Revenue estimate shows Missouri in for yet another rough budget
The official revenue estimate released today for FY 020 shows Missouri has yet another rough budget year ahead and again proves [the] folly of attempting to tax-cut your way to prosperity. While the estimate reflects an expected $193 million in revenue growth, it is silent on the $320 million in revenue Missouri won’t collect next year due to the next phase of implementing an ill-advised 2014 tax cut [SB 509] As House Democrats warned then, this tax giveaway for [the] rich is resulting in serious consequences for everyone else.
State Rep. Kip Kendrick
House Budget Committee, Ranking Democratic Member
The final vote to override Governor Jay Nixon’s veto of SB 509. Representative Jeremy LaFaver (D) (left) – bearing witness, Representative Keith English (center) – casting the 109th vote necessary for the override, and Representative Ron Hicks (r) (right) – his escort on and off the House floor. May 6, 2014.
Kip Kendrick @Kip_Kendrick
Replying to @MBersin @Martha4MO
3 years into 5 year phase in and conservative estimate is $320 million this year. Year 4 and 5 will basically double this year’s cost. 6:13 PM – 28 Dec 2018
What, a $640 million shortfall the year after that?
University of Central Missouri President Chuck Ambrose [2016 file photo].
The following is an op-ed written by Chuck Ambrose, the President of the University of Central Missouri:
State Support for Higher Education an Investment in Missouri’s Economic Future
As Missourians, we all have a stake in our state’s economic success. As such, we should be cognizant of critical factors that contribute to stronger communities which also mean better public schools for our children and services to improve the quality of our lives. While our state faces budget challenges, higher education continues to be an exceptional asset in helping to meet economic as well as social goals, and citizens deserve a strong public policy in support of colleges and universities as an investment in the public good required to drive Missouri’s future forward. Continued reductions in appropriations for higher education are only hindering the opportunity to maximize the potential these institutions provide the state, and most importantly, directly to its people.
Growing jobs and creating an environment that stimulates the economy for all Missouri residents is the goal. Studies show the value of a college degree includes an enhanced lifetime earning potential of $1 million more for graduates versus those without a degree. Additionally, a well-educated workforce is good for local businesses seeking to broaden their consumer base. Amidst a growing need for the state to be more competitive on a global level, we must consider who is going to provide training for a workforce that is well prepared to seek out new markets for home-grown goods and services overseas. Evidence of Missouri’s desire to enter this realm includes a recent bid to bring Amazon’s second headquarters to Kansas City. A globally competitive environment for business requires a globally competitive commitment to higher education, and public higher education institutions are ready to respond.
Some 359,492 students are currently served by post-secondary education throughout the state. Collectively, we must ask ourselves how do we value these students’ place and the impact 27 public and 25 private campuses hold within Missouri’s public policy agenda? If they are important, then the current divestment trend must be reversed.
In order for higher education to achieve its full potential as an economic driver, there must be a stronger commitment to funding Missouri’s colleges and universities to ensure that students are not priced out of the opportunity to earn a degree. Institutions themselves also have a role in exploring and implementing new initiatives to help meet accessibility and affordability goals so that students do not bear the burden of rising educational costs and an escalating college debt load. But higher education institutions can’t do this alone.
During the past two decades, state support for public higher education has decreased dramatically, from 65 percent of Missouri public institutions’ total revenue to about 35 percent currently. Using the University of Central Missouri as an example, the net state appropriation for Fiscal Year 2018 was $52.7 million, considerably below the $57.9 million budgeted net appropriation for FY17. This is almost a $400 decline in funding per student in one year. Unfortunately, maintaining an accessible, affordable education will not get easier as the Missouri governor’s recommendation for FY19 funding dips to the 2004 state appropriations level.
