MOScout Daily Update: Thomas in Senate 6? - Nichols in Senate 32? - Budget Shakes Fist at KC $$$ - Lottery’s Competition and more…

Dems held the Senate floor again yesterday, continuing their stalling of the gubernatorial appointments.  We’ll see what today brings.

 

More Senate Shake-Ups

In Senate 6… Former Rep. Lisa Thomas formed a committee to run.  Obviously these races are still in flux. But if the current field holds, she’d be the only woman in a five-way race.  That’d be an interesting dynamic.

In Senate 32… I’m told that Sen. Jill Carter will face a primary.  The word is that Ellen Nichols will be launching a campaign against her.  Nichols is a neurosurgeon, and interestingly… the wife of former Sen. Bill White – who Carter ousted in 2022.  Buckle up, folks!

And

In Senate 16… Joe Steelman made a social media post updating his Senate campaign. “Six weeks ago, my dad was diagnosed with brain cancer.  And I’ve been prioritizing time with him… Making sure my kids are keeping him smiling. And I’d ask that you pray for him… The reasons I’m running for Senate haven’t changed. It’s sharpened. It’s always been about families, families who are going through tough seasons… For folks wondering if I’m stepping back, let me be clear: there is still fight in this dog.  Now this campaign is not going to look like what I thought it would look like.  And it’s definitely not going to look like what Jefferson City expects.  But I don’t think it was ever going to… So I appreciate everyone out there praying…”

 

Why ‘Immediate Restrictions’

One of the more interesting characteristics of the governor’s FY2027 budget proposal is that there are “immediate restrictions.”  Whereas restrictions, also known as “withholds,” normally come during the year if revenues fall behind expectations, this budget says the funds will be pulled back on Day One.

I didn’t understand why they did this.  It seemed cumbersome compared to simply not putting the funds in the budget to begin with.  But one hallway denizen explained the reasoning to me.

By budgeting the funds and then immediately withholding it, the line item remains intact.  That way, in some future year when revenues can sustain the expenditure, it won’t be a new decision item (NDI) to restore the funding.

 

House Budget Committee Notes

Here are a few interesting nuggets that emerged in yesterday’s House Budget Committee.

Impact of SB 4 – There was a little tussle over the impact of last year’s bill overhauling utility regulations…

Rep. Betsy Fogle: Is it still your belief that Senate Bill 4 increased utility costs for state departments?

OA budget manager Hannah Swan: Senate Bill 4 changed the rate making process. So FMDC [Fiscal Management and Budget Committee], when they were tracking that fiscal note, indicated that there could be future costs increase associated with that, and that turned out to be accurate.

Chair Dirk Deaton questioned this: I mean, that law didn't become effective till August 28. And, you know, I think these one rate took effect in June, the other in May. Only one took effect after SB 4.

Swan backed off: I don’t know. You are correct. I don’t know.

 

$2M in perpetuity? – The humdinger of the day was the revelation that the state had been sending $2 million a year to Bartle Hall Convention Center in Kansas City for the last 30+ years and no one really knew why.

Stacy Neal, Director Of Accounting: We have nothing that shows that there's an agreement to pay… the history that I can tell you is that back in 1991-ish we entered into agreements. We entered into agreements in Saint Louis and we entered into an appropriation in Kansas City. The agreement in Saint Louis I'm referring to is when we went out and we bonded for the, the Rams Stadium… In Kansas City, we did not bond. The state's name was not on anything in Kansas City, but we did start making appropriations.

I just handwritten notes, nothing authoritative. It's like ‘we're gonna pay for twenty five years.’ So we pay for twenty five years… Well, we're still paying in Saint Louis, and we still have teams in Kansas City. So we end up paying for 30 years. Okay? This takes us up to about 2020. Around 2020, law got changed.. Now we can pay for 40 years. We're still paying… Records that I have, I do not have any agreement from a body that says that we will pay… all of the payment files, all the bonding files, I don't have anything. I don't have anything that has an obligation set up between the state and Kansas City.

Members of the Budget Committee hit the ceiling with a general “The gravy train ends today” outrage.

 

Lottery in the age of sports betting and prediction markets – The Missouri Lottery faces changes in their competitive landscape, and needs to work to reach the younger demographic.

Lester Elder, Director of Missouri Lottery:  When you look at our data the players that we're attracting, we're really missing out on the 20 or the 18-34 year olds… most of our players are between 34 and 55, and then there's another big bump when you get 65 and older. 

I've got a 27 year old and 31 year old and if you didn't text them or use the phone, they you wouldn't be able to contact them. I mean, that's just how it is… So I think at some point, we're gonna have to look at having a digital means to be able to purchase a lottery ticket to stay competitive.

