May 18, 2013

Gov. Nixon praises legislature for work on budget, mental services, education; says it ‘fell flat’ on Medicaid expansion, tax credit reform (AUDIO / VIDEO)

Gov. Jay Nixon says the Missouri Legislature made significant progress in some key areas, such as expanding access to mental health services, funding higher education on a performance outcomes-based model, and creating business incentives to bolster the economy.

He says the legislature worked in the final week of session to fund First Steps, so children with special needs can access early intervention, and Missouri Works to provide job resources. Nixon also praised the legislature for its work to fix the state’s broke Second Injury Fund, calling such successes ”solid steps forward.” Nixon was also pleased with lawmakers’ work to streamline the functions of the Department of Natural Resources, an initiative he laid out in his State of the State address in January.

“I appreciate the bipartisanship,” he says. However, he added that the legislature “fell flat” on several other important issues, such as reforming tax credits that “continue to consume a large part of the state budget.”

“Working Missourians will needlessly go without healthcare” because of the legislature’s failure to expand Medicaid, he says. “All of this unfinished business is particularly stark in the light of unnecessary things the legislature did find time to address, like Sharia Law and something called Agenda 21.”

Sharia is the moral code and religious law of Islam, a deciding factor on the gamut of public policy in Islamic countries: crime, politics, economic factors, as well as day-to-day living. Agenda 21 is a United Nations’ sustainability plan that was passed by the U.N. in 1992.

Nixon didn’t say outright that he would veto the Republican-led measure to cut income taxes and increase sales and use taxes, but did say he has concerns, and says Missourians aren’t interesting in “risky experiments.”

“I have pushed fiscal responsibility,” he says, pointing the the state’s declining unemployment rate, increase in jobs, and Missouri’s perfect triple A credit rating.

“HB 253, the tax bill that got to my desk last week … an initial assessment has raised some red flags,” Nixon says. “This bill would cost more than 800 million dollars a year.”

And Nixon stands by his earlier statement that he would move to cut jobs within the Department of Revenue if the legislature cut the department’s funding, a penalty dealt out after it was discovered Revenue staff was copying and storing conceal carry applicant information.

“We’re not going to switch to a Washington style budget that operates on two thirds of the year,” Nixon says. “We’ll make the necessary trims based on the budget that was passed.”

He says the federal funds for Medicaid expansion is still on the table until January 2014, and that he’ll continue to move forward to work with residents, the medical industry and lawmakers.

“I think we will see consequences of not moving forward,” he says, “such as impacts on rural hospitals and cost shift to patients.”

Nixon downplayed gun rights measures, which monopolized much of this year’s session.

“It didn’t distract me, we do what we do here,” he says. (See video below.) “Unemployment’s down, we’re adding jobs, we’re focused on providing additional tools for education … you’d have to speak to the folks on the third floor.”

The “folks on the third floor” are members of the Missouri House of Representatives and of the Missouri Senate.

AUDIO: Governor Nixon outlines this year’s successes, failures in the legislative session (4:50)

 

Economic Development bill major failure on last day (AUDIO)

A second major casualty of a filibuster on the last day of the legislative session is an economic development bill.  Senator Eric Schmitt of Kirkwood had hoped to gain passage of a series of issues he says are at a ‘critical point”

The bill included new caps on two of the state’s biggest tax credits programs–historic preservation and low income housing.  

Schmitt had argued the legislature needed to act after years of just talking.  “Dear Lord! Every year somebody is waiting for this fairy tale scenario to drop from the sky to have the perfect bill…We don’t really live in that world.  So this is an opportunity for us to move forward,” he told the Senate.

But northwest Missouri Senator Brad Lager says the bill reflects the ways the legislature has become too heavily influenced by special interests. “Right now we can’t pass anything through this chamber that the trial lawyers don’t bless.  We can’t pass anything through this chamber that a handful of tax credit recipients can’t bless. We can’t pass anything through this chamber that fundamentally restructures the tax code of this state,”  he said.

Lager says the priorities in the economic development bill were all wrong.  He talked long enough during senate debate that the sponsor of the bill ran out of time to get it passed.

AUDIO: Schmitt 14:15

AUDIO: Lager 46:35

Legislature passes tax cuts (AUDIO)

The legislature has sent tax cuts for businesses and individuals to the Governor for his signature.