While the decline in state funding presents a financial challenge, at UCM the focus on student success has meant finding ways to keep students from shouldering the impact of these revenue declines. This means keeping tuition below the consumer price index while still maintaining a quality education; an aggressive completion agenda; maximizing opportunities to create public K-12-higher educationbusiness partnerships such as The Missouri Innovation Campus and Innovation Track programs that reduce the time to degree completion and students’ debt; and becoming the first institution to implement the 15-to-Finish Scholarship concept to keep students on track for timely degree completion.
By contributing to a better economy, higher education can help break the cycle of poverty across the state. Meeting this goal also includes serving many first-generation, low-income students who are pioneering the education trail for their families.
Considering the benefits of a higher education, it is hoped that future public policy will recognize the value proposition Missouri colleges and universities represent for the state. Public institutions are positioned to deliver opportunities that will drive local economies, but more state support is needed to ensure costs are not passed onto Missouri families and that access to college and its affordability remain attainable goals.
Dr. Chuck Ambrose, President University of Central Missouri
Governor Eric Greitens (r) has ordered significant budget cuts, with higher education taking a significant hit. Over the years the republican controlled General Assembly has cut back the possibilities of revenue, creating a death spiral of diminishing revenue and continuous cuts in public investment.
Via Twitter from Tony Messenger at the St. Louis Post-Dispatch:
Tony Messenger @tonymess
‘Nobody was more disappointed about what happened yesterday than I was,’ says Sen. @calebrowden on @EricGreitens higher ed cuts. #moleg 2:37 PM – 17 Jan 2017
On May 6, 2014 the republican controlled General Assembly overrode then Governor Jay Nixon’s (D) veto of SB 509, an ill conceived bill which further exacerbates these same budgetary shackles and insures the Kansasfication of Missouri.
Then Representative (now Senator) Caleb Rowden’s (r) disappointment over the hits the University of Missouri (in his district) would take wasn’t evident (r) on May 6, 2014 when he voted [pdf] (Journal of the House, 1578) to override Governor Nixon’s veto.
WASHINGTON—Congresswoman Vicky Hartzler (R-Mo.) today voted to pass H.R. 2029, a bill to fund government activities through the end of the 2016 fiscal year.
“Missourians and Americans across the country want to focus on the holidays and spending time with their families,” Hartzler started. “They do not need to worry that the government isn’t going to be available when they need it. This package provides the certainty Americans need that their social security checks will go out on time, the Department of Homeland Security will have the resources it needs to keep them safe as they travel to see loved ones, and Congress will be able to focus on other American priorities as it goes forward.”
….does not fund the President’s climate change initiatives within Federal Emergency Management Agency (FEMA) and National Protection Programs Directorate (NPPD) within DHS.
….cuts EPA funding by $452 million below the President’s request, holding the agency to its lowest funding levels since 2008 and its lowest staffing levels since 1989;
….provides local schools increased relief from whole grain and sodium nutritional standards in school lunches.
….prohibits funding for the “light bulb” standard regulations, allowing Americans to continue buying affordable incandescent light bulbs.
….maintains existing protections that prohibit the use of federal funding for abortion….
….increases funding for abstinence education.
Because climate change isn’t happening? Because we all want to breathe crappy air and drink poisoned water? Because whole grains are bad for our children and more salt in their diet is so very good for them? Because incandescent light bulbs equal freedom! Because abstinence only education works so well?
Some of the social media replies, from unhappy right wingnuts:
Mitchell Cowan @mackelby
@RepHartzler It was a complete disaster and you are to blame. Sickened by your progressive votes and attitude. 11:46 AM – 18 Dec 2015
Uh, that’s really not the definition of progressive. Just pointing that out for you. The same individual continues with their upset, promising action:
Mitchell Cowan @mackelby
@RepHartzler I will vote dem next time so we can finish off America and start rebuilding. 11:46 AM – 18 Dec 2015
Uh, if you really want to finish off America vote to put another underachieving Bush in the White House. The last one damn near completed that job. Otherwise, I’m sure Hillary Clinton or Martin O’Malley or Bernie Sanders will appreciate your vote in 2016.
