May 24, 2013

Budget Conference Committee sends proposal back to House, Senate

The House-Senate Budget Conference Committee has wrapped up its work, leaving it up to the two chambers whether to approve the fiscal year 2013 spending plan and send it to the Governor.

Budget Conference Committee Co-Chairmen Kurt Schaefer (center of image) and Ryan Silvey (right). Photo courtesy: Missouri House Communications

As part of an agreement that ended a deadlock in the Senate, the Committee proposes dividing $3 million between seven institutions instead of the $2 million that had been allocated just to Southeast Missouri State University. The institutions and the amounts they will get are: Missouri Western State University – $516,559, Southeast Missouri State University – $885,969, Northwest Missouri State University – $515,476, Missouri Southern State University – $346,521, University of Central Missouri – $580,377, Lincoln University – $49,663 and Truman State University – $105,435.

Senate Budget Committee Chairman Kurt Schaefer (R-Columbia) told the conference committee that under the agreement, the Senate added to veterans home funding legislation a requirement that the Joint Education Committee develop a funding formula for higher education by 2015.

The Committee agreed to propose restoring $25 million to the Blind Medical Subsidy Fund, which the House had recommended cutting in its original budget proposal. The Committee added language to treat it like the State Children’s Health Insurance Program (SCHIP) children’s Medicaid program, limiting the program to those earning up to three times the poverty level and requiring copays or premiums for some income levels.

This answered the concerns of House Budget Committee Chairman Ryan Silvey (R-Kansas City), who didn’t like that it was open to people of all income levels. “The only means test that they employed was do they make too much to qualify for Medicaid? If so, you’re on the program. Now they’ll have to obviously means test those that are on the program and if you make over 300 percent, which by the way is over $57,000 a year for a family of three, if you’re making more than that then you’re not going to qualify for the program.”

In a statement, a Governor’s Office praises the restoration of money to the fund but opposes the proposed limitations. A Jay Nixon spokesman says, “the attempt to place additional limitations on eligibility through the budget process does not change existing law – and is invalid. We will ensure that this program continues to serve all 2,800 needy, blind Missourians who depend on it.”

See the budget bills

The Committee’s plan would language that would have pulled funding from the Sue Shear Institute for Women in Politics at the University of Missouri-St. Louis, but left a section that says institutions participating in political activity can not receive state funding.

Schaefer says that just reflects current law, “which is that no money going to higher education should be used for political activity. Whether it’s the Sue Shear Institute or anything else, if it’s public money that’s being used through public education to fund political activity, that already was basically against the law anyway.”

The Committee proposed restoring $3 million to the tourism budget, leaving it about $200,000 below what it was before the Senate cut it in its original budget proposal. The Committee also settled on $750 thousand for regional autism projects. The House had originally proposed $1 million dollars for those, with the Senate having proposed no funding.

Earlier in the week its members opted to go with the House’s proposal that all state workers making under $70,000 a year would receive a 2 percent raise beginning July 1.

Its proposal now goes back to the House and Senate for consideration. Per the Constitution, the budget must be delivered to the Governor by Friday.

House and Senate leaders spar on why budget conference is being held up

The state Constitution requires that the new budget be sent to the Governor by a week from today, but the House-Senate Conference Committee has yet to start formal work on it. Leaders from both chambers have very different takes on why that is.

Representative Ryan Silvey (left, courtesy: Missouri House Communications) and Senator Rob Mayer (right)

House Budget Committee Chairman Ryan Silvey (R-Kansas City) says the Senate has to pass veterans home funding before the conference committee can know how much money it has to budget. The House on Wednesday passed a bill to pay for veterans services with casino boarding fees, and early childhood programs with tobacco settlement money.

Silvey says the House has told the Senate twice that the proposal is ready, and says he’s “baffled” that the Senate hasn’t acted on it. “Clearly (Senate President Pro-Tem) Rob Mayer (R-Dexter) is playing games with veterans and children. It’s disappointing … it’s frustrating.”

