Senate advances compromise proposal to fund threatened programs

Nixon vetoed the Legislature’s repeal of the so-called “circuit breaker” tax credit program on Tuesday.

The nearly $25 billion state budget lawmakers approved last week relies on that repeal to fund special education programs, health care for blind Missourians and health clinics for the poor.

Nixon, who first supported the tax credit repeal in his budget proposal before recently signaling his opposition to it, has urged lawmakers to find an alternative plan for funding those programs before the session ends Friday.

Under the Legislature’s original plan, the nearly $56 million the state would save by eliminating lump-sum rebates to low-income renters would go to a new fund dubbed the “Senior Services Protection Fund.” Legislative leaders admitted the budget maneuvering – tying that fund to programs for disabled children, the needy and the blind – was meant to keep Nixon from vetoing the tax credit repeal, following threats from his administration.

The Senate alternative, which the chamber approved Wednesday evening, would allow general revenue dollars to be put into the Senior Services Protection Fund, instead.

The proposal still needs approval in the House.

House Budget Chairman Rick Stream said Wednesday that he thinks the proposal from the Senate would through the budget “out of balance.”

“To me, that’s the last resort,” he said.

State revenues have been outpacing expectations, and lawmakers approved legislation to fund $121 million – about a quarter of the anticipated surplus – in improvement projects at the Capitol, state parks and the state hospital at Fulton and the construction of a new Missouri Department of Transportation headquarters.

But Stream said that money is a one-time expense, rather than an “increase to the budget on a permanent basis.”

He said he will continue to try to get the circuit breaker repeal through this week along with other tax credit reforms. The repeal was added to a bill on Wednesday, but after more than 30 other amendments, the legislation didn’t get enough votes to leave the House.

“Negotiations are continually ongoing,” he said.

Ties to Medicaid

The Senate unanimously approved the funding swap in a bill related to Medicaid. The bill is largely technical, but it was almost threatened on the Senate floor.

Sen. Jamilah Nasheed, D-St. Louis, attempted to have the chamber once-again discuss expanding the health care program for the poor, through an optional provision of the Affordable Care Act, by proposing it as a separate amendment.

The Legislature has repeatedly rejected Medicaid expansion this session, and health care advocates are planning to gather on the steps of the Capitol Thursday evening to light 1,500 luminaries as a demonstration against the Legislature’s decision not to expand the program.

Nasheed's amendment was substituted with a different one that will instead create a “Joint Committee on Medicaid Transformation” to study ways to make the program more efficient and improve health care for uninsured Missourians. The House already has approved a similar provision.

After the bill passed, Nasheed said she sees the committee as an opportunity to continue fighting for expansion.

“The battle continues,” she said.

Ed: This story has been updated to reflect that Nasheed did not withdraw her amendment. It was substituted with the task force as a compromise.