Budget and Taxation
“If we are to guard against ignorance and remain free, it is the responsibility of every American to be informed.” Thomas Jefferson
Thomas Jefferson’s words seem more relevant daily as Missourians and Americans battle with the ever-increasing size and scope of government. Each Missouri budget is illustrative of the direction of your state government. Above all else, even if we pass no other bills, the Missouri Constitution requires the Legislature to pass an annual balanced budget. Missouri’s Fiscal Year 2017 budget is not final until the House and Senate reach full agreement and it is signed by the governor. Nevertheless, an important step was accomplished last Thursday, when the Senate passed House Bills 2001 through 2012, representing the bulk of anticipated expenditures for the next fiscal year (July 1 through June 30).
This year’s budget spends approximately $27.2 billion which is approximately one billion dollars higher than the prior year’s expenditures. With federal budgets in the trillions of dollars and state budgets in the billions, it is not easy for us to relate. Here are some breakdowns of averages:
2016 budget expense $27.2 billion
Expense per taxpayer $7,041
Expense per adult $5,806
Expense per person $4,471
Expense per household $11,519
Increase per person $ 167
Increase per household $ 424
$/ taxpayer less Federal tax money $4,685
Some noteworthy issues in the budget included an increase in funding for the public defender system, designed to ensure justice is served by an adequate defense even when a citizen cannot afford an attorney. There was reduced funding for the University of Missouri – Columbia in response to perceived mismanagement and a misaligned authority structure. A study of the University’s management structure is also being proposed. The budget bills were also written in a way to ensure Missourians who oppose abortion are not being forced to fund it – Planned Parenthood will no longer be a qualified Medicaid provider.Fiscal Year 2016 is projected to be the first year of a long-overdue income tax cut that could reduce Missourian’s taxes by as much as $69 million. It is disturbing that last week the Senate passed and sent to the House a fuel tax increase expected to raise $230 million, much of that from Missouri drivers. (If passed by the Legislature, the proposal will go to a vote of the people.) In addition, a cell phone tax was voted out of the Senate Commerce Committee this week, which would increase Missourian’s taxes up to $15 million. I voted against both measures; it seems somehow disingenuous to be claiming credit for a tax decrease when taxes are being raised by concurrent proposals.Some have asked about the progress of Senate Joint Resolution 39, which affirms constitutional protections of religious liberty and freedom of conscience relative to marriage. It has been assigned to a House committee but has not yet had a public hearing in that chamber. It is disappointing to see a number of businesses, who depend on Missouri customers, publicly oppose the religious protections of SJR 39 and hammer legislators to oppose it. Some of them include MasterCard (makes me glad I use VISA), Edward Jones, Monsanto, AT&T, Ameren and Dow Chemical. Their opposition has motivated me to begin checking product labeling more closely than ever before.You can contact my office at (573) 751-2108 if you have any questions. Thank you and we welcome your prayers for the proper application of state government.