employee Wages (photo; Tim Bommel)

The Joint Interim Committee on State Employee Wages has heard a follow-up report from St. Louis-based CBIZ Human capital Services.  CBIZ studied nearly 38,000 of Missouri’s 50,000 employees.  It’s already reported to the legislature that those employees are the least paid in the nation, with compensation more than 10-percent below what is recommended to compete in the job market.

The study said it would cost the state $13.69-million to bring more than 5,000 of those state workers’ pay up to the minimum CBIZ recommended to be competitive in the market.  That would be a one-percent increase in the state’s payroll.

Committee Chairman Mike Bernskoetter (R-Jefferson City) said building that into the budget that legislators will propose over the next couple of months could be difficult based on what he’s heard from the House’s Budget Committee Chairman, Scott Fitzpatrick (R-Shell Knob).

“I’ve heard reports where he thinks we’ll have to cut $500-million out of the budget,” said Bernskoetter.  “Hopefully it won’t be that bad but I guess we’ll see as they go through the process.”

Bernskoetter said he does believe that if there is enough money to increase state employee pay, it is among Fitzpatrick’s priorities.

“If the budget is the way he thinks it is it’s going to be tough this year, but he’s led me to believe he’s interested in improving state employee pay,” said Bernskoetter.

He said even if the state can’t begin increasing state employees’ pay this year, the study makes clear a path toward improving that pay.

“We have a blueprint for the future, so there is something in that,” said Bernskoetter.  “We have a plan that hopefully we can implement in the future.  If not this year, next year.”

Some of CBIZ’s other recommendations could be worked on this year, however.  One is that Missouri replace its step-based system for awarding salary increases.  A CBIZ representative called it “archaic,” and expensive to administer.  Bernskoetter said he is reviewing proposed legislation to make that change.

Another recommendation is that Missouri return to requiring that an employee work five years to be vested rather than ten years.  Bernskoetter liked that idea as well.

“Say we have Governor Greitens and he wants to bring in the best and the brightest … even if he was here for two terms – eight years – they would not get anything out of it other than their salary.  They wouldn’t be vested,” said Bernskoetter.  “That’s one way of compensating the best and the brightest.  If we can’t at least give them a great salary, we’ve got a good benefit package.”

Bernskoetter would also like to see state employees given more flexibility, where possible.

“Obviously you have some places – the Department of Corrections – where you have to be staffed 24-hours a day and you can’t really be flexible.  But if we can be flexible in certain departments – if people want to work 6 to 2, or if they can work from home, I think I need to sit down and talk to different departments and be more flexible with employees,” said Bernskoetter.  “If we can’t give them a pay raise, then be more flexible with their schedule.”

CBIZ won a bid of up to $300,000 to conduct the pay study.

Our earlier stories:

House Members optimistic about taking first step in improving state employee pay

Legislators to learn more about state employee pay study at meeting next week