Budgeting for a Crisis
The Missouri Senate returned to the Capitol this week for the first time since the governor declared a statewide emergency in response to COVID-19. Legislators arrived on Tuesday and began work revising a supplemental budget bill drafted by the House of Representatives. As a member of the Senate Appropriations Committee, I participated in approving a $6.2 billion bill that authorizes the governor to spend federal dollars aimed at combating the coronavirus.
In a normal legislative year, the supplemental budget bill addresses loose ends and reconciles unforeseen spending so the state’s books balance at the end of the fiscal year on June 30. I believe this year’s supplemental budget bill took on much greater significance due to the COVID-19 virus. The original supplemental budget passed by the House in March totaled about $400 million. The 15-fold increase in spending in the Senate version of the bill is almost entirely related to coronavirus expenses and nearly all of the extra dollars come from the federal government.
The Senate passed the revised supplemental budget on Wednesday and forwarded it to the House, which accepted the new numbers. More than $5.6 billion of the spending authorized by House Bill 2014 is funded by the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress in March. This is the same federal legislation that funds direct payments to individuals, increased unemployment insurance and loans to small businesses. In my opinion, the spending bill passed by the General Assembly reflects the scope of the coronavirus response in Missouri and the impact the pandemic will have on Missouri’s economy.
More than $1 billion will go to support local governments. Another $1 billion funds state agencies, including the State Emergency Management Agency, which is providing personal protection equipment to first responders and health care workers. The Department of Social Services will receive money to pay for increased Medicaid expenses. A large portion of the $1.8 billion budgeted for the Department of Elementary and Secondary Education will pay for the grab-and-go meals that schools have been distributing in recent weeks. Another $500 million is devoted to colleges and universities. There’s hazard pay for prison workers and state hospital staff. Hospitals, nursing homes and area agencies that support seniors all receive money to cover COVID-19 expenses. The list of budget items related to COVID-19 goes on and on.
I don’t believe anyone could have anticipated the events of the past month, nor the dramatic changes that have taken place in Missouri. I’m sure there will be opportunities in the future to reflect on the decisions made and whether there might have been a better course, but I believe that time is not now. In this moment, the needs are great and the money in this budget will allow the state to address many of those needs.
There’s still much to be done, however. The Legislature has a constitutional obligation to pass a balanced budget for 2021. The COVID-19 shutdown has had a devastating impact on our states’ economy and, in my opinion nearly all previous budget assumptions are now meaningless. We’ll have a tough job balancing the books for next year, and we only have a short time to do the work.
The 100th General Assembly is scheduled to adjourn on May 15. At the moment I left the Capitol on Wednesday, there were no definite plans for when legislators would return to Jefferson City. I assume we’ll be back to work on the budget, but when remains uncertain. Whether there will be any progress on all the other legislative proposals that seemed so important just three or four months ago is anyone’s guess.
It’s my honor to serve as your senator for the 16th District. If you have questions or need any assistance, please call my office at 573-751-5713 or log onto my webpage at https://www.senate.mo.gov/brown for more information.