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March 2, 2009

-MISSOURI UPDATE-

House Supplemental Budget Cuts Governor’s CHIP Proposal

On Wednesday, the House Budget Committee presented a FY’09 Supplemental Budget that was nearly identical to Governor Nixon’s recommendation, with one glaring omission: health insurance for kids. 

 

When Nixon presented his budget in January, he highlighted children’s health coverage as one of his top gubernatorial priorities. His FY’09 supplemental budget included immediate funding to reduce or eliminate premiums for certain families and to reach out to uninsured children who are eligible for state coverage but not enrolled.

 

By cutting less than $1 million in state general revenue to cover many of Missouri’s uninsured children, the House Budget Committee effectively sent back more than $6 million in federal funding for kids.  The supplemental budget passed the committee with only four members standing up to oppose a budget that short changes Missouri’s children. 

 

While certainly a setback, all hope is not lost.  As the supplemental budget moves to the House Floor and then to the Senate, PFC will be pressing the General Assembly to ensure that federal funding intended for Missouri’s kids is not sent out-of-state.

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MISSOURI

 

House Supplemental Budget Cuts Governor’s CHIP Proposal

 

FY'10 Budget Update

 

Economic Recovery Dollars flow to MO

 

Update on Children’s Bills of Interest

-          Child Care Assistance

-          Child Care Licensing

-          Parental Rights

-          Earned Income Tax Credit

-          Drop-Out Prevention

-          P.E. Requirements

 

Upcoming Hearings 

 

New Bills Filed

 

KANSAS

KAC Policy Update

FY ‘10 Budget Update

 

The House Appropriations committees finished their hearings on next year’s budget last week.  PFC has been closely watching the Appropriations Committee on Health, Mental Health and Social Services, which submitted their recommendations to the Budget Committee last week.  While these recommendations are not yet public, PFC urged committee members to support three priorities for children in the Governor’s FY’10 budget:

  1.  CHILDREN’S HEALTH: Support Governor Nixon’s proposal to reach out and cover more than 27,000 additional children who are eligible for state coverage but not enrolled by: providing 1-yr continuous eligibility; enhancing outreach efforts to enroll uninsured but eligible children in state coverage; eliminating premiums for children living between 150% and 225% FPL; reducing premiums for children between 225% and 300% FPL to a standard $50 per month.
  2. CHILD CARE: Support Governor Nixon’s proposal to maintain the current child care assistance eligibility limit at 127% of federal poverty and transitional assistance up to 139% FPL. Utilize federal stimulus funding designated for the Child Care Development Block Grant to further enhance child care assistance and help low-income families impacted by the current economic recession re-enter or advance in the workforce.
  3. CHILD PROTECTION: Support Governor Nixon’s proposal to increase the foster care clothing and diaper allowance by an average of $140 per child.

The Appropriations Committee for Social Services has expressed support for most of these budget priorities, yet certain members indicated that there is not as much support for the elimination or reduction of premiums for children in working families.  Partnership for Children maintains that the Governor’s proposal for children’s health, which has already been cut from the FY’09 Supplemental budget, is a cost-effective investment because removing barriers to health coverage for kids will reduce the number of uninsured and the use of the emergency room for primary care.

 

With two weeks left before the legislative spring break, it is expected that House Budget Chairman Allen Icet will shortly be filing the FY'10 budget bills and will reveal whether federal recovery funding will be included to balance revenue shortfalls this year. Several weeks ago, the House Appropriations committees were told to cut up to $500 million from the Governor’s budget, but there is now more specific information about the budget stabilization and economic recovery funding coming to Missouri.

 

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Economic Recovery Dollars flow to MO

 

Last Thursday Missouri received its first payment of $223 million from the $787 billion federal economic stimulus package. The funding came from an 8.05% increase in the federal reimbursement for Missouri’s Medicaid services (FMAP).

 

Governor Nixon has already acted on a legislative proposal to create two new state funds to track federal stimulus revenue while bills in the House and Senate are still pending final passage. Federal dollars flowing in and out of these new state funds can be tracked online at a new website launched by Nixon’s office last week: http://transform.mo.gov/

 

The website also asks Missourians to submit ideas and proposals on how to spend the estimated $4 billion the state is expected to receive from the Federal Recovery Act. Over 1,500 proposals have already been submitted.

