“….The choice facing members of the legislature has never been clearer: they can support Senate Bill 509 or they can support public schools, but they cannot do both….”
Today, from Governor Jay Nixon (D):
Gov. Nixon issues statement on data showing the impact of Senate Bill 509 on funding for local public schools
April 17, 2014
Senate Bill 509 would drain $620 million annually from public education and other priorities.
Jefferson City, MO
Gov. Jay Nixon today issued the following statement regarding data requested by the Missouri School Boards Association showing the impact Senate Bill 509 would have on local school districts across the state.
“These new numbers show that if the legislature succeeds in punching a $620 million hole in our state budget with this unaffordable giveaway to special interests, it’s our students and schools who will pay the price,” Gov. Nixon said. “Senate Bill 509 would drain hundreds of millions of dollars annually out of our K-12 schools — weakening our economy, undermining our stable business climate, and putting full funding of the foundation formula out of reach. Missourians want good schools and good jobs, not another dangerous scheme to defund our K-12 classrooms.”
According to the fiscal estimate produced by the legislature, Senate Bill 509 would reduce state revenues by more than $620 million annually when fully implemented. K-12 education is heavily dependent on general revenue, so public schools are affected disproportionately by measures that reduce the general revenue budget, such as Senate Bill 509.
“Missouri already has the sixth lowest taxes in the nation and even the conservative Tax Foundation has slammed these ill-conceived gimmicks for failing to create jobs or generate economic growth,” Gov. Nixon said. “For our state to succeed in today’s high-tech global economy, we need to our students to be prepared to compete worldwide. But instead of investing in public education, this legislature has chosen to funnel money away from our classrooms and into the pockets of lawyers and lobbyists who need it the least. The choice facing members of the legislature has never been clearer: they can support Senate Bill 509 or they can support public schools, but they cannot do both.”
Senate Bill 509 includes a 25 percent tax deduction for so-called “business-income.” This type of income is often reported by wealthier individuals, such as lawyers and lobbyists, with LLCs or corporate partnerships. In February, the right-leaning Tax Foundation wrote that “special carve-outs like this simply encourage individuals to structure themselves as pass-through entities for tax reasons, even if there is no economic or business reason for doing so.”
Instead of the unaffordable approach taken by Senate Bill 509, Gov. Nixon has laid out a proposal to fully fund the K-12 foundation formula and give working families a responsible tax cut by reining in wasteful tax credit expenditures.
Over the coming days, the Governor said his administration would continue to review the bill to identify any additional unintended consequences or drafting errors.
A link to the breakdown of district funding levels if Senate Bill 509 becomes law is available here. The data was generated using the same methodology used by education groups in assessing the impact of House Bill 253 last year.
How the “Friends of K-12 and Higher Education” voted [pdf] in the House:
JOURNAL OF THE HOUSE
Second Regular Session, 97th GENERAL ASSEMBLY
FIFTY-THIRD DAY, WEDNESDAY, APRIL 16, 2014
On motion of Representative Koenig, SS#3 SCS SBs 509 & 496 was truly agreed to and
finally passed by the following vote:
Allen Anderson Austin Bahr Barnes
Bernskoetter Brattin Brown Burlison Cierpiot
Conway 104 Cookson Cornejo Cox Crawford
Cross Curtman Davis Diehl Dohrman
Dugger Elmer Fitzpatrick Fitzwater Flanigan
Fraker Franklin Frederick Funderburk Gannon
Gatschenberger Gosen Grisamore Guernsey Haahr
Haefner Hampton Hansen Hicks Higdon
Hinson Hoskins Hough Houghton Hurst
Johnson Jones 50 Justus Keeney Kelley 127
Koenig Kolkmeyer Korman Lair Lant
Lauer Leara Lichtenegger Love Lynch
Marshall McCaherty McGaugh Messenger Miller
Molendorp Moon Morris Muntzel Neely
Neth Parkinson Pfautsch Phillips Pike
Pogue Redmon Rehder Remole Rhoads
Richardson Riddle Roorda Ross Rowden
Rowland Scharnhorst Schatz Schieber Shull
Shumake Solon Sommer Stream Swan
Thomson Torpey Walker White Wieland
Wilson Wood Zerr Mr. Speaker
Anders Black Burns Butler Carpenter
Colona Conway 10 Curtis Dunn Ellington
English Englund Frame Gardner Harris
Hubbard Hummel Kelly 45 Kirkton Kratky
May Mayfield McCann Beatty McDonald McKenna
McManus McNeil Meredith Mims Mitten
Montecillo Morgan Newman Nichols Norr
Otto Pace Peters Pierson Rizzo
Runions Schieffer Schupp Smith Swearingen
Walton Gray Webber Wright
ABSENT WITH LEAVE: 008
Berry Ellinger Engler Entlicher Hodges
LaFaver Reiboldt Spencer
Speaker Jones declared the bill passed.
104 members of the House voted to screw education. And they know it.
Bill signing Kabuki (July 12, 2013)
Rep. Denny Hoskins (r): your constituents know what you’re doing to them (August 26, 2013)
HB 253: any way you slice it (September 11, 2013)
HB 253: Watch out – It’ll be baaaaaaaaaack (September 11, 2013)