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.

Obituary -- Shirley Stevenson 1933-2022

Shirley L. Stevenson, 89 of Burlington (IA) died Saturday, August 20, 2022 at Southeast Iowa Regional Medical Center.

Born February 25, 1933 in Hopkins, MO she was the daughter of Dale and Doris Wilson Owens. She married Robert M. Stevenson on December 13, 1953 in Hopkins, MO. He died June 24, 1978.

Over the years Shirley worked for Gray’s Insurance in Missouri, the Auditor’s office at the Des Moines County Courthouse and for Martha Brown Clothing, Ltd.

Shirley attended Asbury United Methodist Church in Burlington and was a past president of the Ruth Circle. She was involved with the VFW in the 1970’s and she enjoyed spending time with her family in Northwest Missouri every 4th of July.

Survivors include two daughters Karen Stevenson and Linda Hanger of Burlington; one son Kirby Stevenson of Moline, IL; three grandchildren Ashley Johnson of Sioux City, SD, Carlee Swanson of Blandinsville, IL and Bryce Hanger of Raritan, IL; six great grandchildren Carson, Kinsley, Kendall Julissa, Daniel and Jenna; sister Betty (Weldon) Dowden of Bartlesville, OK and brother Terry (Melodee) Owens of Hopkins, MO.

She was preceded in death by her parents, husband, and three brothers Donald Owens, Wayne Owens, and Larry Dale Owens.

Per her wishes, cremation has been accorded and entrusted to Lunning Chapel.

There will be a graveside service at 1 pm Saturday, August 27, 2022 at Memorial Gardens in Maryville, MO.

Rowen Family Holds Annual Reunion

Huey and Kay Rowen had their annual Family Reunion at Mozingo Lake Cabins at Maryville from August 18th to 21st. They were so blessed by beautiful weather and had 48 of their family of 54 able to attend. Only their grandson Nathan Hann and his wife Mallory and four children, who have recently been stationed in Hawaii for the next three years, were unable to come.

Kathy and Jeff Fletchall brought granddaughters Audrey, Macy, and Bryce Fletchall from Wentzville (MO). Dallas and Kelsey Fletchall brought twin sons Calvin and Thomas, age 7, from Fulton (MO). David and Robin Summa brought daughter Erin Vernon and her three children, Lael, Eliana, and Adonias, ages 7, 4, and 7 months, from Smithville. Valerie and Marty Partch, also from Smithville, brought daughters Raegan, Kennedy, and McKinley, ages 9, 7, and 5. Matthew and Malorie Summa brought Sky and Stone, ages 6 and 3 from Kansas City. Suzanne and Scott Harris came from king City. Kandel and Nick Wood of Weatherby Lake (MO), brought sons Landyn, Peyton, and Carson, ages 18, 15, and 10. 

Jordan and Shelby Bottiger of St. Joseph brought Rosalind Kay, age 2. Michael and Tanya Hann of Centralia (MO) brought Kirsten, who is in her last year of grad school at MU in Columbia (MO). Brooke and Andrew Van Hulten of Centralia brought Kylie and Ace, ages 9 and 5. Clint and Denise Rowen brought Alex, Gigi, and Abby, ages 17, 15, and 10 of Sheridan. God blessed us so much to be able to have a great weekend together.

North Star Clients Growing in Worth County

North Star’s presence in Worth County has been growing over the past year. North Star provides services for victims of domestic violence, sexual assault, and rape free of charge. All services are confidential and available to both men and women. They are available at (660) 562-2320. All services are provided 24 hours a day, seven days a week. Executive Director Linda Mattson gave a presentation Monday to the Worth County Commissioners updating them on how the organization was growing.

In 2020, North Star only served five clients from Worth County. But in 2021, they were able to get a grant for a full time advocate for Worth and Gentry Counties, and a local board member, Amy Jackson, was appointed to the board. In 2021, they served 13 clients. 

In addition, they offer education on what constitutes abuse as well as a support group. People can show up at their door at 1220 East 2nd in Maryville if necessary. They are funded through grants and through private donations. 