 

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Update on Children’s Bills of Interest 

Child Care Assistance (SB94): The Senate Education Committee heard many supporters from the business and child care communities last Wednesday during a hearing on legislation increasing eligibility for Missouri’s State Child Care Assistance program. SB94, sponsored by Senator Justus (D-Kansas), would increase eligibility for child care to 140% of federal poverty and transitional assistance up to 185% FPL. Missouri’s current eligibility at just 127% federal poverty ranks near the bottom nationally. A single mother with two young children making just $23,000 a year is ineligible for any help paying for child care costs that average over $11,000 in Missouri.

Witnesses in support of the bill included Operation Breakthrough, Kansas City Mayor Mark Funkhouser, a small business owner in Jefferson City, Missouri Child Care Resource & Referral Network, Partnership for Children, MNEA, and the GKC Chamber of Commerce.

 

Child Care Licensing (HB383): Legislation seeking to reform Missouri’s child care licensing regulations was favorably received in the House Committee on Professional Registration & Licensing last Wednesday. State Auditor Susan Montee and Shelley Blecha, the mother of an infant who tragically died in an unlicensed child care home last year, were key witnesses supporting HB383.

 

Last year, a state audit of the child care licensing system found a home-provider who was licensed to care for 10 children, actually caring for as many as 18 children by herself. Her business was still legal because 8 of the children were related to her, and thus not counted under Missouri law. Even for providers caring for an illegal number of children, such as the case in Arnold resulting in an infant’s death, the state regulatory agency for child care has no authority to close illegal businesses and providers only risk being slapped with a $200 fine.

 

HB 383 would: 1) remove the exemption for unrelated children in determining child care licensure; 2) require license-exempt providers to disclose their exempt status to parents; 3) increase the fine for illegally operating a child care business to $200/per day with a cap of $10,000; 4) allow the Department of Health & Senior Services to close illegally operating unlicensed child care programs. Partnership for Children strongly supports HB383 as a positive first step towards improving safety in child care programs.

 

Parental Rights (HJR16): Partnership for Children joined MO Kids First in opposing HJR16 during a hearing in the House Children & Families Committee last Wednesday. This constitutional amendment proposed by Rep. Cynthia Davis (R-O’Fallon) would give parents and legal guardians a “natural and fundamental right to direct the care, education, and upbringing of their children.” The government would not be able to hinder this fundamental right unless there is “compelling governmental interest.”

 

The vague language of this legislation raises concerns over potential impact on the state’s ability to properly conduct child abuse investigations. In addition, a constitutional amendment could lead to a litany of court cases arguing the constitutionality of Missouri’s current state statutes designed to protect our vulnerable children when parents fail to look out for their well-being.

 

Earned Income Tax Credit (SB105): Missouri’s outdated and unfair income tax system came under scrutiny last week during a hearing in the Senate Government Accountability Committee on legislation establishing a State Earned Income Tax Credit (EITC). A State EITC could benefit as many as 440,000 Missouri families and is also proven to be a valuable economic stimulus, generating economic activity that would reach every corner of Missouri.

 

Though SB105, sponsored by Senator Justus (D-Kansas City), creates a refundable state EITC, the committee also discussed an alternative non-refundable EITC that would only be available to Missourians with incomes high enough to pay state income taxes.  Missouri has one of the highest tax burdens on working poor families, with a family of four starting to pay income tax at just 82% of federal poverty. Low-income families are most likely to spend any tax refund quickly in their local economy in order to meet basic needs, thus providing a critical economic stimulus during this time of financial turmoil.

 

Partnership for Children, the MO Budget Project, AARP, and the Missouri Association for Social Welfare testified in support of the legislation.

 

Drop-Out Prevention (SB116): Legislation establishing a state grant program for local drop-out prevention strategies was heard in the Senate Education Committee last Wednesday. SB116, sponsored by Senator Bray (D-St. Louis County), creates a Persistence to Graduation fund. School Districts with over 60% student eligibility for free and reduced lunch would be eligible for state funding to implement a holistic approach to drop-out prevention, covering early childhood to young adulthood.

 

Kansas City’s Metropolitan Organization for Racial & Economic Equity (MORE2) testified in support of SB116, stating that over 18,000 students did not graduate from Missouri high schools in 2008 at a loss of $4.8 billion in lifetime earnings.

 

PE Requirements (HB509): HB509, sponsored by Rep. Stream (R-St. Louis County) was heard in the House Committee on Elementary and Secondary Education on Wednesday.  This bill would require daily physical education programs in grades K-8, plus a mandatory recess period from kindergarten through 5th grade.  HB 509 does not allow for waivers if students participate in marching band or athletic teams.  Partnership for Children testified in favor of this bill because research continues to show that children who engage in physical activity have better behavior in class and are generally more prepared to learn.  While PFC testified in favor of the current version of the bill, we will be working with the bill sponsor, members of the committee and other advocates to ensure that the additional requirement will not have an adverse effect on the curriculum.

