MOScout Daily Update: How the SOTS Ended Up in the Senate - The Coming MedEx Debate - Beating COVID #1 Economic Policy and more...

Parson Decamps to Senate

How did Governor Mike Parson end up on the Senate dais making his State of the State speech?  We may never really know for sure, but from a variety of sources, I’ve reconstructed as best I can…

The Senate is hobbled due to COVID.  Between the sick senators and those who are in isolation due to close contact with COVID-positive folks, a fair number of Republicans (6-7) were unavailable.  Democratic senators – some of whom are upset at the laxness that their Republican colleagues have displayed – decided to skip for safety reasons.  Suddenly the Senate was at “17 ½ or 18” according to one source, too close to definitely make quorum.

The Senate unable to call itself into session for the speech, the governor’s office was informed that a joint session was not possible. 

The House quickly offered a few Plan B options: the governor could use the House chamber to tape his speech and release it; the governor could reschedule the speech for next week; the governor could address the House.

At some point these discussions involved the principals – Parson and Speaker Rob Vescovo.  And rather than coming to a solution, it went the other way.  I wasn’t in the room, but from what I hear the “discussion” devolved into shouting between the governor and the speaker. Wowza.

·         It’s unclear why Parson was so fixated on giving the speech live at 3PM when a taped speech makes great sense during a pandemic.

·         It’s surprising that a governor who needs a speaker to pass his priorities, and a speaker who needs a governor to sign his priorities, couldn’t find a reasonable accommodation.

The governor then took his speech to the other side of the building where Pro Tem Dave Schatz welcomed him, although the Senate was not officially in session.

What It Means

·         Tension between the 2nd and 3rd floor at this level in January = good news for Dems.

The Speech

Parson’s speech (watch it here) was mainly focused on the two issue with which he’s most comfortable: workforce development and infrastructure.  Among the new initiatives…

·         A centralized Office of Childhood, bringing together programs previously housed in three different departments.

·         Expansions of Career Ready 101 program.

·         More money for ports, transportation and maintenance projects.

But

As St. Louis On the Air’s Sarah Fenske pointed out, Parson skipped the most important issue of the day: COVID vaccines.  Not only is it top of mind with most Missourians, it’s the number one economic issue right now. 

Federal Reserve chairman Jerome Powell at the end of his press conference yesterday (see it here, at about the 55-minute mark) summed up how to help the economy: “That is really the main thing about the economy is getting the pandemic under control, getting everyone vaccinated, getting people wearing masks and all that. That’s the single most important economic growth policy that we can have.”

MOBudget Pleased

Missouri Budget Project praises aspects of Parson’s speech… “MBP will analyze the specifics of the proposal in the coming days, but we are pleased that in his address, Governor Parson:

·         Emphasized the need to level the playing field for bricks and mortar businesses by implementing the "Wayfair Fix" and “responsibly invest those revenues and provide new opportunities for our state.”

·         Committed to implementing Medicaid expansion.

·         Recommended full funding of K-12 schools through the $3.56 billion foundation formula.

·         Requested funds for six new crisis stabilization centers to improve mental health access.”

The Coming MedEx Debate

Missouri Independent notes the enormous windfall that Medicaid Expansion represents.  An infusion of $1.65 billion from the federal government, with “only” $130 million dollars from state revenue used to expand coverage to an estimated 275,000 more Missourians.

But

Budget Director Dan Haug in a pre-speech briefing was clear: healthcare costs in the state budget are unsustainable if they continue on their current trajectory.  This budget allocated $450 million more to Medicaid than the current year’s budget.  Pricing in the healthcare industry often rises as a faster pace than the overall economy.  Haug said that increases of this magnitude can be absorbed in good year, but not in average years.

And

That’s in line with concerns that Sen. Bill Eigel has laid out.  At Monday’s Appropriations Committee, SB 1 was voted out 11-1.  SB 1 is the reauthorization of the FRA tax that underpins a large chunk of Medicaid funding.  The sole dissenting vote was Eigel.  He said he’s interested not just that Medicaid is funded, but that it’s operated efficiently.  So he “looks forward” to some debate about that on the Senate floor.

So

While some observers cheered that the doomsday scenario of having to cut education to pass for MedEx didn’t come to pass, it’s clear that fiscal conservatives aren’t so sure that day isn’t still coming down the road if the current trend continues.

Lobbyists Registrations

Heath Clarkston, Doug Nelson, and Kurt Schaefer added Opportunity Solutions Project.

Bharani Kumar added Crossing Paths.

Bob Priddy added National Steamboat Museum.

$5K+ Contributions

Missouri AFL-CIO Committee on Political Education - $7,487 from Missouri AFL-CIO.

Birthdays

Happy birthday to Van Kelly.