Proposed Missouri Tax Cuts in Special Session: Pro and Con

Pro: Governor Mike Parson’s Office

On Monday, during a press conference at the State Capitol, Governor Mike Parson announced that he has issued the official call for a special session to make historic income tax cuts and extend key agriculture tax credit programs for a minimum of six years. The General Assembly will meet in Jefferson City on September 6, 2022, at 12 p.m. to begin consideration of Governor Parson's proposed legislation.

"My team and I have been working with our colleagues in the General Assembly and agriculture partners to formulate a plan to adequately extend our critical agriculture tax credit programs and pass the largest income tax cut in state history," Governor Parson said. "Today, we believe we have that plan and are ready to call legislators back to Jefferson City to get to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian."

Tenets of Governor Parson's proposed tax plan include reducing the individual income tax rate, increasing the standard deduction, and further simplifying the tax code. Governor Parson's proposed plan includes:

–Reducing the top individual income tax rate from 5.3 to 4.8 percent, a nearly 10 percent cut;

–Increasing the standard deduction for individuals by $2,000 and by $4,000 for married joint filers; and

–Eliminating the bottom income tax bracket.

Governor Parson's tax relief plan means significant savings for Missourians each year. Below are a few scenarios that estimate state income tax savings for Missourians of different backgrounds, based on the State's tax structure:

–Senior making $20,000 per year - 100 percent decrease in tax liability;

–Single adult making $25,000 per year - 32 percent decrease in tax liability;

–Single mom with two kids making $35,000 per year - 21 percent decrease in tax liability; and

–Married couple making $125,000 per year - 11 percent decrease in tax liability. 

"Our tax cut proposal means that every taxpaying Missourian, no matter their background, income, or job description, will see a reduction in their tax liability," Governor Parson said. "Every Missourian will earn their first $16,000 tax free and married joint filers will earn their first $32,000 tax free, resulting in significant savings for millions of Missourians. Our plan puts more of Missourians' hard-earned dollars back in their pockets and aims to make it a little easier for families to put food on the table and gas in the car."

Governor Parson's special session call also includes the extension and creation of several agriculture tax credit programs intended to help develop key areas of Missouri's agricultural industry, the state's top economic driver. The sunset for each program will be for a minimum of six years. The call includes:

–Extending the expiration of the meat processing facility investment tax credit;

–Creating a tax credit program for retail dealers of higher ethanol blend fuels;

–Creating a tax credit program for retail dealers of biodiesel;

–Creating a tax credit program for Missouri biodiesel producers;

–Creating a tax credit program for establishing or improving urban farming operations;

–Extending the expiration of the Rolling Stock Tax Credit program;

–Extending the expiration of the Agricultural Product Utilization Contributor Tax Credit;

–Extending the expiration of the New Generation Cooperative Incentive Tax Credit;

–Exempting utility vehicles for agriculture use from state and local sales and use taxes;

–Creating the Specialty Agricultural Crops Act; and

–Amending the Family Farms Act to modify the definition of small farmer.

Con: Missouri Budget Project

Statement from Amy Blouin, President & CEO, Missouri Budget Project

While Missouri is fortunate to have the budget reserves it currently does, this situation is temporary, and is a result of short-term federal funds. Quite simply, relying on the current surplus to fund permanent tax changes isn’t fiscally sustainable, or responsible, and will ultimately require cuts to state services like we saw in Kansas a few years ago.

In response to COVID, the federal government provided billions of dollars to Missouri, which bolstered the state’s economy and state revenue. Those extraordinary federal funds also allowed the state to stockpile a large amount of general revenue. Governor Parson was reluctant to use short term federal funds for ongoing needs, and the same logic applies here.

Moreover, while Governor Parson focused on how certain struggling individuals might pay less in taxes, the proposals discussed today remain heavily weighted to benefit the wealthiest Missourians. What’s more, it would not benefit the thousands of Missourians who earn too little money to owe income taxes – even though they pay more in overall state and local taxes than their wealthy counterparts. In fact, in Missouri, the lower your earnings, the more you pay in state and local taxes as a share of what you make: according to the most recent analysis, Missouri families in the bottom quintile of income pay 9.9% of their income in state and local taxes, compared to just 6.2% for the wealthiest 1% of families.