They have partnered with the Tri-County Health Department, Mission Possible, the Worth County Sheriff, and they have helped house people who needed a place to stay. If necessary, they can help financially and help clients fill out orders of protection. Mattson said that Sheriff Scott Sherer has gone out of his way to check on the wellbeing of clients. 

As an organization, North Star spent $50,000 on clients last year, and they have never turned anyone down.

Kim Mildward updated the commission on the progress with the broadband program, spent for with COVID relief money. The county voted to match $39,242 out of the $392,426 that United Fiber is spending to bring broadband to the county. Funds are paid for out of the ARPA funds that the county received. The county will not be on the hook until the program is officially funded. The county will also sign a letter of support for the United Fiber project. 

State construction needs were discussed by the commissioners. Among projects mentioned were Route M from 169 to Denver, Jay Creek just west of Grant City, and the Mullock bridge near Oxford. 

The county will be getting new equipment in December. Delivery of a new grader will take place around Christmas, while delivery of a new excavator will be around December 9th.

Opinion -- Inflation Reduction Act Cuts Health Care Costs for Missourians

By the White House

President Biden believes that health care should be a right, not a privilege. Every American deserves the peace of mind that quality, affordable health insurance brings, and Americans facing illness should never have to worry about how they are going to pay for their treatment or face a choice between buying life-saving medications and putting food on the table. 

The Inflation Reduction Act of 2022 will lower health care costs for millions of Americans and put money back in the pockets of American families and seniors. The Act will cap prescription drug costs for hundreds of thousands of Missouri Medicare beneficiaries, reduce health insurance premiums for hundreds of thousands of Missourians by about $820 per year on average while expanding coverage to about 29,000 Missourians, and cap insulin co-payments for the tens of thousands of Missouri Medicare beneficiaries that use insulin. 

Cutting Prescription Drug Costs

Americans pay two to three times what citizens of other countries pay for prescription drugs. For some drugs, U.S. prices are even higher than that. For example, a GAO study found that Spiriva, used to control asthma and used by about 700,000 Medicare beneficiaries in 2020, had an estimated U.S. net price of $250 in 2020 and cost between $30 and $52 in France, Australia and Canada. Myrbetriq, used to control overactive bladder and used by over 600,000 Medicare beneficiaries in 2020, had an estimated U.S. net price of $164 and cost $43 in Canada. The Inflation Reduction Act finally takes on this problem by allowing Medicare to negotiate prices for high-cost drugs. It also provides seniors and people with disabilities who have  Medicare coverage with new protections against unaffordable prescription drug bills. 

• Protecting Hundreds of Thousands of Missourians from Catastrophic Drug Costs by Capping Medicare Beneficiary Out-of-Pocket Costs in Part D at $2,000. Currently, Medicare beneficiaries with conditions such as cancer, multiple sclerosis, and lung disease  can face thousands of dollars in out-of-pocket prescription drug costs, and millions of people in Medicare struggle to afford their medications. The Act will require Part D plans to offer improved financial protections that would phase in starting in 2024, with the $2,000 out-ofpocket cap taking effect in 2025. Each year, that will benefit about 34,000 Missouri Medicare beneficiaries who would otherwise have out-of-pocket costs above the cap, according to estimates from the Kaiser Family Foundation (KFF). And, for the first time, all 966,000 Missourians with Medicare Part D will have the peace of mind of knowing their pharmacy costs are capped.

• Saving Billions of Dollars for Seniors and People with Disabilities and the Federal Government by Allowing Medicare to Negotiate Prices for High-Cost Drugs. By bringing down the cost of these drugs, the legislation will save billions of dollars for both Medicare beneficiaries, who will see reduced out-of-pocket costs, and the federal government. Nationwide, KFF estimates suggest that some 5 to 7 million beneficiaries each year use the types of high-cost drugs that would be subject to negotiation and could see reduced cost sharing as a result.

• Addressing Rapid Prescription Drug Price Growth in Medicare. The Act requires companies to pay Medicare a rebate if they increase drug prices faster than inflation. That will achieve billions more in savings for the federal government and will further reduce outof-pocket costs for Medicare beneficiaries, starting in 2023.

