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JEFFERSON CITY — Missouri Gov. Jay Nixon delivered a positive and upbeat message in the State of the State Address this week, and he and leaders of the Legislature agree that the state budget should be a top priority and the biggest challenge of 2012.
Economics
Nixon praised the efforts of legislators who oversaw a shrinking of the state budget in his first three years in office.
"We've maintained our strict fiscal discipline and balanced our budget, and we've done it without raising taxes," Nixon said.
In his speech at the Capitol, Nixon said the state budget shrank by $1.6 billion since he took office in 2009.
The budget Nixon presented to the Missouri House and Senate calls for the Legislature to reduce government payroll by an additional 816 positions.
"The state workforce is the smallest it's been in 15 years. Those decisions were tough but necessary," Nixon said.
State Sen. Mike Kehoe, R-Jefferson City, indicated before the session began that prioritizing expenses would be the top priority for state senators this year.
"It's the No. 1 priority because when you talk about being short on money in the state you quickly come to two or three areas: corrections, mental health and education—all very tough areas to handle," Kehoe said.
Kehoe is vice-chairman of the Senate Transportation Committee. He also serves on the Education Committee, Joint Committee on Corrections, and Joint Interim Committee on State Employee Wages.
As for private sector employment, Nixon said in his address that more out-of-work Missourians are going back to work.
"We've turned a corner. Today it was reported that our unemployment rate in Missouri is now at its lowest level in three years," Nixon said. "Missouri farms and bus are shipping more goods around the globe, generating billions of dollars in economic activity and thousands jobs here at home."
House Majority Floor Leader Tim Jones, R-Eureka, said in the Republican Party's official response to the State of the State that Nixon's figures were misleading.
"At a time when our economy is stagnating and the unemployment rate remains unacceptably high, Missourians deserve far better. Tonight 250,000 Missourians cannot find a job, many more are underemployed and countless others struggle to make ends meet," Jones said.
Tax credits
Nixon asked the legislature to enact "comprehensive" tax credit reform to compliment a sticky budget process.
JEFFERSON CITY — Missouri Gov. Jay Nixon delivered a positive and upbeat message in the State of the State Address this week, and he and leaders of the Legislature agree that the state budget should be a top priority and the biggest challenge of 2012.
Economics
Nixon praised the efforts of legislators who oversaw a shrinking of the state budget in his first three years in office.
"We've maintained our strict fiscal discipline and balanced our budget, and we've done it without raising taxes," Nixon said.
In his speech at the Capitol, Nixon said the state budget shrank by $1.6 billion since he took office in 2009.
The budget Nixon presented to the Missouri House and Senate calls for the Legislature to reduce government payroll by an additional 816 positions.
"The state workforce is the smallest it's been in 15 years. Those decisions were tough but necessary," Nixon said.
State Sen. Mike Kehoe, R-Jefferson City, indicated before the session began that prioritizing expenses would be the top priority for state senators this year.
"It's the No. 1 priority because when you talk about being short on money in the state you quickly come to two or three areas: corrections, mental health and education—all very tough areas to handle," Kehoe said.
Kehoe is vice-chairman of the Senate Transportation Committee. He also serves on the Education Committee, Joint Committee on Corrections, and Joint Interim Committee on State Employee Wages.
As for private sector employment, Nixon said in his address that more out-of-work Missourians are going back to work.
"We've turned a corner. Today it was reported that our unemployment rate in Missouri is now at its lowest level in three years," Nixon said. "Missouri farms and bus are shipping more goods around the globe, generating billions of dollars in economic activity and thousands jobs here at home."
House Majority Floor Leader Tim Jones, R-Eureka, said in the Republican Party's official response to the State of the State that Nixon's figures were misleading.
"At a time when our economy is stagnating and the unemployment rate remains unacceptably high, Missourians deserve far better. Tonight 250,000 Missourians cannot find a job, many more are underemployed and countless others struggle to make ends meet," Jones said.
Tax credits
Nixon asked the legislature to enact "comprehensive" tax credit reform to compliment a sticky budget process.
"Over the past four years, more than $2 billion in state tax credits have been redeemed. Now, effective tax credits are used to create jobs and grow our economy, but tax credits that aren't delivering for Missourians must be retooled and reformed," Nixon said.
Nixon devoted much of his address to the automotive industry, calling on the legislature to continue efforts to entice auto manufacturers to maintain and increase manufacturing and supplying jobs performed in Missouri. Nixon praised a tax credit program that enticed Ford Motor Company to expand operations in the Kansas City suburb of Claycomo.
State Sen. Chuck Purgason, R-Caulfield, whose district includes Camden County, famously fought the Ford tax incentives with a 20-hour filibuster on the Senate floor.
"If you're going to drive the economy in this state, you need to stop the politicians from picking winners and losers," Purgason said. At the time of the Claycomo debate, he called the enticement plan a "Missouri Christmas tree," for Ford.
This session, Purgason has introduced a bill that would sunset all state tax credit programs by 2016.
Nixon also touted state government job creation programs, high-speed Internet access and growth incentives in his speech.
"In a global economy with constant evolving technology, training and education can never stop," Nixon said.
Education
Education will be a focal point for debate in the Missouri House and Senate as budgeting progresses.
"Over the past three years, state funding for school districts and teachers has been slashed and underfunded by seven percent, or $232 million.
Funding for Missouri's public higher education institutions and scholarships has been reduced by more than 14 percent, which totals about $153 million," Senate Appropriations Committee Chairman Kurt Schaefer, R-Columbia, said in the Republican response to Nixon's speech.
Schaefer says Medicaid spending over the same period increased by $1.6 billion.
The $23 billion budget that Nixon proposed includes a 12.5 percent cut to state colleges. Of the 4,100 state government job cuts Nixon proposes, 816 come from higher education.
The governor proposed a slight increase of $5 million to the state's K-12 education budget. The House of Representatives is already working on modifying the way K-12 funding is distributed to school districts. What is known as the "foundation formula" was not designed to work by an underfunded government when it was enacted in 2005.
"We must find a solution that applies to the foundation formula fairly and predictably. We also know that we have more work to do with our urban school districts on both sides of the state to make sure that every child in every community has equal opportunity to succeed," Nixon said.
Sen. Kehoe says maintaining education funding is one of his personal goals for 2012.
"I think everybody is committed to do what we can to shore up and continue to fund education as well as the other programs. Tough decisions will have to be made, but I think we can work through it," Kehoe said.
Political campaigns
Nixon also called for the reinstatement of campaign contribution limits, which were repealed when Republicans controlled both the capitol and the governor's mansion.
This year in the Missouri Senate, a Republican wants to reinstate contribution limits. Sen. Purgason introduced Senate Bill 546, which puts limits on the contributions that individuals and committees can donate to candidates for governor, lieutenant governor, other ranking state offices, state legislative posts and all other public offices.
An area connection to Joplin
Nixon opened and closed the 2012 State of the State Address by paying homage to the people of Joplin, who suffered through a May 22, tornado that killed 161 people and injured thousands.
At the conclusion of the speech, Nixon honored former Eldon R-I Schools Superintendent C.J. Huff, who now serves as the Joplin school superintendent. Huff's administration set aside more than $100 million in funding over the next two years to help pay for disaster recovery efforts.