Missouri can’t afford to enact the failed Brownback tax failure that devasted Kansas' budget. With Brownback’s policies, a budget surplus became a deficit, lawmakers had to make repeated and drastic cuts to state services, and the state’s economy suffered. After years of budget crises, that state’s Republican legislature reversed course and repealed most of the tax cuts. Because of the Hancock amendment, Missouri policymakers won’t have that option.

Missouri is the Show-Me State, and the Kansas failure showed us the devastating results of these kind of cuts to schools, public safety, healthcare, and the many other fundamental state services all of us rely on.

Governor Parson Signs Bill Extending Child Care Quality Improvement Program

On June 7, Missouri Governor Mike Parson signed HB 2365, a bill to remove the pilot status and extend the sunset of Missouri’s child care quality improvement program, known as the Quality Assurance Report.

The voluntary program provides an avenue for child care providers in home-based, exempt from licensure, and center-based care to receive professional development coaching, training, and seek best practices in caring and educating young children.

“We know that quality life-long learning begins with early childhood education. Continuously improving early learning in Missouri is going to set our children up for a lifetime of success,” said Rep. Brenda Shields, sponsor of HB 2365. “I am proud that Governor Parson signed the bill into law for Missouri’s kids.”

Since initial passage in 2016, Missouri’s Quality Assurance Report has had five small cohorts and has allowed Missouri to compete and obtain two federal preschool development grants, resulting in more than $30 million in federal funding since 2019 to streamline and improve Missouri’s early childhood governance and infrastructure.

“This program extension is the latest example of how Governor Parson and the Missouri General Assembly are working together to support our state’s youngest children and those who care for them,” said Craig Stevenson, director of policy and advocacy for Kids Win Missouri.

Through an evaluation report after the first five cohorts, more than 75% of participating child care providers reported that the program resulted in improvements to their program. Improving children’s quality of child care environments and interactions with providers results in better outcomes and kindergarten readiness.

“Having a system in place that can provide additional tools to help families identify quality child care is a win for young children in Missouri,” said Robin Phillips, CEO of Child Care Aware® of Missouri.  “The more tools parents have to make informed choices, the more empowered they are to choose a child care provider they can partner with in their child’s growth and development.”

“The Quality Assurance Report gives early care and education providers a tool that will facilitate a continuous improvement program,” said Linda Rallo, vice president of Aligned. “As a business-leader led organization, we believe high quality early education programs will deliver the highest return-on-investment to society by preparing children for success later in life.”

The Quality Assurance Report will be led by the Office of Childhood within the Department of Elementary and Secondary Education and based on feedback, will increase support in implementing best practices to providers specializing in care for infants and toddlers, home-based child care, and Pre-kindergarten age children.

State Approves Money for Emergency Rental Assistance

On Monday, Governor Mike Parson signed HB 16 into law, which provides more than $324 million in funding for the Emergency Rental Assistance Program (ERAP). Passage in both the House and the Senate was unanimous.

“HB 16 will provide much needed assistance to tenants and landlords across the state. COVID-19’s economic impacts have created hard times for many Missourians, and we are happy to provide this immediate relief,” Governor Parson said. “I applaud the work of the General Assembly, House Budget Chair Cody Smith, and Senate Appropriations Chair Dan Hegeman for their work in getting this legislation across the finish line for the people of Missouri.” 

The ERAP was passed by Congress in December 2020. The program's passage made funding available to state and local governments to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic. 

The program includes up to 12 months of assistance for rental arrears, forward rental assistance, utility arrears, and utility forward assistance. Utility assistance includes electricity, gas, water and sewer, trash removal, and certain energy costs.