• Saving Missouri Medicare Beneficiaries Money by Capping Insulin Copays at $35 per Month. Drug manufacturers have raised insulin prices so rapidly over the last few decades that some Medicare beneficiaries struggle to afford this life-saving drug that costs less than $10 a vial to manufacture. Starting in 2023, the legislation will cap the out-of-pocket cost of insulin for Medicare beneficiaries at no more than $35 for a month’s supply. Some 69,000 Missouri Medicare beneficiaries used insulin in 2020.

• Providing Extra Help Paying for Drugs for Missouri Medicare Beneficiaries with Low Incomes. The Act expands eligibility for full Part D Low-Income Subsidies – known as Extra Help – in 2024 to low-income beneficiaries with incomes up to 150% of poverty and modest assets. Currently, individuals with incomes between 135% and 150% of poverty only receive partial help, meaning that they still pay premiums and face more significant co-pays. About 11,000 Missouri Medicare beneficiaries received partial Extra Help in 2020 and could be helped by the expansion of income eligibility for full Extra Help, KFF estimates. 

• Saving Tens of Thousands of Missouri Medicare Beneficiaries Money by Ending Cost Sharing for Vaccines in Part D. While Medicare Part B covers vaccines such as the flu vaccine at no cost-sharing, patients receiving vaccines covered under Medicare Part D, such as the vaccine for shingles, must pay for a portion of the cost out of pocket. Starting in 2023, the legislation will require $0 cost-sharing for vaccines for Medicare Part D beneficiaries. Some 73,000 Missouri Medicare beneficiaries received a Part D vaccine in 2020, and that number is likely to rise as those vaccines become more affordable.

Lowering Health Insurance Premiums and Expanding Coverage

Since their creation in 2014, the Affordable Care Act (ACA) marketplaces and premium tax credits have played a critical role in providing affordable, quality health insurance coverage for people who don’t get health insurance through their jobs. As the ACA’s major coverage expansions took effect, the share of Missourians without health insurance fell by 32 percent. But because premium tax credits weren’t adequate for people with lower incomes, and weren’t available to middle-income people with high premium burdens, some people still couldn’t afford health insurance coverage or paid for health insurance at the expense of meeting their families’ other basic needs. 

President Biden promised to build on the Affordable Care Act by making premium tax credits more generous and lowering health care premiums for working families. The American Rescue Plan (ARP) kept that commitment by improving premium tax credits, and helped the U.S. reach its lowest uninsured rate in history. But those improvements were set to expire at the end of 2022. The Act continues those critical improvements through 2025, preventing premium spikes this January. Continuing these ACA improvements means: 

• Saving Hundreds of Thousands of Missourians about $820 per Year. About 250,000 Missourians with Marketplace coverage are saving an average of about $820 annually from the ARP subsidies that the Inflation Reduction Act would continue. Those savings increase to thousands of dollars per year for some middle-income older people who would otherwise face very high premium burdens. Among those benefiting the most from these affordability improvements are:

o Missouri small business owners and self-employed people. ACA coverage plays a critical role in providing affordable health coverage to 49,000 small business owners and self-employed adults in Missouri, Treasury data show. In fact, this population makes up 25 percent of ACA marketplace enrollment among working-age Missourians. 

o Middle-income older people who have retired or don’t have health coverage through their jobs. For example, a 60-year old Missourian with income of $60,000 would pay about 19 percent of income for benchmark health coverage without expanded premium tax credits, which cap premiums at 8.5 percent of income. 

• Allowing Tens of Thousands of Missourians to Gain Coverage. About 29,000 more Missourians will have health insurance next year compared to without the Inflation Reduction Act, according to HHS projections. The Act’s coverage expansions will:

o Improve health outcomes and likely save lives. Health insurance improves access to care and health, a large body of research finds. That includes a randomized trial finding that expanding Marketplace coverage saves lives: mortality fell among people  who gained Marketplace coverage due to randomized outreach. 

o Improve financial security. Health insurance reduces medical debt and improves credit scores and access to credit, research finds – making it possible for people to buy a home or take out an auto loan that in turn allows them to get or keep a job. Health insurance also reduces the frequency of bankruptcies and evictions, with one study finding that access to premium tax credits significantly reduces the share of people delinquent on rent or mortgage payments. 

o Narrow disparities in health coverage and access to care. Continuing the ACA improvements will reduce uninsured rates for all demographic groups, but the uninsured rate will fall disproportionately for Black people – narrowing existing gaps in coverage, Urban Institute researchers estimate. Narrowing gaps in coverage also narrows gaps in access to care, research finds. 

