MOScout Daily Update: Start of the Second Half - More Graves Talk - Show Me on Prop Tax Freeze - Chamber Hires Spainhower and more…
The legislature returns from spring break today.
The 2nd Half
Eight weeks left of the legislative session… There are two huge issues looming, and of course a multitude of lesser issues.
· First, the budget. The House will hand off the budget to the Senate, and then lobbyists and senators will work to rearrange spending. But with a flat revenue environment, and a dwindling pile of reserves, the dynamic has changed from recent history. It won’t simply be a case of “the Senate wants to spend more.” It will truly be about priorities. I’d guess that one major revision will be House Budget Chair Dirk Deaton’s higher education funding plan. I won’t be surprised if it’s jettisoned entirely or at least scaled back enormously.
· The second big issue is the governor’s tax plan. That, too, will likely face major revisions in the Senate. In addition to Democrats worried about the regressive nature of moving to a sales tax, a lot of businesses will be looking for carveouts for their industries. One indication of corporate Missouri’s ambivalent with the plan: the Chamber’s list of issues it’s pushing for these final eight weeks doesn’t include the tax plan. Finally, there’s some consternation that navigating a tight budget is tricky enough without also embarking on a major tax overhaul.
The House passed 100 bills before the break, giving the Senate plenty to pick and choose from, and decide where they will focus activity in the second half. Among the high-profile issues…
· HB2989 – Rep. Bill Hardwick’s VLT bill – Thought to be doomed to Pro Tem Cindy Laughlin’s new special committee.
· HJR154 – Rep. Darin Chappell’s attempt to change the terms of state Medicaid eligibility – Will certainly face Democratic resistance.
· HB2069 – Rep. Brandon Phelps’ regulatory framework for autonomous vehicles – Has the Teamsters worried about its impact on trucking jobs down the road.
· HB1788 – Rep. Jim Murphy’s jab at Bill Eigel’s fundraising – Was this just a House stunt, or will the Senate spend valuable floor time on it?
· HB1838 – Rep. Ann Kelley’s bill to end most car safety inspections.
More Graves Talk
MOIndy’s Jason Hancock mentioned the rumor that Congressman Sam Graves might not run for re-election in his weekend newsletter.
[T]his round of chatter seems to have a little more heat than usual, including from people with close ties to Graves and the political apparatus around him. Why does this year feel different? Because if Democrats take the House this fall — and the environment is moving in their direction — Graves would be headed back to the minority for at least two years.
Meanwhile adding to the intrigue… Senate Pro Tem Cindy O’Laughlin was recently in DC…
One MOScouter: The scuttlebutt is Cindy would be a seat warmer for one of the Graves kids down the road… This would be interesting as I would suspect she would want Governor Kehoe’s endorsement and he has several priorities- income tax- in the Senate.
ShowMe Warns on Prop Tax Proposals
ShowMe Institute’s Dave Stokes worries about the “tempting” property tax proposals.
Missouri’s property tax system works best when the assessments are accurate, the tax base is wide, and the rates are low. That combination will help grow Missouri’s economy for everyone while properly funding the necessary functions of local government. However, a radical change in the system is being put before voters in St. Charles, Jefferson, and Franklin counties in April…
This change would also reduce the ability of school districts to fund themselves and would make them more dependent on state aid… At the Show-Me Institute, we support low taxes, and I am well-aware of how tempting this will be to voters. But using market valuations in reassessment to set tax levels is a good system… Hate them as much as you wish, but property taxes indisputably harm economic growth less than other taxes do.
SLPS Allegations
Millicent Borishade, former superintendent of the St. Louis Public Schools, filed suit against her former employer. See the suit here.
It’s full of unsubstantiated claims, and it’s hard to tell whether this is just the output of a disgruntled former leader or a window into serious wrongdoing.
The allegations that might raise eyebrows at the Department of Elementary and Secondary Education…
The misuse of public funds discovered included, but was not limited to, the following:
· Students improperly coded to "Beaumont" school to manipulate graduation rates and accreditation metrics;
· Schools represented as "comprehensive" to improperly receive state funding;
· DESE funds allocated based on inaccurate enrollment/graduation reporting;
· False reporting to Missouri DESE constituting possible fraud involving public funds; and
· Coding students to different schools to manipulate test scores and avoid accountability requirements, particularly affecting minority students.
Chamber Hires Spainhower
Press release: The Missouri Chamber of Commerce and Industry has strengthened its investor relations and business services team with the hiring of Theckla Spainhower.
Beginning today, Spainhower will serve as director of investor relations, helping employers understand how the Missouri Chamber’s influence, programs and resources can accelerate their success. She’ll work to build relationships with business leaders across the state and grow the Missouri Chamber’s member network of employers and investors.
· Spainhower comes to the Missouri Chamber after serving as director of government relations at PayIt, a government technology company based in Kansas City… Spainhower previously served as chief of staff for Congressman Bob Onder during his time as a state senator.
Overcast Raising Emus
Rep. Matthew Overcast makes the front page of the Post-Dispatch. (Unfortunately, the Post no longer prints its Monday edition).
Gubby Appts
Governor Mike Kehoe announced gubernatorial appointments…
· Trisha Turner was appointed to the State Lottery Commission.
· Katie Siegel and Tamara Tateosian were appointed to the Missouri Workforce Development Board.
· Julia Murray was appointed, and Margaret Bultas was reappointed, to the Missouri State Board of Nursing.
· Phillip Slinkard was reappointed to the Missouri State Board of Accountancy.
· Ryan Fullerton was appointed as the Barton County Coroner.
· Marty Marler was appointed as the Washington County Surveyor.
eMailbag
No Missouri governor has done quite so much for Kansas as Mike Kehoe. First, Kansas lures the Chiefs across the state line… Now Kehoe is pushing legislation that will give Missouri – and particularly the Kansas City area – among the nation’s biggest sales tax bites on virtually all goods and services. That’s another win for Kansas, which will benefit from Missourians crossing the state line to take advantage of lower everyday sales taxes.
New Candidate Filing
House 130 – Leslie Jones (D)
House 146 – Mary Harriet Talbut (D)
House 147 – Tim Palmer (D)
$5K+ Contributions
Her Health, Her Future PAC - $25,000 from Gretchen Gannon.
Missouri Senate Campaign Committee - $10,000 from The 1821.
UFCW Active Ballot Club-Missouri Federal Committee - $25,000 from United Food and Commercial Workers Active Ballot Club (Washington, DC).
Best Start for Kids STL - $12,000 from WEPOWER.
Citizens for Jason Johnson - $15,000 from Chip Cook.
GROW Jeffco PAC - $25,000 from Plumbers & Pipefitters Local 562 Political Education Fund.
Lobbyist Registrations
Jewell Patek added Central Missouri Foster Care and Adoption Association.
Eapen Thampy added Heritage Holistic Health Group LLC; and deleted Prohibition Hemp, Peerless Canna, Fire Palace, MMCI Holdings, and AST Genetics.
Happy Birthday
Happy birthdays to Jacqueline Bardgett and Tom Loehner.