Farmstead Realty @FarmsteadRealty Dec 18
@RepHartzler If it wasn’t perfect you don’t vote for it. You should be ashamed. It gives Obama everything he wanted. 11:49 AM – 18 Dec 2015
Apparently President Obama is really missing those incandescent light bulbs.
And everyone else is thinking: “The next election is eleven months away, nah…”
Amber Hartenbower @AHartenbower
@RepHartzler If it’s not perfect, you vote no. Way to screw over Americans, but, hey, you keep your cushy job, right? 11:57 AM – 18 Dec 2015
Uh, technically, she did that when she (probably) supported George W. Bush for president. The screw over Americans part that is.
Jeff Wayman @PetsandPucks
@RepHartzler by “not perfect”, I can only assume you mean an evil monstrosity. You should be ashamed of voting for it. 1:04 PM – 18 Dec 2015
It’s the light bulb part that upset you, isn’t it? But will you remember that in November 2016? Nah.
Larry Myers @lmyersloz
@RepHartzler That is a cowardly and misleading statement. What essential functions would have stopped? None. You no longer have my support. 2:37 PM – 18 Dec 2015
Let’s hear it for whole grains!
The storm on Facebook is quite similar. A sampling of the responses:
[….] I’m sorry you supported the Obama Spending Bill Budget that provides funding for bringing in more Muslim terrorists, keeping Obamacare and Planned Parenthood. Democrats are gleeful and we the people (including unborn babies) are the losers again.
They didn’t notice all the anti-abortion stuff? There’s no pleasing some people.
[….] Et tu, Brutus?
Ah, a classicist.
[….] I am thinking when she holds town hall meetings we should attend, but not mouth at her, but instead stand and turn our backs to her when she begins speaking.
Yeah, that’ll certainly show her. While we’re at it, let’s put on a play!
[….] Thanks for selling us out again. You are not a conservative like you tried to say you were. You have lied and cheated to the people way to many times. We need someone who represents and will listen to the people not the establishment GOP. We are sick of this we want the person who will not bow to special interest groups. Enjoy your last time in Washington DC because if I can help it you won’t be going back next election.
[….] Explain just why you are different than a Democrat?
Legislature, Brownback struggle to fill $400 million budget deficit
Posted: June 6, 2015 – 11:22pm
The Kansas Senate and House participated in separate versions of legislative paralysis Saturday night while trying to wiggle state government out from under the burden of a $400 million budget deficit.
Inertia was so troublesome that House Majority Leader Jene Vickrey R-Louisburg, adjourned the House until Monday.
The Senate was still scheduled to convene Sunday, but the chamber’s agenda was unclear….
….For there is nothing mysterious about the foundations of a healthy and strong democracy. The basic things expected by our people of their political and economic systems are simple. They are: Equality of opportunity for youth and for others. Jobs for those who can work. Security for those who need it. The ending of special privilege for the few. The preservation of civil liberties for all.
The enjoyment of the fruits of scientific progress in a wider and constantly rising standard of living.
These are the simple, basic things that must never be lost sight of in the turmoil and unbelievable complexity of our modern world. The inner and abiding strength of our economic and political systems is dependent upon the degree to which they fulfill these expectations.
Many subjects connected with our social economy call for immediate improvement. As examples:
We should bring more citizens under the coverage of old-age pensions and unemployment insurance.
We should widen the opportunities for adequate medical care.
We should plan a better system by which persons deserving or needing gainful employment may obtain it.
I have called for personal sacrifice. I am assured of the willingness of almost all Americans to respond to that call.
A part of the sacrifice means the payment of more money in taxes. In my Budget Message I shall recommend that a greater portion of this great defense program be paid for from taxation than we are paying today. No person should try, or be allowed, to get rich out of this program; and the principle of tax payments in accordance with ability to pay should be constantly before our eyes to guide our legislation.
