A Moment with Mike for January 26th, 2011

At a time when our economy is showing some signs of life but our unemployment rate remains high, it is imperative that the legislature does what it can to help stimulate job growth. While it’s not possible for government to solve every problem, it is important that government is not creating additional barriers for the many Missourians who own and operate small businesses. That was the focal point of HB 45, a small business tax relief plan that became the first bill to pass out of the House this session.

HB 45, referred to as the “Big Government Get Off My Back Act” places a moratorium on fees and regulations that adversely impact small business owners. The bill would require state lawmakers to approve any federal mandates before they are implemented in Missouri to prevent costly regulations that inhibit the ability of small businesses to thrive at a time when we desperately need them.

Another vital part of the bill is aimed directly at promoting job growth. It would provide a $10,000 state income tax deduction for each new full-time job created. To qualify, the jobs would have to be good-paying jobs that at least match the county’s average wage. And for businesses that also pay half of the health insurance premiums for new workers, the deduction would double. We estimate the plan would provide a tax break of $600 to $1,200 for each job created. This bill is certainly not the total answer to fixing the unemployment issue in our state but is the first of many that will attempt to clear the way for business growth. There are well over 100,000 small businesses in our state and employees in those businesses account for 60% of employment.

Also this week we had the honor of listening to Governor Jay Nixon deliver his annual State of the State Address. The governor delivers this speech each year early on in session to give us a clear picture of his budget priorities for the next fiscal year. As we know, our budget picture has been grim in recent years and this year will be similar as we are faced with at least $500 million in cuts in order to bring the budget into balance. The $23.2 billion budget proposed by Gov. Nixon this week contains approximately $300 million in reductions in various programs.

As an educator and a member of the budget committee, I listened with great interest as our governor outlined his spending plan for both higher education and elementary and secondary education. His plan calls for approximately $53.6 million in cuts to our 4 year colleges and universities and $10.2 million in cuts to community and technical colleges. While this 7% cut will place added burden on our institutions of higher education, it is somewhat less of a cut than many expected and will hopefully be manageable as these institutions continue to examine ways to become more efficient in their operations.

The governor called for the budget for elementary and secondary education to remain at its current level. However, in a somewhat deceiving accounting procedure, he has proposed that we use a portion of the $189 million in federal funds disbursed to schools for this current fiscal year for the next fiscal year. He plans to ask schools to hold back $112 million to apply to the 2012 budget. We will spend the next several weeks examining all of these numbers and looking for the best way to spend the dollars available.

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

Casey Guernsey's Capitol Report for January 26th, 2011

Legislative session is again in full swing and we have already accomplished much in the House of Representatives. Last year’s elections were historic for the State of Missouri. To me, this was also an absolute mandate to take serious action on the problems facing our state and voters meant business. I’m happy to report that I do to! After elections we elected new leaders for the House of Representatives and immediately went to work preparing for the budget by forming an ‘interim budget committee’ on which I served. We spent November and December preparing for the full budget committee that begins next week. We also appointed Committee Chairmen a month early and I am proud to report my appointment to Chair of the House Agriculture-Business Committee. I have already set my agenda for my committee, drafted such legislation on which I will report more in the future, and I will begin that work next week. But we have lost no time passing two priorities the people of Missouri spoken upon loud and clear last year by: 1.) continuing our work overturning the federal healthcare mandate, and 2.) passing legislation protecting businesses from federal and state regulations to protect existing Missouri jobs. I fully supported both and they have been sent to the Senate.

House Resolution 39, which I co-sponsored, was adopted by the Missouri House last week calls on Missouri Attorney General Chris Koster to defend the citizens of Missouri by joining in the multi-state lawsuit against the implementation of the federal healthcare mandate passed by Congress as part of Obamacare. More than twenty other states have now signed onto the lawsuit. HR39 specifically addresses the failure of Missouri Attorney General Chris Koster to join the lawsuit given the overwhelming support Missouri voters displayed last August against this new federal mandate. HR39 goes further to proclaim that the mandated healthcare bill is a clear misuse of the Commerce Clause within the US Constitution and that the penalty for failure to purchase healthcare is unconstitutional.

