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March 16, 2009

-MISSOURI UPDATE-

Budget Update

 

On Wednesday of last week (March 11th) the budget committee met in a marathon session spanning the entire day, going until just after midnight.  During this process, committee members offered amendments to the budget introduced by budget chairman, Allen Icet.  According to Icet’s rules, no member can offer an amendment to increase a program or line-item without offering a subsequent decrease to another area of the budget.  With such a tight budget, there was very little room to restore the drastic cuts made by chairman Icet.  At the end of the day, a few programs and services were restored while key questions about where children and their working parents will get health insurance were left unanswered.  Numerous amendments were introduced to restore cuts to Medicaid, the State Children’s Health Insurance Program (SCHIP), presumptive eligibility, child care for low-income families, services for abused and neglected children, and clothing and diapers for foster children.  Yet, at the end of the day, each amendment was either withdrawn or voted down by the committee, leaving a hole in the budget for critical safety-net services.

 

These cuts are alarming for families who rely on these services.  As well, they are alarming for every Missouri taxpayer because many of these programs bring in federal funding – funding that is achieved through federal income taxes and invested back into Missouri communities.  Estimates indicate that 70,000 Missouri children and adults would be impacted by the cuts while a minimum of 3,701 jobs will be lost because of these budget decisions.

 

Summary of House Budget Cuts and Committee-Restored Funding (if any):

 

Health Insurance for Parents: After the House Budget Committee eliminated Governor Nixon’s original proposal to use $51 million in state funding to expand adult coverage up to 50% of the federal poverty, the Governor announced a new plan that would cost the state no funding at all.

The plan takes a voluntary contribution from hospitals throughout the state and replaces them with state funding in order to pull down nearly $100 million in federal funding.  Despite the “no cost” provision for expanding health coverage to 30,000 adults, the House Budget Committee rejected this plan.

 

Health Insurance for Children: Leveraging a $22 million contribution from the state, Missouri stands to gain nearly $60 million in federal funding as part of a program to insure 27,000 additional children.  Governor Nixon proposed eliminating premiums for families up to 225% of FPL and capping the premium at $50 for families between 225% to 300% FPL.  In addition, this proposal called for more outreach to families of children who are currently eligible, but not currently enrolled in the program.  Numerous amendments were offered to restore this funding and all were subsequently rejected.

MISSOURI

 

Budget Update

 

Summary of House Budget Cuts and Committee-Restored Funding (if any):

-Health Insurance for Parents

-Health Insurance for Children

-Child Care

-Foster Care - Clothing and Diapers

-Presumptive Eligibility

-Youth Tobacco Prevention

-Services for Abused and Neglected Children 

 

Child Care Capitol Action Day – March 25th

 

Update on Children’s Bills of Interest:

- QRS & Child Care Assistance

- Child Witness Protection Act

-Home Nursing Visits 

-Grandparents as Foster Parents

- TABOR

 

Upcoming Hearings  

 

KANSAS

Governor’s Budget Adds $1.2 million to Fund the Authorized SCHIP Expansion

 

House Health and Human Services Committee Hears Testimony on Smoking Ban

 

Higher Education Stimulus Funds Rejected from Republican Budget Writers

 

Kansas Public Schools May Avoid Deep Cuts

 

KIDS College Savings Match Program

 

Erosion of the Income Tax Base

 

Child Support Enforcement

 

Teen Drivers

 

Child Care ($3.4 million): The budget chairman’s introduced budget cut the Governor’s recommendation for an increase of $3.4 million to maintain current income eligibility limits for child care at 127% federal poverty and transitional assistance up to 139% FPL. It also cut an additional $450,000 from the core program budget. DSS estimates that eligibility limits under the House Budget Proposal would drop to 123% FPL and transitional assistance would drop to 135% FPL.  An amendment was offered by Rep. Stream, vice chairman of the budget committee.  While Rep. Stream withdrew his proposed amendment,  the budget chairman vowed to find the funding for this critical program when the budget made its way to the House Floor in two weeks.