Both landlords and tenants are eligible to apply for assistance through the program. More information regarding the Emergency Rental Assistance Program can be found on the U.S. Department of the Treasury’s website. 

The Missouri Housing Development Commission will administer the ERAP in Missouri. Additional information and the application portal can be found at www.mohousingresources.com.

A Moment with Mike -- Bills Moving Through Committees

      As we enter the second month of session the natural progression of the governmental process will bring more and more issues to light as the hundreds of bills filed begin to move through the committee process and on to the House Chamber  for discussion.

      Last week the Missouri House gave approval to a bill I mentioned in a previous report that is designed to reinstate several tax credit programs that encourage donations to charitable organizations.  Commonly referred to as benevolent tax credits, these programs offer a tax break to individuals who donate money to organizations like food pantries and pregnancy resource centers.  Unfortunately, some of the credits expired last year and the result has been a potential funding crisis for these non-profits.  Putting the benevolent credits back in place will rectify this and allow them to continue to serve where there is a need.  The total cost to our state will be approximately $2.9 million each year in forgone tax revenue, but the benefits this investment will produce for countless Missourians will be priceless.

      The House Elections Committee met last week to approve two pieces of legislation meant to ensure voter fraud doesn’t occur in Missouri.  One piece of legislation is a constitutional amendment that would allow Missourians to decide whether voters should have to show a form of photo identification at the polling place.  The second bill would put a voter ID system in place in the event voters approve the change to our state constitution.

      This is an issue the legislature has considered numerous times in recent years.  The legislature and the governor actually put a voter identification requirement into law in 2006, but it was ultimately struck down by the Missouri Supreme Court.  In 2011, the General Assembly approved a constitutional amendment to let voters decide on the issue, but it was kept off the ballot by a court decision last year.  This year, we hope to allow Missourians to decide once and for all if they should have to prove that they are who they say they are when they vote.  The goal of this legislation is not in any way to disenfranchise voters, but instead to make sure every vote counts and that every vote is cast by the person who is registered to cast it.  If passed, this legislation will bring about a change which will protect the integrity of the voting process.

      Also last week, the Joint Committee on Education unveiled the plan for a new funding model that determines the amount of state support for all of our public higher education institutions.  Last year the General Assembly passed a bill that would require the Joint Committee on Education to develop a model for funding public higher education institutions by December 31, 2013.  The way our funding process currently operates is by allocating money to schools based largely on what they’ve received in the past and what the state has available.  There is a continual argument about equity funding for our schools and the percentage raises or cuts that we have seen for years simply increases the disparity.

      The goal of the Joint Committee on Education was to develop a plan that was fair and equitable for all schools.  We can now move forward as we consider legislation that will possibly put this plan in place.

     If you have questions, you may reach me at my Capitol number 573-751-9465, at the local district number, 660-582-4014, by email at mike.thomson@house.mo.gov or by mail at Room 401B State Capitol Building, Jefferson City, MO 65101.

Northwest Medical Center Awarded “Rural Hospital Broadband Connection Grant”

Northwest Medical Center was chosen to receive a $25,000 grant to support its broadband, high-speed internet services.  The grant was awarded by MoBroadbandNow, which was established by Governor Jeremiah Nixon in 2009, as a public-private initiative to expand and enhance broadband accessibility and adoption in Missouri. 

Access to affordable, reliable and fast broadband services are necessary for Northwest Medical Center to continue providing the best healthcare services possible to residents in Northwest Missouri.  The award will support Northwest Medical Center’s internet-based services including telemedicine, electronic health record management, patient information data transfer, professional development, and other on-line resources. 

 “One of the very real benefits of improved broadband service in rural Missouri is in telemedicine – connecting Missourians and their physicians with specialists many miles away who can look at high-resolution images and receive other vital information on a real-time basis to help doctors treat those patients. Expanded broadband accessibility between healthcare providers will mean access to quicker and more specialized care that is often life-saving for patients.” ---Governor Nixon

“Northwest Medical Center is dedicated to implementing the latest technologies that allow us to connect our patients to the best healthcare expertise while enjoying the convenience of remaining in their home communities.  This grant will help support our efforts to be the trusted health home for all in our region.”---Jon Doolittle, Northwest Medical Center C.E.O.

