As far as states go, Missouri’s finances don’t look too bad.
State Rep. Mike Thomson assured the nearly 50 attendees of the Greater Maryville Chamber of Commerce legislative coffee that Missouri is holding its own. The breakfast was held Tuesday morning at the Maryville Community Center.
“Budget-wise I think you all realize we’re better off than a number of states,” Thomson said. “We still have our triple-A rating.”
This means rating agencies have ranked Missouri’s credit quality at the highest level.
However, when the state legislature begins its new session Jan. 9, finances sit on top of the agenda, starting with the Affordable Care Act approved by the U.S. Congress and signed into law Mar. 23, 2010.
“The Affordable Care Act, of course, has got us backed into a corner,” Thomson said.
An issue facing Jefferson City is whether to implement insurance exchanges as provided by the law.
The state insurance exchange ensures health insurance providers comply with federal mandates by Jan. 1, 2014.
“The governor has come out and said we’re not going to do an exchange,” Thomson said. “It’s a complicated issue. ”
Then there’s Medicaid expansion. The law requires states provide Medicaid to healthy adults above the poverty level. Although the federal government will initially pay the full cost, after three years states will have to start paying a growing percentage of that cost.
“What do we do with expansion of Medicaid?” Thomson said. “We’re talking about billions and billions of dollars. It’s your tax dollars. Our heath care providers are going to be in a world of hurt.”
Another issue facing the General Assembly is economic development across the state; and Kansas isn’t helping. Under the Kansas Tax Act, signed into law May 22, business owner’s income, as well as professionals (such as doctors and lawyers) is tax-free. Thomson said this is driving Missouri money to the sunflower state.
“Kansas is kicking our behinds to bring in business. We have doctors flooding across the state line,” he said. “We have to address tax codes, and develop something to bring jobs to Missouri.”
The General Assembly is approaching the situation cautiously. “We have to address this without giving away the farm.”
Northwest Missouri State University president John Jasinski asked Thomson about alternative funding for higher education.
“Higher education has been underfunded over the past few years,” Thomson said. “John (Jasinski), you’ll say we need more money, but we might not have the money.”
The legislature passed a law last year that required a funding formula for higher education be in place by 2014. Thomson said Gov. Jay Nixon isn’t in a hurry to see the funding formula implemented.
“The governor now does not want this to happen,” he said. “He wants to stay with his little performance funding.”
The performance funding, Thomson said, benefits bigger school districts, leaving smaller, rural districts at a disadvantage.
Jasinski turned the discussion to gun legislation, asking Thomson if there may be some discussion when the legislative session begins. This is in relation to Friday’s mass school shooting in Newtown, Conn., in which 20-year-old Adam Lanza killed his mother before he drove to Sandy Hook Elementary School and killed 20 children, six teachers, and himself.
Thomson said he doesn’t believe the state will take up discussion on gun control legislation anytime soon.
“We shouldn’t be talking about guns right now,” Thomson said. "This was a deranged person. If we’re going to blame something, it’s not guns. Gun control only takes guns away from people who are law abiding.”
In the wake of this tragedy, the emphasis, Thomson said, should be on people.
“We need to focus on mental health issues,” he said. “It’s like blaming a spoon for being too fat. There’s got to be a person behind it.”
Thomas Salisbury, small business liaison for U.S. Sen. Roy Blunt also attended the breakfast, and doubts there will be new federal legislation on gun control.
“I do not see any action being taken by this particular Congress,” he said. “This has more to do with mental health than it does with guns.”
The Greater Maryville Chamber of Commerce holds two legislative coffees a year, one before and one after each legislative session. Kansas City Power and Light sponsored the breakfast. State Sen. Brad Lager was scheduled for the appearance as well, but was absent due to illness.