Missouri Lawmakers agree on funding plan for Fulton State Hospital, increases for public schools

The chairmen of the House and Senate budget committees announced this and other funding levels Tuesday morning during a conference committee to reconcile differences in the two chambers' fiscal year 2015 budgets. The budget must be completed by Friday, the constitutional deadline for passing the budget.

Nixon's plan for the Fulton facility involves 25 years of bond repayment. About $14 million was included in the fiscal year 2015 budget by the conference committee for bond repayment. The hospital is the oldest state psychiatric hospital west of the Mississippi River and houses the state's most severely mentally ill.

Nixon initially proposed about $14 million be included in the current fiscal year's supplemental budget for the Fulton project, but legislators opted not to follow that recommendation because they did not believe it was enough of an emergency.

Supplemental bills are supposed to be reserved for emergency or unforeseen expenses — state officials have known about the need to rebuild Fulton for years.

Two other plans to fund the Fulton facility have been working through the legislative process. Senate Appropriations Chairman Sen. Kurt Schaefer, R-Columbia, said the governor's plan of lower yearly bond repayments was safer given the current fiscal year's anemic revenue growth.

Nixon was pleased with the conference committee's decision to back his funding plan, stating in a release that this would strengthen public safety across the state.

"I want to thank the members of the conference committee for answering my call to move forward on this critical and long-overdue public safety priority in a fiscally responsible way that will benefit patients, caregivers and our communities," Nixon said in the release.

The new facility would feature a 300-bed, high-security complex expected to cost a total of $211 million. Over a 10-year period, the facility rebuild is expected to save and defer costs totaling $188 million. In a best-case scenario, the new hospital would open in late 2016.

Lawmakers also agreed to provide a $278 million increase for the Foundation Formula, which funds public K-12 schools, if revenue grows as much as Nixon projects.

The amount revenue grows during the fiscal year beginning July 1 has been a point of contention between the governor and the Legislature this session. The Republican-led Legislature estimates revenue will grow 4.2 percent, while the governor, a Democrat, suggests a higher number, about 5.2 percent.

Stream responded to this difference by creating a surplus revenue fund, where money would be funneled if revenue exceeds the Legislature’s estimate.

Lawmakers decided to provide a $115 million increase for the formula. The rest would be tied up in the surplus revenue fund. 

Other increases agreed upon in the conference committee this morning include:

• $15 million more for K-12 transportation, recommended by the Senate. The House recommended $25 million more.

• An average of a 5 percent increase for both 2-year and 4-year public higher education institutions based on performance funding. Senate recommended this amount, while the House called for an average of a 3 percent increase across the board, with the assistance of the surplus revenue fund.

• $15 million more for needs-based scholarship Access Missouri. The House recommended $20 million and the Senate recommended $8.5 million.

• $5 million for a possible Republican National Convention in Kansas City.

Lawmakers removed the $6 million in the surplus revenue fund for the take over of the Ozark National Scenic Riverways, but left a spot in the budget should the National Park Service relinquish control to the state.

Lawmakers also removed a provision providing $33 million for a new State Historical Society of Missouri building, which was added by the Senate.

The bills are HB 2002-2013.