If the Congress maintains these principles, the voters, putting patriotism ahead of pocketbooks, will give you their applause….
Tim W. Jones @SpeakerTimJones
There’s the KC Red Star…then there’s facts: Gov. Sam Brownback: Tax policy growing Kansas [….] #moleg #ksleg @KCStar 4:02 PM – 1 May 2015
WASHINGTON – Republicans in the U.S. House and Senate say their budget proposals add up. It takes some creative math and logic to make that true.
The plans unveiled this week call for the U.S. government to collect more than $1 trillion in taxes in the next decade that Republicans have little or no intention of collecting. Some of that revenue comes straight from taxes to pay for Obamacare – which they want to repeal….
…. The House proposal includes about $94 billion for a special war-funding account that isn’t subject to spending limits set by Congress in 2011. The Senate plan includes $58 billion in war funding, the same amount requested by President Barack Obama.
Price of Georgia would boost defense spending through something called the Overseas Contingency Operations account, which funds military activities in Iraq and Afghanistan, and which critics call a slush fund.
Such spending is exempt from budget limits because it is supposed to be for activities related to overseas conflicts. Price initially set a spending level $36 billion above the president’s request.
Earlier this month, 70 House Republicans signed a letter saying they would block the budget if military spending wasn’t increased. Representative Mike Turner of Ohio, a member of the House Armed Services Committee who organized the letter, said he would vote against Price’s reserve-fund approach and called it “funny money….”
The budgets also call for repealing the 2010 health care law known as Obamacare, which was funded by a capital gains tax increase, a tax increase on top earners’ wages and levies on medical devices, health insurers and pharmaceutical companies. The budgets assume the revenue will continue to flow in.
Republicans could replace the Obamacare revenue with a U.S. tax code revision they have been discussing for more than four years and haven’t brought to a committee vote.
“They’re committed to the policy of repealing the Affordable Care Act, but they need the revenue in order to make their budget balance,” said Rep. John Yarmuth, a Kentucky Democrat on the House Budget Committee. “So they’re just doing it and saying it makes sense. And it clearly doesn’t make sense….”
They won’t let actual math stop them.
Today, from Representative Vicky Hartzler (r):
Representative Vicky Hartzler (r): ….Thank you. Thank you very much, uh, chairman. Uh, you’re a, a wonderful chairman and have helped us, uh, pro, produce a, a wonderful, responsible, uh, budget. And this budget goes a long way to address the out of control spending problem and crushing debt the administration has fostered over the last few years. Unlike the President’s proposal, though, our budget contains pro growth economic reforms, repeals Obamacare, and it balances. Most importantly, Price two restores harmful defense cuts and provides the necessary resources our war fighters need. The threats facing this nation and the world right now are vast, real, and expanding. ISIL has proclaimed a caliphate in the middle east and it is now looking to expand into other countries. Russia is continually making headlines with aggression and invasions in the Ukraine and surrounding areas. China continues to build its military as it gains more and more power globally. And Islamic extremism continues to spread to more and more countries. We as representatives of the people are charged with providing for the common defense. Given the size, reach, and increasingly brutal nature of the threats we face we should feel obliged to make sure that we create a budget that gives our military the tools necessary to address today’s threats and to be fully prepared to address the threats of tomorrow whatever they may be and wherever they may come from. As the only member to sit on both the House Budget Committee and the House Armed Services Committee I am proud that these two committees have came together, uh, come together for Price two to provide total defense funding above the President’s request. Missouri’s fourth congressional district is proud to be one of our nation’s most military intensive congressional districts, home of two major military installations, Whiteman Air Force Base and Fort Leonard Wood, and thousands of dedicated military families sacrificing so much to keep us safe. Providing our military the resources necessary to safeguard our liberties and protect our shores is one of the top legislative priorities I have. And I’m proud that these resources are provided in Price two. Again, I thank Chairman Price for his leadership on this committee and in this process and I urge my colleagues to vote yes on Price two….
