GOVERNOR SIGNS $22.4 BILLION BUDGET INTO LAW

Gov. Matt Blunt has signed into law the $22.4 billion state operating budget for the 2009 fiscal year, which began July 1. This year’s budget increases overall spending by nearly $1 billion over the previous year. Blunt signed 12 of the 13 bills that make up the budget on June 27 before signing the last measure on June 30.

The budget includes a $121.3 million increase in direct state aid to local school, which falls in the normal range of increases public education receives each year. It also includes a $43 million increase for public colleges and universities, but the boost fails to restore total funding to these institutions to the FY 2002 level, which was the high-water mark for higher education funding. The budget did not restore the cuts to health care the governor and Republican-controlled General Assembly instituted in 2005.

Initial estimates show the state ended FY 2008 with a $50 million surplus. Revenue collections for the year grew by 3.7 percent, slightly higher than the 3.1 percent growth the budget was based on.

LAWMAKERS PASS $22.44 BILLION STATE OPERATING BUDGET

Lawmakers on May 7 wrapped up work on a $22.44 billion state operating budget for the fiscal year beginning July1. The budget increases spending by $956.7 million, or 4.5 percent, over the current fiscal year. Despite the increase, the final budget is $502.5 million lower than what Gov. Matt Blunt had requested.

Lawmakers substantially trimmed Blunt’s spending request in large part due to a downturn in state revenue collections. Even with the cutbacks, the budget still spends more general revenue, which accounts for nearly 40 percent of total spending, than the state expects to collect in the coming fiscal year. General revenue spending will increase 5.4 percent with collections expected to rise by just 3.4 percent. Lawmakers are using a surplus set aside last year to cover the difference.

3 PERCENT RAISE FOR STATE WORKERS INCLUDED IN BUDGET

Budget negotiators have opted to give state employees a 3-percent raise for the upcoming fiscal year, a position proposed by the governor and supported by the Senate. The House of Representatives had wanted to give employees a flat raise of $1,056, which would have put more money in the pockets of lower-paid state employees and given smaller raises to higher-paid workers.

Under the 3-percent plan, an employee making $100,000 will get a $3,000 raise while an employee earning $20,000 will get a $600 raise. State employee groups had urged budget negotiators to accept the House position, which House Democrats successfully passed through the chamber earlier this year after several years of trying.

HOUSE PROPOSES AMENDMENT TO RESTRICT SPENDING

On an 84-65 vote, the House of Representatives on April 10 approved a proposed constitutional amendment that would severely restrict state spending. If also approved by the Senate, the measure would go before Missouri voters on the November ballot.

HJR 70 sponsored by House Budget Chairman Alan Icet, R-Wildwood, would limit annual growth in general revenue spending to the rate of inflation with a further adjustment for population increases. Supporters say the amendment is needed to further control state spending. Opponents counter that it would hamstring the ability of government to provide necessary state services. Colorado suspended a similar constitutional provision after it caused a state budget crisis.

HOUSE APPROVES $22 BILLION STATE BUDGET

The House of Representatives on March 27 approved a $22.45 billion state operating budget for the 2009 fiscal year, which begins July 1. The House budget is nearly a half-billion dollars under the $22.94 billion Gov. Matt Blunt requested.

The budget provides the minimum increase required by law for public schools and doesn't reverse the health care cuts of 2005. Republicans narrowly defeated efforts by Democrats to expand Medicaid eligibility and restore dental and vision coverage. Democrats, however, scored a victory in winning approval of an amendment sponsored by state Rep. Margaret Donnelly, D-St. Louis, to restore coverage for occupational, physical and speech therapy.

The 13 appropriations bills that make up the state budget now head to the Senate for further consideration. The constitutional deadline for sending the budget bills to the governor is May 9.

BUDGET SURPLUS NOW PROJECTED AT $320 MILLION

State budget officials on July 9 said Missouri will have an estimated $320 million in available but unappropriated revenue for the 2008 fiscal year, which began on July 1. When the General Assembly granted final approval to the FY 2008 budget in May, it was expected that about $200 million was being left unspent.

BUDGET SURPLUS NOW PROJECTED AT $320 MILLION

State budget officials on July 9 said Missouri will have an estimated $320 million in available but unappropriated revenue for the 2008 fiscal year, which began on July 1. When the General Assembly granted final approval to the FY 2008 budget in May, it was expected that about $200 million was being left unspent.

$21.5 BILLION STATE BUDGET SENT TO GOVERNOR

The General Assembly on May 10 finished work on the $21.49 billion state operating budget for the fiscal year beginning July 1. The budget marks a 3.3 percent increase from the current fiscal year. The 13 appropriations bills that make up the state budget now await the governor’s signature to become law.

The spending plan’s boost in state funding for local school districts is comparable to what the legislature grants every year but does not represent an atypical infusion of new money. It increases funding for public colleges and universities by about 4 percent – a third of the 12 percent increase the Missouri Coordinating Board for Higher Education said was needed and that House Democrats endorsed.

The budget does not restore the Medicaid cuts of two years ago that resulted in more than 180,000 Missourians losing their health care coverage. The restoration would have cost the state $155.8 million in general revenue but allowed it to leverage an additional $265.3 million in federal Medicaid funds that instead will go to other states. The Republican-controlled General Assembly left $200 million in general revenue unspent.