Brad Lager's Capitol Report: The 2013 State of the State Address

Thomas Jefferson, one of our most beloved founding fathers, once said, “My reading of history convinces me that most bad government results from too much government.”  This past week as Governor Jay Nixon delivered the 2013 State of the State address to a joint session of the Missouri General Assembly that statement came to mind as the Governor laid out nearly $26 billion in state government spending.  The simplest way to sum up his plan would be: “spend all the state money, spend all the federal money, borrow some more money and spend it too.” 

During his first four years in office, Gov Nixon proposed budgets that were both fiscally conservative and fiscally responsible.  This year, the Governor is proposing we move in a different direction.  Under the proposal he presented last week, our state government would experience the largest spending plan in history.  On top of that, he is proposing that Missouri move forward with the implementation of the federal healthcare expansions which could add as many as 400,000 new Medicaid recipients and carry a price tag in excess of $1 billion.  And if those were not enough, he has proposed that the General Assembly increase Missouri’s state debt by an additional $1 billion to build new government buildings.

While I disagree with the vast majority of the Governor’s new spending, not everything he has proposed is bad.  For example, I agree with adding more than $160 million to our public schools.  This includes increases for elementary, secondary, higher education and a substantial increase for early childhood education.  I agree with increasing funding for job training so that members of Missouri’s current workforce have the opportunity to keep their skills at a level that increases employment opportunities.  And I agree that we must reform Missouri’s broken tax credit system if we are serious about making our overall tax code fairer and less burdensome.

The good news is that Missouri’s economy is slowly starting to grow.  The bad news is that there are many people in Jefferson City who have forgotten that economic prosperity is driven by the private sector and not bigger government programs.  As we work through the 2013 legislative session, I will do everything I can to hold the line on spending, reduce regulation and mitigate unfair litigation.  With a smaller, less intrusive state government, we can have a more vibrant and robust private sector which will lead to greater economic growth and prosperity.

As always, please feel free to call, email, or write with your ideas or concerns.  The Capitol number is (573) 751-1415, my email is brad.lager@senate.mo.gov and my mailing address is Room 422, State Capitol Building, Jefferson City, MO 65101.

Start saving in February

Even if you have a small paycheck and big bills, you can make a start on saving.

 

America Saves Week is Feb. 25-March 2, but University of Missouri Extension and partner organizations are using the entire month of February to encourage individuals to set a goal and make a plan to save.

 

Throughout the month there will be events around the state to promote good saving behavior and help people review their own saving habits, says Brenda Procter, MU Extension personal financial planning specialist.

 

“Little things we buy can add up fast,” Procter said. “Tracking every penny you spend for a couple of weeks can surprise you. Can you change one small habit and find $2 a day to put aside? If so, you can save $730 in a year.”

 

Missouri Saves is part of America Saves, a yearly national campaign involving more than 1,000 non-profit, government and corporate groups to help Americans save money, reduce debt and build wealth.

 

Missouri Saves invites individuals to sign up to be a Missouri Saver at www.missourifamilies.org/mosaves.

 

“Saving takes a commitment,” she said. “If you sign up to be a Missouri Saver, we’ll send you a small tool to help you find money to keep your saving commitment.”

 

According to annual surveys commissioned by America Saves, fewer U.S. households report they have adequate emergency savings, save enough for retirement, and spend less than their income and save the difference.

 

Just thinking about saving can be daunting if bills seem to pile up faster than your bank balance, but saving money and reducing debt may be easier than you think.

 

America Saves breaks it into three simple steps: “Set a goal. Make a plan. Save automatically.”

 

Set a goal. Visualizing a concrete savings goal—whether it’s paying off a credit card, making a down payment on a home or building a nest egg for retirement—can make it easier to stay motivated and avoid the temptation to tap savings to buy things you don’t need.

 

Make a plan. Once you have a goal in mind, you’ll need a plan for how you are going to reach that goal. Keeping track of your spending and making a budget will let you know where your money is going each month. That will help cut down on unneeded expenses so you can save the difference.

 

“Small changes really can make more difference than you think,” Procter said.