“…Most importantly, Price two restores harmful defense cuts…”
Inigo Montoya: You keep using that word. I do not think it means what you think it means.
“…Russia is continually making headlines with aggression and invasions in the Ukraine and surrounding areas…”
Uh, as far as we know, the occupation portion portion of the crisis currently only involves area within the Ukraine. Besides, we thought republicans were enthralled with Vladimir Putin. Go figure.
“…we should feel obliged to make sure that we create a budget that gives our military the tools necessary to address today’s threats and to be fully prepared to address the threats of tomorrow…”
Uh, the United States spends the greatest amount of money on the military (by far) than any other nation on the planet.
Wait a minute, who is that in the background on the video? Why, yes, it’s Representative Joe Wilson (r).
Representatives Vicky Hartzler (r) and Joe Wilson (r) in Warrensburg, Missouri on September 18, 2012 [file photo].
Best quote of the day comes from economist Jared Bernstein’s blog:
House Republicans released their budget today, and I found it to be…um…how can I put this nicely?…orthogonal to reality
“Orthogonal to reality.” And here I thought we’d exhausted all the ways that there were to describe GOP delusions. Bernstein amplifies his remarks:
The policies put forth in this document suggest that America’s main problem is that the poor have too much and the wealthy, too little. The budget plan “corrects” this perceived imbalance by deeply cutting programs that help low- and middle-income people, and cutting taxes on those with high incomes, capital gains, multinational corporations and “pass through” business income.
Of course, as he notes, GOPers claim that this recipe results in growth that floats all our boats. Sadly, as Bernstein observes after pointing out the rather obvious problems with this logic:
I too believe in the American people and growth but I don’t believe in magic asterisks or tax cuts that pay for themselves. It’s great to have faith, but math is good too
Read the entire piece – it’s quite brief. And remember that part about the importance of math. I think that the observation is pertinent to the budget Missouri’s Republican-dominated legislature wants to impose on us. Something on the order of what is sinking Kansas, Wisconsin and a whole host of states with like-minded legislatures. That’s where the phrase “orthogonal to reality” becomes relevant to us as well. Just think, Scott Walker is destroying Wisconsin with this same mumbo-jumbo and, as a result, he’s a front-runner for GOP presidential candidate.
Jake: ….Honest… I ran out of gas. I… I had a flat tire. I didn’t have enough money for cab fare. My tux didn’t come back from the cleaners. An old friend came in from out of town. Someone stole my car. There was an earthquake. A terrible flood. Locusts! It wasn’t my fault, I swear to God!
His name isn’t Adelson or Koch, but he’s spending millions on politics, hoping to roll back taxes and reform education.
By Naomi Schaefer Riley
Oct. 26, 2012 6:36 p.m. ET
….This year he spent more than $2 million collecting signatures to eliminate the state’s corporate and personal income taxes and replace them with a sales tax capped at 7%. Mr. Sinquefield decided to postpone the initiative until next year because it wasn’t polling well.
Then again, he says, smiling, he may not need to put the initiative on the ballot in 2013 after all-because of some unexpected help from Missouri’s next-door neighbor. Earlier this year, Gov. Sam Brownback signed into law a significant tax cut, reducing the Kansas income-tax rate to 4.9% from 6.45% and eliminating taxes on 190,000 small businesses.
“Unbelievably brilliant,” Mr. Sinquefield says of the Kansas approach. He expects that businesses, especially S corporations and limited liability companies, will flock across the border. “You go into Kansas City and you stand on State Line Road, right in the heart of the metro area,” he says, and watch businesses jump from the Missouri side to Kansas. “The doctors are going to move. The lawyers are going to move. It will be a little harder for manufacturing to move, but they’ll move too. There will be a cloud of dust at the Missouri-Kansas border.” No surprise: Mr. Sinquefield bankrolled-he won’t say how much-a group called Kansans for No Income Tax that helped get the law passed…..