Currently, Northwest Medical Center utilizes broadband connectivity in the hospital, as well as Albany Clinic East, Albany Clinic West, Grant City Clinic, and Stanberry Clinic locations.   Northwest Medical Center was one of eleven Missouri hospitals awarded grant money.         

Veterans Designation Now Available on Missouri Driver License and State ID

As part of Senate Bill 470, signed by Governor Nixon and effective on August 28, 2012, Veterans may now obtain a Veteran designation on their Missouri Driver License or State ID Card.

To get the Veterans designation, a Veteran needs to present at any Missouri license office a copy of the DD-214 showing a discharge status of “Honorable,” “General,” “Under Honorable Conditions,” or “General under Honorable Conditions” and pay the applicable fees for the license or card. The Veterans designation, a ribbon with the word “Veteran” inside, will be printed on the back of the card. Additional information can be found online at http://dor.mo.gov/faq/drivers/veterans.php.

If the driver license is not due to expire within the next six months, the transaction would be processed as a duplicate with the same expiration date as the current license. If the driver license is due to expire within the next six months, the transaction would be processed as an early renewal, and the Veteran would be required to present acceptable documents to verify name, date of birth, place of birth, social security number, and Missouri residential address.

“Veterans in Missouri have wanted a Veterans designation for a long time, instead of always having to carry their DD-214,” said Missouri Veterans Commission Executive Director Larry D. Kay, “by listening to the needs of its Veterans, Missouri has once again shown its support for those who have served.”

If a Veteran needs assistance in obtaining a copy of their DD-214, they are encouraged to either contact an MVC Veterans Service Officer by calling 1-866-VET-INFO, or online at http://www.mvc.dps.mo.gov/service/serviceofficer/. They can also check with their local Veterans Service Organizations as many posts have Service Officers available as well.

The Missouri Veterans Commission, a state agency, operates seven State Veterans Homes, five State Veterans Cemeteries, and the Veterans Services Program.  The Commission is committed to honoring and serving Missouri’s Veterans whose dedication and sacrifices have preserved our nation and its freedoms.  For more information about the Missouri Veterans Commission programs, call 573-751-3779, online at www.mvc.dps.mo.gov, or facebook.com/MissouriVeteransCommission.

Governor calls for update to review of state tax credit programs

(Missouri Digital News) -- Gov. Jay Nixon is reassembling a commission to once again look over Missouri's 61 tax credit programs.

Nixon originally tasked the Missouri Tax Credit Review Commission with a similar review in 2010, which resulted in a report recommending the elimination of some of the state's tax credits.

In a statement issued by his office, Nixon called upon the commission to update its original report due to "record redemptions" during the 2012 fiscal year. Nixon also said Missouri redeemed $629.3 million in tax credits in 2012, an "all-time record" and up from $522.9 million in 2010. The commission is set to meet at the State Capitol on Sept. 12, the same day legislators return for their 2012 veto session.

During the last legislative session state legislators said Missouri is expected to redeem $685 million in tax credits.

Efforts to scale back tax credits to businesses, developers and special interests have been stalled by a dispute between Missouri's House and Senate. While various Senate members have called for cuts in tax credits, a majority of the House has strongly supported tax credits for economic development.

Nixon said the commission is comprised of 27 members, including business officials and legislators. It is co-chaired by former state Senate Appropriations Chairman Sen. Chuck Gross, R-St. Charles. Gross is now the director of administration for St. Charles County.