 

For example, if your workday routine includes buying a $1.25 soda from the vending machine, kicking that habit would save you more than $300 per year. Going out for lunch each day might set you back $1,500 or more each year. Bringing your lunch to work instead will help you bulk up your savings and, as an added bonus, maybe even trim your waistline.

 

Save automatically. It can be hard to regularly put aside money for savings. But once you have a savings plan in place, there are ways you can make saving automatic. For example, many banks and employers provide opportunities to automatically put part of your paycheck into a savings account, retirement plan or a college fund for your children.

 

“For most people, saving automatically is the easiest way to put money aside,” Procter said. “You don’t have to remember to move money to savings. You set up your own savings habit that takes care of itself by authorizing a deduction from your paycheck or bank account.”

 

For more information, go to www.missourifamilies.org/mosaves, where you can find a variety of resources, including articles, publications, videos, and online tools for budgeting and financial planning. There is also a clickable map to find an extension family financial education specialist in your area. Contact your local MU Extension center to learn about educational opportunities.

 

Community leaders plan to deliver letters calling for Medicaid expansion

An organization of religious leaders and community activists -- the Missouri Medicaid Coalition -- presented lawmakers with more than 1,500 letters from concerned citizens.

The letters were delivered to the office of Rep. Sue Allen, R-Town & Country, on Thursday, Jan. 31. Allen serves as the chairwoman of the House Appropriations Committee on Health, Mental Health and Social Services.

Members of the coalition are calling for state lawmakers to expand Missouri's Medicaid rolls to provide coverage for 260,000 Missourians without health insurance, especially single parents and childless adults.

Retired Jefferson City Rev. John Bennett said that Medicaid expansion is a moral obligation for Missouri legislators. Bennett said his main concern lies with Missouri's uninsured children.

"There is overwhelming moral evidence that Medicaid expansion is necessary for Missouri," Bennett said.

At his State of the State address on Monday, Jan. 28, Gov. Jay Nixon touted the expansion as the right thing to do for the state. The Democratic governor also included funds for expanding Medicaid in his recent budget proposals. The Department of Social Services is looking at one of the largest percentages of budget increases with this new proposal.

"Providing health care for an estimated 300,000 more Missourians -- men, women and children -- who currently have no health insurance is the smart thing to do, and it's the right thing to do," Nixon said in a statement.

House panel looks at requiring photo ID to vote

Missouri House Republicans are once again pushing a constitutional amendment that would require Missouri voters to show valid, state-issued photo identification before they can cast full ballots in the state's elections.

In 2011, the legislature approved a state Constitutional amendment to authorize the legislature to require photo IDs to vote, but a court battle prevented the measure from being placed on the statewide ballot.

Republicans argue that requiring photo identification will prevent voter fraud and say that such credentials are already needed to do many everyday things, such as rent a movie from a video store.

But Democrats, as well as advocates for people with disabilities, the elderly and  minorities, say the law would effectively block those voters from the ballot box by requiring them to provide documents they don't have, such as a birth certificate, or by imposing prohibitive costs, such as transportation to a state license office or the cost of a day off from work to get the identification.

Missouri lawmakers debate legislation that would mandate reporting of child sexual abuse