Missouri legislators have wrestled with tax cuts to compete with neighboring Kansas for two years, the goal being to attract and retain businesses and grow jobs. Rep. Andrew Koenig (R-St. Louis County) says Missouri is lagging behind in restructuring taxes to bolster the economy.

The bill would cut business taxes in increments over the next several years and only if the state’s general revenue fund could support them.

The bill’s sponsor, Rep. T.J. Berry (R-Kearney) says the Office of Administration would weigh general revenue amounts over three years before cutting the taxes, which would be reduced to a minimum of 50 percent.

Opponents of the measure say Medicaid expansion was denied by legislators on the premise that the state could not afford it, and that money would cut from education funding, but that those same lawmakers are supporting a bill that takes a huge bite out of state revenue.

AUDIO: Rep. Andrew Koenig talks about tax structures in neighboring states.

Senate GOP breaks Democrat filibuster; advances tax cuts (AUDIO)

A Republican ultimatum forces Senate Democrats to get out of the way of a watered-down tax cut bill.  Republicans have put the bill into position for passage today by breaking a Democratic filibuster early this morning.

Senator Will Krause of Lee’s Summit had gotten a more ambitious tax cut and sales tax increase proposal through the Senate earlier this year .  But the House supports a weaker plan that phases in a fifty percent business tax cut in the next five years, cuts the corporate income tax rate by three percent in ten years or more, and lowers the individual income tax rate by a half-percent in the next ten years or more.

The “or more” phrase is important to both sides because the tax cuts would not go into effect unless the economy grows by at least $100 million a year. And the sales tax increase in the earlier bill has been eliminated.

Democrat floor leader Jolie Justus and her other nine Democrat senators had  held up the bill until they were told to back off or other issues they oppose would be taken to a vote. Justus thinks a veto by Governor Nixon is likely.  Nixon already indicated a dislike for the earlier bill.

AUDIO: Justus :09

Kraus, however, thinks a governor’s veto would be overridden.

AUDIO: Kraus :12

The final senate vote is expected this afternoon. If the House approves some Senate changes, the bill goes to the Governor.

After recent Boston bombing and Texas tragedies, IRS warns donors about charity scams (AUDIO)

The Internal Revenue Service is warning Missouri donors about charity scams following the recent tragedies in Boston and Texas. Missourians who wish to help and donate to victims of the recent tragedies at the Boston Marathon or the Texas fertilizer plant explosion are urged to only donate to qualified charities.

Missouri IRS spokesman Michael Devine says he warns folks of scam artists that impersonate charities to steal money or get private, financial information from well-intentioned taxpayers. “Everyone should know that some of these scam artists operate bogus charities and they will call you by phone to solicit money or  your financial information, such as a bank account or a credit card number,” Devine said. “Sometimes they will steer you to a bogus website that will try to get you to fill in information to solicit funds and those are probably scams, and you need to be very careful of them.”

He says fraudulent schemes involve solicitations by phone, social media, email or in-person. “The important thing to remember anytime you want to donate is to check and make sure that whoever is asking you for the donation is who they say they are,” Devine said. He says most charities are going to make general statements requesting for generous donors to give to their organization for disaster relief.

Devine says a few things to keep in mind are to never give out personal information, don’t give or send cash, and to report any suspected fraud.

The IRS offers the following tips to help taxpayers who wish to donate to victims of the recent tragedies at the Boston Marathon and a Texas fertilizer plant:

·        Donate to qualified charities.  Use the Exempt Organizations Select Check tool at IRS.gov to find qualified charities. Only donations to qualified charitable organizations are tax-deductible. You can also find legitimate charities on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.

·        Be wary of charities with similar names.  Some phony charities use names that are similar to familiar or nationally known organizations. They may use names or websites that sound or look like those of legitimate organizations.

·        Don’t give out personal financial information. Do not give your Social Security number, credit card and bank account numbers and passwords to anyone who solicits a contribution from you. Scam artists use this information to steal your identity and money.

 ·        Don’t give or send cash.  For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the donation.

 ·        Report suspected fraud.  Taxpayers suspecting tax or charity-related fraud should visit IRS.gov and perform a search using the keywords “Report Phishing.”

 For more information about tax scams, visit www.irs.gov and use the keywords “scams and schemes.”

 

 AUDIO: Mary Farucci reports. (1:02)