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They're Back! General Assembly Opens 2013 Session with New Faces, Optimism
The 97th Missouri General Assembly opened this week with the usual pomp and ceremony. Friends and family gathered in the two chambers adorned with flowers, waiting for the noon festivities to begin.
Because of term limits many new faces will join the Missouri General Assembly this year.
In the House of Representatives, 50 of the 56 representatives that make up the freshman class are first-term legislators with six previously serving in either the house or the senate.
The Senate welcomed 12 new members to their chamber, all having previously served in the House of Representatives.
One distinction of the general assembly this session is that the Republicans have the largest contingent of members since the Civil War. In the house, Republicans control 109 of the 163 seats, while Democrats control 52( there are two vacancies in the house). In the Senate, Republicans control 24 seats, the Democrats 10. This super majority would give the Republicans a veto-proof majority in both chambers if all party members stuck together.
Opening session days are usually filled with optimism, bold promises and pledges to work together. However, it usually doesn't take long for partisan politics to enter the process. With the session running until May 17, only time will tell how long the festive mood lasts.
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"Triple E Agenda," "BIG Solutions," and Medicaid Expansion
As part of the opening ceremonies of the Missouri General Assembly party leaders in both chambers gave remarks on their legislative priorities. In addressing the House of Representatives, newly elected Speaker of the House, Tim Jones (R-Eureka), promoted his "Triple E Agenda" which is focused on the issues of economic development, energy, and education reform. Specific items in that agenda include revisions in the state's tax credit programs, a bond insurance proposal for road and infrastructure improvements, pursuing new energy sources, and education reforms like restrictions on teacher unions and the tenure system. In the Senate, newly chosen President Pro-tem, Tom Demsey (R-St. Peters), promoted his plan of "BIG Solutions", an acronym for "Build Our Infrastructure," "Invest in Education" and "Grow Our Economy" that mirrored the house Republican agenda. Senate leaders particularly want to lower tax burdens on individuals and businesses to counter sweeping tax cuts enacted last year by Kansas as a way to attract businesses to that state. Click here to watch President Pro-tem Demsey's opening remarks. One idea not being advocated by Republicans is expanding Medicaid. Governor Nixon wants lawmakers to expand Medicaid as designated in President Obama's health care law. In their remarks, Republican leaders voiced reluctance to the expansion out of fear for its long-term cost. In follow-up remarks, Democratic leaders were quick to voice support for the Republicans' goals of creating new jobs and making revisions in tax policy. But Democratic leaders also endorsed Gov. Nixon's plan to expand Medicaid. "Expansion of Medicaid is not only necessary, but it's also good for the state. It is a job creator that is unprecedented," said Minority Leader Jolie Justus (D-Kansas City). She also noted that rural hospitals want Medicaid expansion to offset the funding cuts the federal government will make when they stop reimbursing hospitals for taking care of the uninsured. In his remarks, House Minority Leader Jake Hummel (D-St. Louis), also supported Medicaid expansion stressing that political dogma should not stand in the way of creating jobs and improving access to health care. Now that both parties have indicated their priorities, the stage is set for the legislative process to begin. Everyone expects spirited debate on all these issues.
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The Dollars and Sense of Medicaid Expansion - Series #5
 The Center for Rural Affairs is a well-respected advocacy group for family farming and rural concerns. The Center supports the expansion of Medicaid and recently posted on their website some of the reasons Medicaid expansion would be beneficial for rural America. Click here to read their perspective on the Medicaid expansion.
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Lawmakers Signal Interest in Re-Authorizing Benevolent Tax Credits
Of the many Missouri tax credit programs (61 in total), perhaps none are more important than those that help generate donations to benevolent organizations that assist Missouri citizens in need. Tax credits, like the one that benefits food pantries and the credit benefiting pregnancy resource centers, have built-in spending caps, restricting the dollar amount any particular program can redeem in a fiscal year.
Unfortunately, both of these two important tax credits expired in the last two years. Victims of a larger debate about tax credit reform, the benevolent tax credits are now getting significant legislative attention. House Bill 87 (Burlison, R-Springfield), Senate Bill 15 (Richard, R-Joplin), and Senate Bill 20 (Dixon, R-Springfield) have already been filed re-authorizing these and other benevolent credits.
Click here to read the full text of House Bill 87. Click here to read the full text of Senate Bill 15. Click here to read the full text of Senate Bill 20.
In addition, House Speaker Tim Jones (R-Eureka), indicated in his opening remarks this week that he is supportive of the re-authorization bills, stating "[t]hese credits have been instrumental in helping so many worthwhile causes, ...we must work to reinstate [them]."
The MCC will be working this session with members on both sides of the isle to get these bills through the general assembly and on to the Governor's desk.
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Benevolent Tax Credits Are Not the Problem
In relation to the $8 billion plus the state expended in FY 12, the fiscal impact of the benevolent credits is exceedingly modest. For example, the pregnancy resource credit had an annual cap of $2 million annually.
A tax credit commission established by Governor Nixon recently issued a new report revising an earlier recommendation made by the commission in 2010. In 2010 the commission recommended a sunset date on all of the benevolent credits. In the new report the commission is finally recognizing that these small credits are not the fiscal issue and so the recommendation is simply that these credits be reviewed every few years. The commission is now focusing the attention where it should have been all along - on the top ten credits that have the most impact on the state budget, particularly the tax credits for historic preservation and low income housing. Click here to read the commission's report.
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Missouri Ranks 41st in Education
Education Week, a prominent national magazine that covers education issues, has just issued its rankings comparing the quality of K-12 education in the 50 states. Missouri ranks 41st. The rankings compare elementary reading scores, high school graduation rates, college completion rates, and the amount spent per student on education. Maryland garnered the #1 ranking followed by Massachusetts, New York and Virginia. To read the full report, click here.
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