In the wake of the Jerry Sandusky trial, Missouri legislators are continuing to debate what defines a criminal in sexual abuse cases. Sen. Eric Schmitt, R-St. Louis County, has sponsored a bill that would mandate that a witness of child sexual abuse come forward or face criminal charges. Schmitt said that the ultimate goal of this bill is not to criminalize people who are witnesses, but protect children in Missouri from sexual abuse.
"I think at the end of the day, what it comes down to for me is doing the right thing and expecting our neighbors to do the same to protect our kids," Schmitt said.
Current law states that only certain professionals who deal with children have a legal obligation to report cases of child sexual abuse.
Schmitt's bill provides that all people above the age of 18 would be required to report these cases to law enforcement. Those who fail to report a child sexual abuse case would face one year of jail time or a $1,000 fine.
Sen. Rob Schaaf, R-St. Joseph, said only reasonable people should be held liable.
“I could see in my own mind somebody saying, ‘well I didn’t think what I saw was sexual abuse’ and the court saying ‘oh no, you’re going to jail,” Schaaf said.
Sen. Jolie Justus, D-Jackson County, questions the idea of turning a bystander into a criminal, especially in cases concerning parents having to report children.
"Though the child is in the system getting the assistance that they need, we need to consider everything that goes with it," Justus said. "Is the child going to be removed from the care of the parent and put into the foster care system? Is the child going to have to go on the sex offender registry? All of those things put parents and guardians in a really difficult place."
A Missouri task force was created last year that focused on the prevention of child sexual abuse. This group, titled the Task Force on the Prevention of Sexual Abuse of Children, conducted four public hearings last year and developed a report of their recommendations on how to prevent child sexual abuse.
The task force recommended that the state amend the mandatory reporting law, but did not make a witness liable to face criminal charges for failing to report.
Emily Van Schenkhof, task force member and deputy director of Missouri Kids First, testified against the new bill at Wednesday's hearing.
"We did consider something similar to what is in Sen. Schmitt's bill," Van Schenkhof said. "However, since most instances of child sexual abuse are not witnessed, it would not have a significant impact on child welfare in the state and thus they didn't make that recommendation."
Van Schenkhof also said that the most common people who witness child sexual abuse are other juveniles who, under Schmitt's bill, would not be required to report the case.
Though Schmitt said his bill is tailored to the specific situation of when an adult witnesses the sexual abuse of a child.
"If you're looking at this specifically it's probably pretty rare," Schmitt said. "Yet to the extent it does occur I think it's something we probably want people to report."

---

Senator proposes gun safety programs for educators and students

The first sponsor of a gun safety measure in the 2013 Missouri legislative session said the public is being confused about what he is intending to do.
One day before the Connecticut shooting on Dec. 14, Sen. Dan Brown, R-Rolla, filed a measure intended to create gun safety education programs for school faculty members and students.
The proposal is twofold, creating the Active Shooter and Intruder Response Training for Schools Program for educators and using the National Rifle Association's Eddie Eagle GunSafe Program for first grade students. 
The bill would place the training program in all Missouri public and charter schools. The goal of the program is to enable school employees to respond to dangerous situations such as an armed intruder and requires eight hours of initial training as well as four hours of continuing training. School faculty would also be required to participate in annual intruder response drills.
Rep. Stacey Newman, D-St. Louis, doubts that any person could prevent fatalities when confronted by a shooter.
"If someone comes in my door right here with a semiautomatic weapon that can fire many rounds a minute, there's nothing I can do. There's nothing we can do," Newman said.
Brown said the term "gun safety" has caused confusion, leaving some worried that students would be taught how to handle a gun. 
"I want to stress that this bill has nothing to do with teaching kids how to shoot or gun safety. It's a gun safe program," Brown said.
Brown said the difference between these terms is nuanced but essential. Students would be taught who to tell should they come across a firearm, rather than how to handle it.
Brown said that schools bear a responsibility for their students' safety, and that the bill is a necessary step. In addition to the training program, the bill would also force schools to teach the NRA's Eddie Eagle GunSafe Program to first grade students. The program employs an animated video reminiscent of a childrens television show. It's tagline: "If you see a gun, STOP! Don't touch. Leave the area. Tell an adult."
"We teach citizenship, we teach social skills. I think we need to teach children what to do if they see a firearm," Brown said.
Brown cited his five grandchildren who attend public schools, as well as two family members that teach at public schools, as one of the reasons why he felt the bill was necessary. However, Newman questioned his motives due to his ties with the NRA.
"It's to increase gun sales," Newman said. "If you're going to teach...young people in grade schools about firearms, you're encouraging them to use them, to have their parents purchase them."
Newman, who has been involved with the White House gun control initiative and recently hosted a forum with medical and law enforcement professionals, believes that Brown's measure will do little if anything to curb gun violence and accidents. Newman said experts at the forum said that in order to keep children safe from guns, they have to be taken out of the house.
"We've had law enforcement who have children who have found their weapons in their home, and of course training is all there. Training doesn't do a whole lot when your child's been shot," Newman said. "The advice of the professionals...(is) that weapon in your home is going to increase your chances of fatality."
Brown's bill is not the only one that has something to add to the nation's conversation on guns. Some House and Senate Republicans have sponsored measures that would nullify proposed federal gun regulations by making it a crime to enforce them.  A bill in the House would also exempt firearms that are made and remain in Missouri from these same regulations. Other bills, sponsored mostly by Democrats, would enforce gun safety measures, such as making it a crime to fail to lock up a firearm that is not in use.