Mayer says he isn’t aware of any messages from the House about that bill, SB 498. “What I was told … that (the House was) going to take the bill back and try to … put some additional language on that the Senate had requested.”

House leadership says that is not the case.

Mayer says he’s confident veterans funding will be addressed by the end of the session on May 18, even if it isn’t done by the budget deadline, May 11.

“In the past years we have taken up the budget and passed it prior to legislation being passed and approved.”

Mayer says he’s more concerned with how the budget work is being done.

“Why have all these backdoor, behind-the-scenes discussions? Why not have openness and transparency and go through each line item that is conferenceable [sic] and explain the Senate position and the House position, let the general public hear what’s going on and the reasons for the level of funding or lack of funding or the elimination of funding.”

Mayer adds, “This makes the second year in a row that for some reason, the junior budgeter in the House doesn’t want to have public conference committee hearings. I don’t understand it.”

Silvey questions the Senator’s memory.

“Apparently he doesn’t remember being appropriations chair with Chairman (Allen) Icet, because we’re not doing anything differently that hasn’t been done for decades in this building. And, (our budget plans) will all be public (at the conference committee’s next meeting) on Monday.”

Mayer says Silvey is mistaken when he says how the current budget conferees are operating is the way he did it when he was in their position.

“I know that you have to have some discussions to work out some of the details outside of the actual public hearing process, but at the end of the day … we always had conference committee hearings. We never failed to have conference committee hearings.”

The budget conference committee will meet again on Monday.  When asked if it has a plan ready in case a veterans home funding plan isn’t passed, Silvey says, “Not yet, but we will.”

House budget chairman confident balanced budget will be on time

A conference committee of the House and Senate could begin meeting as early as today to hash out the two chambers’ differences in the budget. The Chairman of the House Budget Committee says the Senate’s budget proposal is not balanced.

House Budget Committee Chairman Ryan Silvey will be one of the House budget conferees. (photo courtesy, Missouri House Communications)

Ryan Silvey says an amendment offered by Senator Jim Lembke (R-St. Louis) threw the Senate’s proposal off kilter. “Senator Lembke was very clear … there was only $3 million left in the bank and he was very upset there was only $3 million left on the bottom line, and then by the time he got to House Bill 2011, he offered a $10 million dollar amendment. It’s not rocket science to figure out that three minus ten is negative-seven, so they put it out of balance singlehandedly.”

Silvey says what puts the Senate proposal out of balance is the restoration of a $28 million dollar blind medical subsidy fund, which the House proposed cutting. “It’s been our argument all along that it’s not sustainable, so it’s ironic that issue, which has become such a focal point, is what put the budget out of balance.”

Silvey says the two chambers do agree on at least one point. “Clearly the House made higher education a priority. We’re glad that the Senate concurred with that. The Governor’s $106 million cut to higher education is no longer on the table and won’t be discussed in conference.”

The state Constitution requires the budget be balanced and delivered to the Governor by the end of next week. Silvey is confident that will happen. “We’re going to figure out how to clean up the mess and what we can get in conference, but I’m confident that we’ll have conference committee reports on time by the constitutional deadline and that the Governor will get a balanced budget from the general assembly.”

Silvey will be one of the budget conferees for the House. Speaker Steven Tilley (R-Perryville) says he has a good idea who the others will be. “The vice chair of budget, Rick Stream (R-Kirkwood), then you’re going to see the third person from the Republican side be either Lincoln Hough (R-Springfield) from southwest Missouri or Tom Flanigan (R-Carthage) from southwest Missouri as well. On the Democratic side it will almost always be Chris Kelly (D-Columbia) and Sara Lampe (D-Springfield).”

House and Senate budget proposals have clear differences (AUDIO)

The divide between the House and Senate versions of the budget is clear. The two chambers will go to conference, likely tomorrow, to try to hammer out differences.