Emergency Water Aid for Livestock Producers

In the face of a historic drought, Gov. Jay Nixon has established an emergency cost-share program that has approved more than 5,000 contracts to aid livestock producers and farmers in accessing water.
The program, established by Gov. Nixon on July 23, covers 90 percent of the cost of digging a new well, deepening an existing well, or other practices to provide emergency access to water for producers and farmers. To be eligible, projects must provide immediate and significant relief to producers and farmers who are suffering from drought. The program will provide up to $20,000 for any individual project.
As of this morning the program has approved more than 5,000 contracts for emergency projects, at an average cost of $4,800 per livestock project.
“Gov. Nixon heard the needs of Missouri livestock producers and he took quick action to help us out at this critical time,” said Lonny Duckworth, president of the Missouri Cattlemen's Association. “Our industry is a vital component of Missouri agriculture, which is the backbone of our state economy. Gov. Nixon's emergency cost-share program is making a real and immediate difference for thousands of producers across our state. We thank the governor for listening Missouri’s cattlemen and helping keep our industry moving forward.”

Worth County Compiling Disaster Reports for Drought

A sweltering heat wave has gripped the area and the governor has requested information so that he can declare disasters as needed. Various offices are completing damage reports and sending info regarding the drought to the governor’s office. Temperatures were in the 90’s and 100’s all last week with no end in sight for this week.
Mark Cadle of the Farm Service Agency said that they were trying to secure an emergency release of CRP land. Normally, most CRP land has managed provisions where they can be hayed only once every three years; Cadle said that the FSA is seeking the release of ground that was hayed last year. Cadle said that they were also seeking to get land released for grazing.
One of the difficulties is that the county must have a 40% shortfall in moisture over the last four months. While the county has received little rain in May and June, it still did not necessarily meet the 40% shortfall when March and April were added.

Fireworks Law Signed by Governor Nixon

Gov. Jay Nixon today signed into a law a bill that removes a discrepancy between Missouri and federal laws on the labeling of commercial fireworks, and makes those fireworks that are legal under federal law now legal under Missouri law. Because Senate Bill 835 contains an emergency clause, it takes effect immediately, and brings clarity for communities and civic organizations that plan and sponsor Fourth of July fireworks displays.

“Celebrating America’s birthday with community fireworks displays is a time-honored tradition in towns large and small across Missouri,” Gov. Nixon said. “I greatly appreciate the countless volunteer hours that our civic organizations devote to making these community events successful, and this new law will help ensure that the displays continue to be both safe and enjoyable.” 

In 2009, the U.S. Department of Transportation changed the way it defined and classified fireworks for the purpose of labeling, shipping and possession. Those federal changes included the designations on the amount of explosives contained in the fireworks. Missouri law had referenced the old designated amounts, and had not been updated to reflect the new federal designations.

Gov. Nixon’s signing of Senate Bill 835 enacts the updates to Missouri law to reflect those previous changes in the federal law. The bill was passed by the General Assembly with the support of the Missouri State Fire Marshal.

Gov. Nixon signs legislation to provide dedicated funding source for Missouri’s veterans homes

In a ceremony today at the Cameron Veterans Home, Gov. Jay Nixon signed copies of legislation providing a dedicated funding source for Missouri’s seven veterans homes, where more than 1,300 military veterans live. The legislation ensures that the homes will have the resources they need to provide high-quality, modern care in the next fiscal year, which begins July 1, and beyond.

“We can never fully repay our military heroes for their services and sacrifice to our nation,” Gov. Nixon said. “But we can keep our commitment to our veterans by ensuring that Missouri’s veterans homes will continue to have the resources needed to provide quality care to our heroes. When funding for Missouri’s veterans homes was at risk of running out, we worked together to find a bipartisan solution. This legislation supports a sustainable and long-term plan for our veterans homes by providing a dedicated source of funding for their ongoing operations. I am proud to sign this legislation into law.”

House Bill 1731 increases the transfer amount from the Missouri Gaming Commission Fund to the Veterans’ Commission Capital Improvement Trust Fund, providing a dedicated annual funding source of $32 million for the ongoing operations of Missouri veterans homes and cemeteries. This dedicated funding source will help avoid a revenue shortfall in upcoming fiscal years and will also allow home administrators to better prepare for future home replacements or repairs, Gov. Nixon said.