Hy-Vee Now Offering Flu Shots

Hy-Vee, Inc. announced Monday that the flu vaccine is now available inside its more than 270 Hy-Vee Pharmacy locations, with no appointment or prescription necessary. Drive-thru flu clinics will also be offered at Hy-Vee Pharmacy locations throughout the company’s eight-state region on select days. 

The Centers for Disease Control and Prevention (CDC) recommends individuals 6 months of age and older get a flu vaccine each year to prevent getting and spreading the flu virus.

Australia is nearing the end of its worst flu season in five years, according to a report from the country's Department of Health and Aged Care1, a sign that flu activity in the U.S. could reach pre-pandemic levels during the 2022-2023 season. 

Hy-Vee pharmacists conduct a screening process prior to vaccination to ensure each individual is receiving the most beneficial flu vaccine for their health. Both regular- and high-dose flu vaccines are available at Hy-Vee Pharmacy locations. Medicare and most insurance plans cover the flu vaccine and other immunizations at no charge. At this time, all vaccine patients must wear a mask during their vaccination, according to CDC guidelines.

Currently, flu vaccines are available without a prescription during regular pharmacy hours to patients 6 months and older at Hy-Vee’s Iowa, Nebraska and South Dakota locations; or 3 years and older in Illinois, Kansas, Minnesota, Missouri and Wisconsin locations, according to the U.S. Department of Health and Human Services’ PREP Act.

Patients 12 years and older may also receive their COVID-19 vaccine or booster at the time of their flu shot at their local Hy-Vee Pharmacy. Patients seeking both a flu and COVID-19 immunization should notify their Hy-Vee pharmacist upon arrival.

Each patient who receives a flu vaccine at a Hy-Vee Pharmacy can earn a 20-cent Hy-Vee Fuel Saver + Perks reward, which can be redeemed at any Hy-Vee Fast & Fresh, Hy-Vee Fast & Fresh Express or Dollar Fresh Market fuel location. See www.Hy-Vee.com for details. Restrictions apply. 

Hy-Vee will also be offering workplace vaccination clinics using its fleet of Hy-Vee Healthy You Mobiles and Hy-Vee Health mobile trailers. Employers who wish to schedule an onsite clinic for their employees can email vaccineclinic@hy-vee.com for more details. Clinics are typically held September through November.

Worth County School Board Approves Substitute List for 2022-2023

The Worth County School Board approved the substitute teacher list for the 2022-2023 school year. Teachers named were Dana Auffert, Jeshua Blaine, Janice Borey, Rachel Brown, Sue Cantanzareti, Colleen Combs, Barb Dannar, Josephine Deen, Kera Galanakis, Cody Green, Mason Hawk, Mollie Hardy, Amy Jackson, Janet Kinsella, Judith Matteson, Ashley Moser, Kristin New, Trisha Ross, Jan Ruckman, Jessica Sanders, Debbie Sherer, and Becky Thompson. Named as a custodial maintenance sub was Mark Fletcher.

The board held their annual tax rate hearing and voted to leave the tax rate unchanged at $3.52 per $100 of assessed valuation and the debt service levy at 25 cents per $100 of assessed valuation. The board approved the prepayment of $70,000 in current bonds, which will save the district $3,200 in future interest expense. The prepayment was necessary in order to maintain the 25 cent debt service levy. 

The school had two negative account balances from the previous school year. High School Annual had a negative account balance of $720.51 and the National Honor Society had a negative account balance of $113.81. The school will transfer non-designated funds from the Fund 60 fund balance to eliminate the negative account balances.

The board voted to set the tuition rate for nonresident students of the district at $5,314.87. This is the rate that must be paid by nonresident students unless waived by the board. 