---

Agriculture Secretary Vilsack Announces Expansion of Refinancing Program to Help Missouri Rural Homeowners

Agriculture Secretary Tom Vilsack has announced that USDA is adding 15 more states and the Commonwealth of Puerto Rico to a pilot program that enables current USDA borrowers to save money on housing costs by refinancing their mortgages with lower interest rates. USDA Housing Administrator Tammye Treviño made the announcement on behalf of Secretary Vilsack.

   “USDA’s expansion of this program will help more rural borrowers refinance their mortgages to reduce their monthly payments and ease their financial burdens,” Vilsack said. “As our economy continues to recover, this program will enable rural families living in USDA-financed homes to take advantage of historically low interest rates.”

   USDA unveiled the initiative almost one year ago. It initially included borrowers in 19 states hardest hit by the downturn in the housing market. To date, 3,394 rural borrowers have benefited from the USDA refinancing pilot program.  These loans total nearly $453 million.

   The pilot expands upon USDA’s ongoing effort to assist rural homeowners holding loans made or guaranteed by USDA Rural Development. In 2010, USDA established an aggressive modification policy for Guaranteed Loans that helps homeowners who are delinquent on their mortgages. These homeowners can lower their monthly payments through a loan modification that re-amortizes their payments over a term of up to 40 years, lowers their interest rate, or both. USDA also has a “Mortgage Recovery Advance” program in which the Department provides guaranteed lenders up to 12 months of mortgage payments on behalf of borrowers who have fallen behind on their payments due to job loss or other hardships.

  Missouri Rural Development State Director Janie Dunning commented, “We recognize the importance of having a place to call home.  We also recognize some of our borrowers are struggling with making their house payment because of economic events which are beyond their control. Allowing Missouri rural borrowers to refinance their mortgages will assure families can remain in their homes and communities’ housing stock can remain strong.”

   Participants in the pilot refinancing program are required to meet income eligibility requirements, and must have made their mortgage payments on time for 12 consecutive months.  Borrowers participating in USDA’s Single Family Housing Direct and Guaranteed loan programs are eligible to participate. Borrowers do not have to obtain new credit reports, property inspections or home appraisals. Refinanced loans must be at least one percent below the original interest rate. Terms cannot exceed 30 years. No cash out is permitted to the borrower.

   With the announcement, the pilot is being expanded to include residents in the following states: Alaska, Arkansas, Colorado, Idaho, Kansas, Missouri, Montana, North Dakota, Oklahoma, South Dakota, Texas, Utah, Washington, West Virginia, Wisconsin, and the Commonwealth of Puerto Rico. These states are being added because they have been identified as having a very high proportion of persistent poor counties, that is, those with a poverty rate of at least 20 percent in each of the last four U.S. Censuses. The Commonwealth of Puerto Rico has been included due to a poverty rate of at least 45 percent in recent years, according to a U.S. Census Bureau report.

   The original states in the two-year pilot program are:  Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee. The performance of the pilot will be reviewed after two years to evaluate whether to continue, terminate or make the refinance program permanent.

      Rural Development’s housing loans and grants make a significant difference in the lives of thousands of rural Americans across the nation. These investments boost rural economies and create jobs. The pilot refinance program complements President Obama’s continuing efforts to help responsible homeowners and boost the nation’s housing market. The measures the President and USDA are taking will help stabilize communities and help middle class families across the country.

   President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.

   USDA, through its Rural Development mission area, has an active portfolio of more than $176 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.