The Governor had included full funding of Missouri’s veterans homes in his budget proposal to the General Assembly in January. The final legislation establishing the full funding and dedicated revenue source received strong bipartisan support in both legislative chambers. With the Governor’s signature, this legislation goes into effect July 1, 2012.

To learn more about Missouri’s veterans homes, please visit MO.gov.

Missouri community colleges to invest $20 million to train Missourians for health care careers, Gov. Nixon announces

Gov. Jay Nixon announced today that Missouri community colleges will invest $20 million through MoHealthWINS, a statewide effort to educate 4,600 more Missourians for health care jobs and careers. Under Gov. Nixon’s leadership, Missouri’s 12 community colleges and Linn State Technical College collaborated with the Missouri Department of Economic Development and the state’s Workforce Investment Boards to apply for these federal funds to retrain unemployed Missourians for jobs and careers in growing health care fields.

The colleges estimate that MoHealthWINS will provide educational opportunities for approximately 4,600 additional Missourians. The grant specifically targets unemployed adult learners who are seeking new career opportunities.

“From the moment I became Governor, we have worked closely with Missouri’s outstanding community colleges to train more Missourians for the jobs and careers of tomorrow and to get folks back to work,” Gov. Nixon said. “Missouri’s health care industry is growing quickly, and hospitals, clinics and other employers need more nurses, lab techs and other workers with the right education and skills today. By expanding educational opportunities for Missourians in these fields, we’ll open the door for employment for more folks and keep our economy growing. This is a strategic investment in the growth of our economy and the future of our state.”

Individual colleges will use these funds to develop or expand training programs in the health services and health sciences industry, which is a targeted industry under the Missouri Strategic Initiative for Economic Growth. The application focused on this industry because it offers immediate and long-term employment opportunities and relatively high-wage jobs. Training will target specific occupations within this industry, including:

n Health information technologist

n Information systems

n Certified nursing aide

n Certified medical technician

n Licensed practical nurse

n Associate nursing degree

n Pharmacy technician

n Hearing instrument technician

n Medical lab technician

n Phlebotomist

n Radiologic technician

n Maintenance technician

n Mechanical technician

These competitive funds were made available under the U.S. Department of Labor’s Trade Adjustment Assistance Community College and Career Training Grant Program. When the grant process was announced, Gov. Nixon brought Missouri’s community colleges together to submit a joint, comprehensive application. In the application, the colleges looked for ways to develop collaborative and targeted programs that would capitalize on the unique resources of each college, avoid duplication, and save money. Colleges will share equipment and faculty, emphasize online and distance learning and take other steps to expand access, improve efficiency and reduce redundancy.

Throughout the application process, senior leaders within Gov. Nixon’s administration worked closely with community college and Workforce Investment Board leaders to develop and craft the grant application. In April 2011, Gov. Nixon submitted a strong letter in support of the application, noting that this investment supplemented his “Big Goal” for higher education: Increasing the percentage of Missourians who hold a postsecondary credential from 37 percent to 60 percent by 2020. Gov. Nixon also discussed the importance of this application directly with federal leaders, including Education Secretary Arne Duncan.

“This grant is a major step forward for our community colleges in our efforts to expand opportunities for adult students across this state,” said Zora Mulligan, executive director of the Missouri Community College Association. “Throughout this process, Gov. Nixon has been a steadfast partner, and his leadership was instrumental in making our application so successful. We look forward to continuing to work closely with Gov. Nixon and with the state’s Workforce Investment Boards to turn this grant into real learning opportunities for folks in every corner of Missouri.”

Gov. Nixon will visit several community colleges in the coming days to detail specific programs that will be developed or expanded as a result of this grant.

A copy of Gov. Nixon’s letter in support of the application is available here

.

A copy of the application summary with information about specific programs is available here

.

New Law Allows Military Spouses who Relocate to File for Unemployment

A new law passed by the legislature and signed by the Governor went into effect yesterday, allowing the spouse of an active member of the military to be eligible for unemployment benefits if accompanying the spouse in the event of a military transfer.