You know, back in 1986, we were the only game in town. Around '94, '95 is when the casinos, came around. So that gave us some competition… So now we've got we've got the casinos. We've got sports betting. We've got the gray machines that are out there, and there's a new thing that's taken the whole nation. It's called prediction markets… And basically, it's gambling using Bitcoin, and they're selling futures. So it's something that will probably be dealt with by the legislature at some point in time because some states are already looking at prediction markets and how it affects the other legalized gambling sources in the state.

 

eMailbag: Reaction to MAPA and VLTs

·       So just to be clear prosecutors which have complete authority to do something about illegal machines now and haven’t and are upset that no one has done anything so let’s just legalize it. 

·       Interesting story on the prosecutors and VLT’s. Prosecutors have been getting reports from the patrol for years on illegal machines but many of them have elected to take a pass.

·       Did I read that the prosecutors just said the way to address an illegal act (slots) is to make it legal and regulate it?  Think about that for a second.

 

Missouri Future Adds Lobbyists

Missouri Future LLC is the vehicle used to advance the Sinquefield family agenda.  Its lobbying is directed by Nexus Group’s Kate Casas, and Gamble & Schlemeier’s David Jackson.  Recently they’ve added two new lobbyists: Jewell Patek and Ryan Gill.  In accordance with Rex Sinquefield’s long-standing commitment to lower taxes, they are likely supporting Governor Mike Kehoe’s effort to eliminate the income tax.

 

Schmitt Visits Jeff City

Senator Eric Schmitt spent Tuesday in Jefferson City meeting with statewide officials and lawmakers.  He had a reception for legislators that evening. 

·       Rep. Mazzie Christensen, whose youthful look results in her being sometimes mistaken for a capitol intern, received a promotion...  A House staffer approached her at the reception “do you work for Senator Schmitt?”

 

DESE Sets Up SLPS Meeting

The Department of Elementary and Secondary Education says that they’ve established weekly meeting with the St. Louis Public Schools officials to “offer assistance where it’s needed.”

The topics of discussion during those meetings will be mostly on these four key items:

·       Financial stability

·       Academics, specifically Literacy

·       Attendance

·       Transportation

 

CD-1 Endorsement

Punchbowl reports: Missouri. National Nurses United, the largest organization of registered nurses, is endorsing former Rep. Cori Bush’s (D-Mo.) comeback bid. Bush, a nurse, is challenging Rep. Wesley Bell (D-Mo.).

 

Dillon, Chilton Join MFH Board

Press release: Missouri Foundation for Health (MFH) welcomes three new members to its Board of Directors.

·       Kerri Morgan, PhD, OTR/L — Associate Professor of Occupational Therapy and Neurology at Washington University School of Medicine in St. Louis.

·       Dave Dillon — Vice President of Public and Media Relations at the Missouri Hospital Association.

·       Leann Chilton — Former Vice President of Government Relations at BJC HealthCare.

 

Gubby Appt

Governor Mike Kehoe announced the appointment of Todd Smith as the Associate Circuit Judge for St. Francois County in the 24th Judicial Circuit.

 

Help Wanted

Department of Elementary and Secondary Education seeks Chief Counsel.  Supervise and oversee the work of the Chief Counsel legal team, comprised of attorneys and legal support staff positions; Serve as primary department legal contact for all legal matters related to and coming before to the State Board of Education; Coordinate the Department’s legal response on all matters, and serve as liaison to the Office of the Attorney General… $119,342 per year.

 

$5K+ Contributions

Conservative Leaders of Missouri - $25,000 from Protection Plus LLC.

Best Start for Kids STL - $8,000 from Anne Miller.

Her Health, Her Future PAC - $10,000 from Susan B. Anthony List Inc. Candidate Fund.

 

Lobbyist Registrations

John Bardgett, Jacqueline Bardgett, Chris Roepe, and Braydon Pemberton added Bunge North America, Inc.

Adam Schwend added Look to the States.

Adam Carlson added Rouse Frets White Goss Gentile Rhodes PC.

Derek Coats added Missouri Soybean Association, and Viserion Grain.

Andrea Rice added Missouri Land Improvement Contractors Association.

Gamble & Schlemeier added American Academy of Physician Associates; and deleted Missouri Academy of Physician Assistants.

James Harris added Design-Build Institute of America Mid-America Region; and deleted Automated Health Systems, Inc.  

 

Happy Birthday

Happy birthdays to Kristine Heisinger, Mike Lodewegen, Jay Hahn, Andrew McDaniel, Lynn Morris, Anne Marie Moy, and Michelle Colbert.

 

One Last Thing

When you have an early committee hearing, but the meter won’t accept payment…

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MOScout Daily Update: Clemens Pivots, Reuter Pivots, Deaton Declines - $260M Changes Nothing - PBMs in Spotlight and more…