I was proud that in just the second week of the legislative session, Republicans in the Missouri House of Representatives wasted no time in moving this resolution through committee and to the House floor. We were proud to stand up for the overwhelming number of Missourians who sent us to Jefferson City to take on battles just like this. One of the key amendments added on the House floor also asked Governor Jay Nixon to take action and make a stand as well. As the Chief Executive of the State and the former Attorney General, we feel it is important for the Governor to get involved on behalf of the people of Missouri. As pointed out on the House floor, it has been six months since the people of Missouri have voiced their opinion and the Attorney General and Governor have still not taken any action.

Equalization of Access Missouri Scholarship passed by House

Missouri college students in private schools will lose nearly half of the money they can receive in a state need-based scholarship under a bill passed by the House. Under the legislation, students in four-year schools would receive up to $2,850 through the program whether they attend a public or private institution. Two-year community college students would receive up to $1,300. The bill covers lower-income students who qualify under federal income standards. Currently, private school students that qualify get up to $4,600, while those who attend four-year public schools can receive up to $2,150. Two-year community college students currently receive up to $1,000 under the program. The bill also would allow students to renew their Access Missouri scholarship if they held a grade point average at 2.0 or above. Currently, students must maintain at least a 2.5 GPA for all four years to keep the scholarship. The House ultimately passed a revised approach that would postpone the implementation date for equalizing the difference between funds available for public and private school students until the 2014-15 school year. The passed version also removes the current expiration date for the program.

AARP Launches Initiative to End Abuse By Financial Industry

AARP today launched a multi-faceted initiative to pass financial reforms necessary to safeguard the pocketbooks of Americans. The initiative includes targeted local TV, radio and print ads in states; grassroots engagement; national and local research; and social media outreach.

“We know now that older Americans lost billions of hard earned dollars due to the failure of an outdated and compromised financial regulatory system,” said Nancy LeaMond, Executive Vice President at AARP. “We strongly believe that any bill the Senate passes should protect the rights of consumers first and foremost.”

AARP is calling on the Senate to put consumers first, not the financial institutions that caused the economic crisis that hurt millions of older Americans. The ad campaign highlights the consequences of the financial industry’s reckless behavior, using a jingle with lyrics including:

“Oh big banks how you’ve used us
Mistreated and abused us
Mortgage lenders too
We gave you our trust
Then you almost went bust
Turned our taxes into bonuses too
Now you want to forget
We paid off your debt
You act like you’re free of blame
But your profits they grew
While you broke every rule
We’re tired of playing your game
Stop the fat cats from putting your money at risk – tell your senators to pass financial reform now.”

Recent AARP polling has shown that Democrats, Republicans and Independents age 50-plus overwhelmingly say they want reform. More than 9 in 10 people believe financial institutions should use plain language to describe their products, be transparent about fees on accounts, disclose the costs and benefits of all products they market and that consumers should be able to know more about the financial professionals they are consulting for advice.

“AARP is calling on Senators to pass a strong bill that includes, among other protections, a strong and independent consumer watchdog, rules that forbid the financial industry from selling products they know their customers can’t afford or don’t understand, and greater transparency in an industry that has historically operated behind closed doors,” said LeaMond.

To view the ad and learn more about the initiative visit:
action.aarp.org/yourmoney or watch the ad on YouTube at http://www.youtube.com/watch?v=UpX7cui-Fl4.

For more information about AARP’s financial reform surveys visit:
http://www.aarp.org/research/surveys/money/consumers/fraud/articles/finprotect_10.html.