“Missouri is the proud home of Fort Leonard Wood and Whiteman Air Force base. Each year, our military families face moves from base to base for the good of our national defense and these transfers cause unique financial pressures. In many cases, the non-military spouses may have to leave their employment due to a military transfer. Generally, individuals in Missouri that voluntarily quit their employment to move with a spouse are ineligible for unemployment benefits. This new law recognizes that spouses of military service personnel who must quit their jobs due to a military transfer are not quitting voluntarily but for the good of our nation. With this new law, the state is recognizing the sacrifices of military families who are relocating,” says Department Director Larry Rebman.

Robyn McCullem, mother of two small children, is relocating from Missouri to join her husband Private First Class Ryan McCullem in Fort Huachuca, Arizona. She has worked as a Distributor Sales Consultant for the past three years. Her last day was Friday and she filed her unemployment claim yesterday. “Being a military spouse presents its own unique challenges when it comes to having a full-time career. Leaving behind a job you love and uprooting your family isn’t voluntary when you are a military spouse,” says McCullem. “It’s nice to know our state supports those who have to make big career sacrifices and transitions to be with their soldier as they continue serving our country.”

House Bill 136 was sponsored by House Representative David Day, of Dixon. Rep. Day serves as Chairman of the House Veterans Committee. Prior to this new law, military spouses were not able to collect unemployment in Missouri if they left their job to travel with their spouse to a new duty station. Missouri is the 39th state to allow military spouses to file for unemployment benefits until they find full-time work.

Based on 2010 figures, this new law will provide benefits to more than 200 military families a year. For more information or to file for unemployment benefits, visit www.moclaim.mo.gov

New state law allows consumers to learn more about their physicians

Under a new state law, Missouri consumers can now learn more about the educational history of their doctors. House Bill 265, signed by Gov. Jay Nixon, took effect yesterday and allows the State Board of Registration for the Healing Arts to release extensive information about licensed doctors for the first time. The board's website now allows consumers to learn about medical and professional schools attended by physicians, as well as any specialties or board certifications.

In addition, more information will soon be available to the public: Under the law, any future information submitted to the board may be released if it pertains to discipline by another government agency or court-ordered limitations on a doctor's practice.

"This law is a significant step toward better transparency for patients in Missouri," said John M. Huff, director of the Missouri Department of Insurance, Financial Institutions and Professional Registration. "We always encourage consumers to learn as much as they can about the professionals they're doing business with, and that's especially important in a doctor-patient relationship."

House Bill 265

also gives more authority to the board to discipline doctors who violate the law. The board can now:

· More effectively seek an immediate suspension of a physician's license when the board believes the doctor is a danger to patients;

· Streamline the process for discipline of doctors;

· Move cases more quickly through the state Administrative Hearing Commission, which conducts hearings related to the discipline of doctors; and

· Discipline doctors for alcohol dependency, being on a sex offender registry or failing to cooperate with board investigations.

Consumers who would like to learn more about their physicians can use the licensee search

feature on the board's website at pr.mo.gov

, or they can contact the board by phone at 573-751-0098.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration
The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

Governor calls special session of the Missouri General Assembly

Democratic Gov. Jay Nixon put a job-creation package and reforms to the state's tax credits on the schedule Monday for a Sept. 6 special session of the Missouri General Assembly.

"I appreciate the work the General Assembly has already done to achieve broad consensus on these priorities, and I look forward to continuing to work with legislators on both sides of the aisle during an efficient, focused and productive session," Nixon stated in a press release calling the session.

Missing from the agenda is the roughly $150 million that the governor has pulled from the budget and reallocated for disaster relief in areas such as Joplin — an item Nixon promised in July he would put on the agenda. However, Republican State Auditor Tom Schweich released an audit last week contesting Nixon's action.

