Governor Blunt Enacts Responsible Budget Supporting Missourians' Priorities

FROM THE OFFICE OF THE GOVERNOR

June 30, 2008

Contact: Jessica Robinson, 573-751-0290


JEFFERSON CITY—Gov. Matt Blunt today signed a responsible budget that will benefit Missouri families, supports their values, lives within the taxpayers’ means and reflects their priorities.

Gov. Blunt’s strong, conservative fiscal management of Missouri’s budget turned an inherited $1.1 billion deficit into three surpluses in a row. In April, the National Conference of State Legislatures reported that Missouri is one of only 13 states projecting stable or optimistic revenue outlooks for 2009.

According to a June 2008 fiscal survey conducted by the National Association of State Budget Officers, Missouri is one of only 15 states currently projecting higher revenues than estimated for Fiscal Year 2008. In fact, they project that 20 other states are projecting lower revenues.

Additionally, The Pew Center on the States reported this year that Missouri tied for fourth in the country in the management of state government receiving the second highest grade issued to states by Pew.

“This is not the state’s money, nor the state’s budget, it is Missouri’s budget,” Gov. Blunt said. “Missourians can be proud that for the fourth year in a row we have enacted a responsible budget, one they can afford that puts their priorities above politics. Over the last three and a half years, we have pulled the state budget out of an inherited $1.1. billion deficit, kept our promise to increase funding for education, provided three major tax cuts for Missourians and enacted many other important initiatives for Missouri families. We have carefully considered every penny and worked at every turn to help ensure we get the most for each and every taxpayer dollar.”

The $22.4 billion in spending Gov. Blunt approved today includes a $121.3 million increase for the funding formula to support elementary and secondary schools, $43 million in new state dollars for two and four year colleges and universities, and a nearly $24 million increase for needs-based scholarships, which together bring the total increase for education under the governor’s leadership to $1.2 billion.

At the request of House Budget Chair Allen Icet, Gov. Blunt postponed action on House Bill 2012. After a six-week investigation determined Attorney General Jay Nixon’s office violated Missouri state statutes and mishandled a $629,987.84 settlement, Rep. Icet asked the governor to withhold final approval of the budget bill until he could review the findings of the investigation. Gov. Blunt has until June 30th to take action on appropriations bills.

The governor’s carefully balanced FY 2009 budget makes vital investments for Missouri students and classrooms while respecting Missourians’ hard earned tax dollars and includes, among other things, funding to benefit:

STUDENTS $121.3 million increase to continue full funding of the foundation formula, bringing total new formula funding under Gov. Blunt’s leadership to $490,193,006 $3.5 million increase for the A+ Schools Program $5.8 million for the Missouri Virtual School Program (MoVIP), including a $600,000 increase $1 million for eMINTS in support of the Missouri Mathematics, Engineering, Technology and Science (METS) Initiative $2.6 million increase for sheltered workshops $100,000 increase for the Missouri Scholars and Fine Arts Academies $43 million increase for Missouri’s public two- and four-year higher education institutions $23.7 million increase for the Access Missouri Financial Assistance Program, allowing additional students access to higher education, bringing total funding to $95.8 million PUBLIC SAFETY $1.7 billion for road and bridge projects $30 million for grants aimed at reducing death, injury, and property damage on state highways $20.9 million to enhance communication systems between state and local law enforcement and emergency responders $1.5 million for grants to local law enforcement agencies fighting child exploitation on the Internet HEALTH and WELLNESS $437,640 increase for the Missouri Telehealth Network, which enhances access to medical care to people in underserved areas $22 million in new funding to provide a three percent increase for community-based mental health providers $10.4 million for autism treatment and increased autism resources.

$1.9 million for alternatives to abortion services $1.7 million for youth tobacco prevention and cessation programs $1 million for the Show Me Healthy Women Program which provides health services to women with incomes at or below the 200 percent poverty level who are uninsured or underinsured $5.74 billion for Mo HealthNet that reflects $420.4 million in increased funding, and includes:

°$112.8 million for rate increases in managed care, hospice, non- emergency medical transportation, and premiums °$56.6 million for a nursing facility rate increase °$39.2 million for a physicians rate increase °$16.6 million to expand health care coverage for children through the State Children’s Health Insurance Program °$13 million to provide access to health care coverage for low-income women °$11.5 million for other provider rate increases in dental, in-home, ambulance, federally qualified health centers, and optometrists FARM FAMILIES and AGRICULTURE $34.3 million for biodiesel production incentive payments $12.5 million for ethanol production incentive payments $171,000 to enhance and expand current efforts to foster a quality “brand” identity for Missouri beef $156,004 increase to begin and administer the Large Animal Veterinary Student Loan Program WORKERS, JOBS and ECONOMIC GROWTH $1.8 million to support the protection and preservation of historic Missouri properties $1.6 million in total funding for the Missouri State Historical Society which includes a $100,000 increase $23.7 million to promote Missouri’s tourist destinations and attractions $13.4 million from the Life Sciences Research Trust Fund to increase Missouri’s research capacity $10.8 million from taxes paid by non-resident athletes and entertainers to support the arts VETERANS $70.1 million for health care costs at veterans’ homes $1 million Veterans’ Commission Capital Improvement Trust Fund for veterans’ service officer grants $2.2 million for family supports and housing assistance for homeless veterans The governor today signed House Bills 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, and 2013.

Blunt vetoed:

The words “Health Care Account” in Section 3.160, which according to the General Assembly was included in error. The Healthy Families Trust Fund – Health Care Account was abolished in 2006. By deleting the words the appropriation for the Missouri Telehealth Network will be from the properly named Healthy Families Trust Fund.

$500,000 Conservation Commission Fund for the statewide interoperable communications system. This expenditure was not approved by the Conservation Commission and they strongly oppose it.

$62,914 general revenue from the Department of Health and Senior Services for the Evan De Mello Program. This funding was contingent on the passage of HB 1516, which was not enacted during this session.

$50,000 Child Support Enforcement Fund for the purpose of mediation services. The funds were not part of the governor’s budget and were not requested by the department. Changes in federal law have diverted Child Support Enforcement Funds, which have come to states to support child support activities. Until the full impact of these changes is determined, diverting funding from core responsibilities of child support activities to mediation could undermine the child support program.

$15 million General Revenue for the Part D Medicare Clawback payments. The appropriation is being reduced to reflect the anticipated spending level.

The state’s Fiscal Year 2009 Budget governs state spending between July 1, 2008 and June 30, 2009.