For more activity on financial reform, check out AARP on Twitter: @AARP and Facebook: facebook.com/aarp

McCaskill Joins Senators in Introducing Bill to Extend Health Insurance Coverage for Children of Military Families

Today, U.S. Senator Claire McCaskill joined fellow Senators Mark Udall, Mark Begich and Barbara Mikulski in introducing a bill extending health insurance for military families. The bill enables the children of active duty service members and retirees to stay on their parents’ policies until age 26.

The TRICARE Dependent Coverage Extension Act fulfills an important goal of health insurance reform legislation – allowing parents to cover their young adult children through age 26. While the health insurance reform law, which was signed in March, extended that coverage to civilian families, separate legislation was required for families insured through TRICARE – the Department of Defense health insurance program for military service members, retirees, and their families – because it is governed by a different section of the U.S. Code than civilian health care programs. The Senators’ bill is a companion to one introduced in the U.S. House of Representatives by Congressman Martin Heinrich of New Mexico.

Extending insurance to cover young Americans until age 26 is critical, especially as they make the transition into the tough job market. TRICARE currently covers children to age 21, or 23 if they are full-time college students. The TRICARE extension will give dependent young adults without employer-provided health insurance the opportunity to pay a reasonable premium and stay covered until they are 26.

“In a tough economy, young people may not be able to find a job with decent benefits through no fault of their own, and the children of military service members are no different,” Senator McCaskill said. “Our men and women in uniform and their families make incredible sacrifices in defense of our country – we’ve got to make sure we provide them with the best health care coverage we can.”

“Members of our armed forces and their families make tremendous sacrifices for our nation, and they deserve benefits that will help keep them healthy and secure,” Senator Udall said. “Service members around the world worry about the health and financial security of their families back home. Extending existing health insurance coverage to children will help ensure we’re doing our part to provide some peace of mind to military families.”

“Being able to cover dependents on your health insurance plan up to age 26 is a key piece of the health insurance reform legislation and will allow thousands of Alaskans to keep their children on their policies saving families the extraordinary costs that can be incurred for medical treatment,” Senator Begich said. “Extending that same benefit to our military families is the right thing to do as we continually strive to make sure we show appreciation for their service to our country.”

“This is the right thing to do for the men and women who have stood sentry protecting our freedoms,” Senator Mikulski said. “If health care reform means that the kids of hedge fund managers can stay on their parents’ health insurance until they’re 26, kids in military families should be covered to age 26 too. I am honored to join Senator Udall and my Senate colleagues in introducing this bill to fix this health care reform bill error. We have our marching orders. We will fight to pass this bill.”

“With each individual who generously dedicates their life to military service, there is a significant impact on those closest to them. We know this especially well in New Mexico, where we have a long and proud tradition of military service,” said U.S. Representative Martin Heinrich (NM-1), who introduced H.R. 4923, the TRICARE Dependent Coverage Extension Act in the House last month. “Allowing parents to provide health coverage to their dependent adult children is just one of the many small things we can do to show our military families how much we appreciate them and honor their service to our country.”

McCaskill: We Must Continue to Help Keep Food on the Table for Thousands of Missouri Families

During one of the worst economic recessions in decades, thousands of hard-working Missourians have lost their jobs at no fault of their own, but must continue to find ways to provide for their families. That’s why U.S. Senator Claire McCaskill yesterday voted to extend unemployment insurance and COBRA health insurance aid, lending a helping hand to many families struggling to make ends meet.

“We were able to pass a crucial emergency extension of programs that are helping keep food on the table for thousands of middle class Missouri families fighting to stay afloat during these tough economic times,” Senator McCaskill said. “For those who haven’t been able to find new employment during this recession, this help could mean the difference between barely making ends meet and foreclosure.”

After a series of objections from Senate Republicans, Democrats were successful in paving the way for a vote on an emergency extension through the end of May of the two programs. The programs expired at the end of March. The 60-day extension of unemployment insurance and COBRA passed with a bipartisan vote of 59-38.