"We are aware of no constitutional or statutory authority to withhold from appropriated expenditures based on state obligations that were unanticipated at the time the budget was passed by the General Assembly," the auditor wrote in a letter to Nixon.

The governor's office said Monday that the state is already spending out of that pool of funds. In a the statement on the special session, Nixon said the topic wouldn't be formally addressed because the damage assessments are still in progress.

"Before we can determine the best method to finance our recovery obligations, we must determine the full extent of the damage," Nixon said.

Other items that made the agenda for the special session include:

• Creating tax incentives for an air cargo hub for China at St. Louis Lambert Airport;
• Giving St. Louis control of its local police force;
• Adding tax breaks for business, technology and amateur sports;
• Moving the state's presidential primary to March.

House Budget chair blisters the governor's budget director over disaster funds

The House Budget Committee grilled State Budget Director Linda Luebbering about the $150 million being withheld by the governor for disaster relief. The governor has set aside the money in anticipation of payments to Joplin and other areas affected by natural disasters without knowing exactly how much money is needed.

Committee chairman Ryan Silvey, R-Kansas City, charged Gov. Jay Nixon's action was unconstitutional because the state's constitution does not give him power to withhold funds from the budget to use the money for other purposes.

Article 4, Section 27 of the Missouri Constitution empowers the governor to withhold funds if revenue collections are running below the estimate upon which the budget was based. Silvey charges that provision does not empower the governor to cut agency allotments to reserve funds for other purposes the governor wants to finance.

Luebbering said money is needed to cover the expected costs for disaster relief in Joplin and the flooding in southeast Missouri. State obligations could include debris removal or rebuilding schools but as of now there is no breakdown of the specific costs, she said.

"We think setting aside $150 million for all these efforts is a perfectly reasonable amount of money," Luebbering said.

Silvey and other members of the committee questioned why the governor was withholding money from the 2012 fiscal year instead of using the money available in the state's Rainy Day Fund. Created in 2000 as the Budget Reserve Fund, the Rainy Day Fund contains roughly $500 million, half of which can be used for disaster relief payments.

"The Rainy Day Fund is an option," Luebbering said. "I don't know if we will use the Rainy Day Fund."

The constitution requires a two-thirds vote by the General Assembly to use the Rainy Day Fund for emergency relief. In July, Nixon said he would include disaster relief funding as part of the legislature's special session that begins Sept. 6, but in the official call issued Aug. 22, Nixon left out the issue. A special session can take up only the specific issues included in the governor's call.

Silvey questioned why the governor decided to exclude the legislature from discussing the disaster funding in the special session.

Directly facing Nixon's top budget official, Silvey repeatedly voiced frustration about the administration's approach, saying, "The governor does not want to deal with the legislature."

Luebbering said the governor made the decision to restrict expenditures to allow for more flexibility later in the year. She said the governor's office was looking at the broader constitutionality of the issue and previous court cases that established precedence for the decision to withhold funds. She could not name the cases she was referring to.

"The executive branch has the authority to balance the budget," Luebbering said.

Silvey said he did not feel a solution was reached at the meeting but was glad the committee served its purpose in questioning the decision.

"It's clear that the governor does not like dealing with the legislature," said Silvey. "It's clear that he'd rather have flexibility than go along with the constitution."

Rep. Chris Kelly, D-Columbia, told the committee the issues with the governor's budget is due to the legislature's own action in crafting a budget that left the door open for the governor to use funds for disaster relief without clear legislative authorization. He called on the Budget Committee to close the administrative flexibility in executive spending.

"It is easy to drive a truck through that little flexibility hole without seeing the damage," Kelly said.

Silvey said these issues will likely affect bills in the next legislative session.

"Our problem isn't where's the money's going but the process that it's getting there," Silvey said. "We want to see the money going where we appropriated it."

Earlier this month, State Auditor Tom Schweich sent the governor a letter questioning the constitutionality of the governor's budget withholding actions. Schweich charged that Luebbering's budget official failed to provide any information substantiating that revenue collections were falling below the original estimates upon which the budget was based.