Enrollment at the elementary is 151 students, up 11 from last year. Overall enrollment at the school is up 8 from last year. Kindergarten has 28, 1st grade 17, 2nd grade 21, 3rd grade 21, 4th grade 18, 5th grade 28, and 6th grade 18.

Elementary Principal Chuck Borey reported that certified staff and paraprofessionals attended the Emotional Poverty Workshop at King City. Teachers are getting ready to start the new year and teachers have been working on their classrooms for the last two weeks. The school had their open house on Wednesday evening. Picture day is scheduled for Tuesday, August 30th. 

Curriculum Director and Athletic Director Josh Smith reported that all teachers have been provided with current Missouri Learning Standards. Special Ed and Title teachers have attended training.

Athlete development programs have been held for all athletes grades 7 to 12. Band also held camps. Several improvements have been made at the softball field.

Softball has 16 varsity players out this year. Junior high has 10 players out. Football has 27 players out, 22 from Worth County and 5 from Northeast Nodaway. Junior high has 16 players, 12 from Worth County and 4 from Northeast Nodaway. Girls Golf has 8 players. High school cheer has 8 members and junior high has 8 as well. Currently, the school says that the district has high enough participation in junior high activities to remain a seventh and eighth grade only school.

Keelin Engel, Tate Welch, Jill Hardy, Nate Adwell, Anna Spainhower, EmiLee Brown, Wyatt Abplanalp, Braidy Hunt, and Megan Cassavaugh will receive their American FFA Degrees in October at the National FFA Convention. FBLA peaches have been delivered, while the FFA had their Back to School Bash on August 20th.

Principal Jon Adwell reported on the professional development that staff have been engaging in, including work on mathematics curriculum and resources, reading, instruction training, and other trainings during the summer. Church groups have been coming in and feeding the teachers.

The board voted to renew the banking agreement with Great Western Bank made in 2019, now First Interstate Bank. First Interstate is honoring the agreement. The agreement was for three years, with options to renew in 2022-2023 and 2023-2024. The board voted to exercise its option to renew. Board member Amber Monticue abstained from the vote.

Superintendent Chris Healy reported that assessed valuation for this year was $33,184,876, an increase of 11%. This will result in increased local tax revenues in the district. Since most of the increase was from personal property, the school does not have to roll back its levy. Transportation revenues will be significantly higher for this year, thanks to legislative action. The school will apply for electric buses through a grant program from the EPA. Most future bus grant programs will be electric buses. 

The DESE will come to the school and evaluate the Comprehensive School Improvement Plan.

The school plans to make recommendations on the Career Ladder Program, which was resurrected by the legislature this year. The school can apply for three levels of funding. After two years of service by teachers, the school can apply for up to $1,500 in extra pay for teachers for putting in extra hours to help tutor students. For three years, the school can apply for up to $3,000. For five years, the school can apply for up to $5,000. The program requires a 40% match at the local level. The school could save costs by tying in existing tutoring programs. Superintendent Chris Healy will make recommendations at a future meeting. This pay would be in addition to the $38,000 base salary that was approved by the legislature and the school.  Currently, Healy said that the governor has no intention to cut anything from the programs he was pushing this session.

Various facility projects were completed during the summer. The lockers in the high school were repainted and repaired. The roof on the ag building is currently undergoing repair and maintenance. The teacher workroom and handicapped restroom was renovated over the summer through the use of grant funds. The softball field has undergone renovations throughout July and August. It was paid for with donations from the Aivry Griffin Memorial Foundation, the Grant City Ball Board, school district funds, and community donations and labor. The dugouts were expanded, new concrete was poured, and new bleachers were ordered. They were scheduled to be delivered Friday. Weeds were removed from behind the outfield.

The district long range planning committee will meet to reevaluate the goals and needs of the district in regards to facility maintenance, improvements, and continued safety upgrades.

The board took no action on putting the bond issue on the ballot for the November election. The last filing date for the school if it wishes to run it a third time is August 30th. The next time it could run a bond issue and only need a four sevenths majority would be April 4th, 2023; the deadline for that election would be January 24th, 2023.

The board set its next meeting date for September 15th.