 

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Upcoming Hearings

 

Sex Offenders (SJR 3): Creates an exception to the prohibition against laws retrospective in operation by allowing certain laws pertaining to sexual offenders and other felons to be applied retrospectively. Senate Committee on Judiciary. Mon, March 6 at 6pm.

 

House Budget: House Appropriations Committees will report on priorities and new decision items for FY’10 budget. Tues, March 3 at8am; Wed, March 4 at 8am.

 

Senate Appropriations: Review of budget items for the Department of Health & Senior Services. Tues, March 3 at 8am; Wed, March 4 at 8am.

 

Health Coverage (SB306): Establishes the Show-Me Health Coverage plan to provide health care coverage through the private insurance market to low-income working individuals. Senate Committee on Health, Mental Health, Seniors, and Families. Tues, March 3 at 8:15 am.

 

Quality Rating System (HB387): Requires the development of a quality rating system for early childhood and before- and after-school programs that are licensed by the Department of Social Services. House Committee on Elementary & Secondary Education. Wed, March 4 at 8am.

 

Tax Reform (HB814, HB318): Replaces the state individual and corporate income tax and the estate tax with a state sales tax. House Committee on Tax Reform. Wed, March 4 at 8am.

 

KCMSD School Board (SB253): Requires that vacancies for Kansas City school board members be filled by special election rather than by appointment. Senate Committee on Jobs, Economic Development, and Local Government. Wed, March 4 at 1pm.

 

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New Bills Filed

HB 863 (Dixon): Establishes a child witness protection act that applies to all children testifying in court.

HB 900 (Brown – 73): Establishes limitations on the fat content of school meals and requires meals to be measured for compliance over a school day.

HB 901 (Brown – 73): Establishes nutritional standards for foods and beverages sold to students during the school day.

SB 459 (Lager): Allows criminal prosecution of mother for harm to unborn child due to intentional and unlawful use of controlled substances.

SB 490 (Wilson): Amends various provisions of the Tobacco Master Settlement Agreement.

SB 520 (Wright-Jones): Creates physical education requirements for students in primary grades.

SB 521 (Wright-Jones): Creates physical education requirements for sixth through twelfth graders.

SB 529 (Goodman): Criminalizes prenatal drug or alcohol use.

SB 536 (Wilson): Enacts the Foster Care and Adoptive Parents Recruitment and Retention Fund.

 

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-KANSAS UPDATE-

KAC Policy Update

Thanks to our Partners at Kansas Action for Children for this update from Topeka on children’s issues relating to KAC’s 2009 Policy Agenda:

 

KIDS College Savings Match Program. The Senate unanimously approved of SB 225, which makes permanent the KIDS College Savings Match program. The bill will proceed to the House for consideration.

Property Tax Shift. Kansas Action for Children was among those who testified Feb. 26 against HB 2150 in the House Tax Committee. In addition to being unconstitutional, the bill - known as Proposition K - would shift the property tax burden from properties that are growing in value to properties that are stagnant or declining in value.

 

Child Care Assistance. The House Social Services Budget Committee will hear testimony March 4-5 on the SRS budget. The budget includes funding for the Child Care Assistance program.

 

Financial Literacy.  The House Education Committee will hear testimony March 4 on SB 84, a bill that would strengthen the requirements for Kansas school districts to teach personal financial literacy by placing questions on this topic on state assessments starting in 2012. SB 84 was approved by the Senate last week.

 

Children's Health Care. The House Social Services Budget Committee will review the Kansas Health Policy Authority's 2010 budget and hear public testimony March 3 regarding the budget. Kansas Action for Children will testify in support of funding for the children's health care expansion that was approved by the 2008 Legislature. The Governor on Friday released a set of amendments to her 2010 budget, which include funding for the expansion.

 

Autism Waiver. The House Aging and Long Term Care Committee will hear public testimony March 3 and March 5 on HB 2094, which addresses funding for Medicaid waivers. Kansas Action for Children will testify in support of funding for the autism waiver.

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Until next week –

 

Carrie Shapton & Jeremy LaFaver

Policy & Outreach Coordinators

Partnership for Children

shapton@pfc.org; lafaver@pfc.org

816-531-9200