The House and Senate will likely begin a budget conference tomorrow. (Picture courtesy: Missouri House Communications)

One disparity involves $70 million dollar tax amnesty legislation passed by the House, that hasn’t come to a vote in the Senate. The Governor and the House built that into their budget proposals. The Senate did not, and the bill remains in that chamber awaiting a vote.

Senate President Pro Tem Rob Mayer (R-Dexter) says he hasn’t brought the tax amnesty bill up to a vote because it uses one-time money to balance the budget. He says, “There’s also the argument that people that have violated the law, that have not paid their taxes, should be penalized in some form. I feel like by (passing this legislation) they avoid a penalty.”

House Budget Committee Chairman Ryan Silvey (R-Kansas City) says both chambers passed the tax amnesty bill last year. He says the difference it makes between the two spending plans makes for an interesting budget conference. “Normally you budget to the same number and you just have different priorities … in this instance, in order to get the House positions back we have to not only cover the cost of the House position but also account for the fact that we’re going to be $70 million below in the big picture.”

Another difference between the two proposals comes from another bill, HB 1731, that reallocates lottery revenue. Its biggest impact is to support state veterans programs that lawmakers agree are in desperate need of money.

Silvey says that bill is also awaiting passage in the Senate. “We need to have that addressed. If that bill continues to get hung up … then we’re going to have to figure out a way that we can continue to fund our veterans homes because we’ve all committed to funding them. Nobody wants to underfund that priority.”

The House has approved motions to send 12 of the 13 budget bills to conference. Conferees will likely be officially named today.

AUDIO:  Silvey and Representative Sara Lampe (R-Springfield) discuss differences between the House and Senate budget proposals

House Republicans say ‘no’ to $50 million federal grant

The Missouri House of Representatives has turned down a $50 million dollar grant from the federal government for its connection to the Affordable Health Care Act.

Representatives Ryan Silvey (left) and Chris Kelly (photos courtesy, Missouri House Communications)

An amendment offered during budget debate would have authorized the Department of Social Services to use that federal grant to upgrade its computer systems. Budget Committee Chairman Ryan Silvey (D-Kansas City) told the body the purpose of the grant is to set up a health insurance exchange. “What we’re trying to do with this amendment is enact Obamacare through the backdoor and call it a computer upgrade. I simply can’t support that.”

Silvey also criticized Governor Jay Nixon, saying his administration had applied for this grant after the legislature failed to pass a health insurance exchange bill, with plans to spend it outside of the legislature. Silvey says the administration was asked to include the matter in the supplemental budget, or in a governor’s amendment during the normal budget process, neither of which happened.

Instead, Silvey says the legislature received a letter from Budget Director Linda Luebbering about the grant. “When the Governor wanted to give $40 million to higher ed from the mortgage settlement we got a governor’s amendment. When he wants to spend $50 million on a backdoor Obamacare, we get a letter from the budget director. So I made the decision that as much as I enjoy the budget director and the job that she does, that she doesn’t get to make amendments to the budget and so I didn’t put it in.”

House Democrats argued against turning down the money. Representative Chris Kelly (D-Columbia) said the money is not necessary to have a health care exchange. “There is nothing in the law or the regulations that requires the health care exchange for this to happen. Nothing at all … The fact of the matter is our computers are falling apart and we could fix this problem with this money.”

Kelly agreed with Silvey’s criticism of the Governor for not sending an amendment and conceded that the grant would upgrade the computers the federal government would use to establish a health insurance exchange. He disagreed with Silvey that the goal is to pave the way for the health care exchange. “The computer system takes care of all our healthcare whether there is an exchange or not.”

Democrats argued unsuccessfully that some of the money could be used to fill other budget needs, such as the $28 million dollar supplement for the blind that was eliminated in the House’s budget plan.

Representative Jill Schupp (D-Creve Coeur) told her colleagues, “That’s my money. That’s my constituents’ money. That’s our taxpayer dollars that we can utilize to improve our computer systems regardless of whether anyone in this room is willing or unwilling to accept the fact that the Affordable Care Act may just be coming down the pike.”

The amendment was defeated 52-98, mostly along party lines.