JEFFERSON CITY—Following the General Assembly’s early delivery of the $23.3 billion FY 2011 budget to the governor’s desk during the legislative session, this week he signed the appropriations bills that comprise the state’s upcoming spending plan.
The governor signed House Bills 2001–2013 on June 17, as well as announced $301.4 million in budget cuts (mostly withholdings) based on lower-than-expected state revenue. During the budget process, lawmakers were forced to make more than $450 million in cuts from the governor’s original budget proposal. Most of the savings came from streamlining state departments, including eliminating more than 1,000 government jobs and items such as equipment, travel and expenses.
Some of the major spending restrictions announced this week involve withholding from or reducing:
- K–12 school transportation ($70 million).
- Regional professional development centers ($6.4 million).
- Scholarship programs such as Access Missouri ($50 million) and Bright Flight ($4.1 million).
- Missouri Consolidated Health Care Plan (MCHCP), assuming increased state employee health care premiums and co-pays beginning Jan. 1, 2011 ($10 million).
- 250 state jobs from various agencies.
- Biodiesel subsidies ($1.5 million).
- Medicaid provider rates ($14 million).
Also included in the withholdings is $47 million in projected tax credit savings. The savings will likely come from lower than anticipated redemptions due to Missouri’s economic situation and a more careful review of tax credit authorization in the future.
The sole line-item veto is contained in HB 2007 , and cuts three administrative law judge positions from the Workers’ Compensation Fund because of declining workload.
The FY 2011 budget is effective July 1, 2010, through June 30, 2011.
A bill designed to encourage saving for college through the Missouri Higher Education Savings Program, also known as MOST, was signed by the governor on Monday, June 14. Senate Bill 772 , sponsored by Sen. Delbert Scott (R-Lowry City), will take effect on Aug. 28.
Specifically, the measure removes a 12-month minimum holding requirement for MOST plan contributors to receive state tax benefits. Senate Bill 772 also eliminates the sunset provision governing the Missouri Higher Education Deposit Program—a non-exclusive alternative to the MOST plan that is administered by the Missouri Higher Education Savings Board.
Listen to The Senate Minute’s report for this week.
This legislative update is written periodically throughout the interim. To follow these and other issues facing the Missouri Senate, visit www.senate.mo.gov. Visitors can track legislation as it passes through the General Assembly, learn more about their district, or, when the Legislature is in session, listen to streaming audio of legislative debate as it happens. For more legislative news, please visit the Senate Newsroom . There you will find various audio and video programs and other services, such as:
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