 

Foster Care – Increase Clothing/Diaper Allowance ($1.3 million): This increase for foster parents who care for children in the custody of the state would have extended the diaper allowance from age 2 to age 3 and increased the clothing allowance by an average of $140 a month, or 65% of the recommended USDA rate. Under the House Budget cut, Missouri’s clothing allowance for foster kids will remain at 35-45% of the recommended USDA rate.   The Budget committee was not willing to restore the cuts for children under the care of the state of Missouri.

 

SCHIP Presumptive Eligibility ($13.2 million):  This was touted as a great victory for children of Missouri during last year’s legislative session, yet that victory may be short-lived if the budget passes as it stands now.  This program allows Rural Health Clinics and Community Health Centers to enroll children in health insurance while they are seeking treatment.  It serves as an outreach mechanism for children who already qualify for the program but are not currently enrolled.  Many of the clinics and centers have just recently finished training on how to implement the program, with literally hundreds of children and their families benefiting from it to date.  Rep. Ryan Silvey (R-Kansas City) offered an amendment to restore this funding that was subsequently rejected.

 

Youth Tobacco Prevention ($1.5 million): The introduced budget bill cut funding for this program, yet Rep. Shalonn Curls (D-Kansas City) was successful in fully restoring this funding.  Our thanks go out to Rep. Curls for her commitment to the youth of Kansas City and her leadership to help make this a victory for the children of Kansas City.

 

Services for Abused and Neglected Children ($2.9 million): The current bill reduces funding for Children’s Treatment Services (CTS) by $1.5 million and reduces funding for the Children’s Program Pool by an additional $1.4 million.  CTS funding supports agencies who conduct therapy and other support services for abused children and their families, as well as helping with crisis intervention and residential treatment in some cases.  The reduction in the Program Pool will impact child abuse prevention and therapy services, crisis intervention and other supports for Missouri’s foster families.  There are currently 9,000 children in foster care in the state of Missouri.  None of the funding for either of these programs was restored in the committee process. 

An increase in the federal reimbursement for Medicaid (FMAP) was a key provision of the American Recovery and Reinvestment Act aiming to stabilize budget deficits and prevent state cuts to safety net services during this economic crisis. Missouri is slated to receive an additional $1.6 billion in federal FMAP funding over the next two years, yet House Republicans have objected to using this funding to maintain vital health, mental health, and social service programs. At a time when demand for safety net services is increasing, the current House Budget fails to help Missouri individuals and families recover during this economic crisis.

 

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REMINDER: Child Care Capitol Action Day – March 25th

 

Is improving the quality and affordability of child care in Missouri a top priority for you?

 

Then join Partnership for Children at the Capitol in Jefferson City to make child care a top priority for state lawmakers!

 

SAVE THE DATE

Child Care Capitol Action Day

Wednesday, March 25, 2009 – 9am – 2:30 pm

 

Help us gather support for child care assistance to keep Missouri’s families working and a Quality Rating System to improve access to quality care with the greatest benefits for Missouri’s children.

 

RSVP or For More Information: Contact Carrie Shapton at shapton@pfc.org or 816-531-9200 x227

 

You don’t have to be an expert – just an advocate for children!

 

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Update on Children’s Bills of Interest

 

QRS & Child Care Assistance: Proposals to increase eligibility for child care assistance and establish a Quality Rating System for child care programs were briefly combined during the Senate Education Committee last Wednesday. The original version of SB94, sponsored by Senator Jolie Justus (D-Kansas City), would have increased eligibility for child care assistance to 140% of federal poverty and extended transitional assistance up to 185%.

 

The Senate Committee Substitute (SCS) removed any reference to specific limits, allows the eligibility level to still be set by appropriations, and then adds a sliding scale up to 45% above the percentage of Federal Poverty Level set by appropriations. The SCS also started out combining child care assistance with Senator Shields’ Quality Rating System bill, but the QRS language was removed by a committee amendment offered by Sen. Rupp. The proposal then passed unanimously out of the committee with the revised child care assistance language but without QRS.

 

Improving the quality and affordability of child care in Missouri are two of Partnership for Children’s top policy priorities this year because these investments help low-income parents advance in the workforce while expanding access to quality early childhood programs that improve outcomes in K-12 education.

 

Child Witness Protection Act: HB863 passed with consent status out of the House Children & Families Committee last Wednesday. Sponsored by Rep. Bob Dixon (R-Springfield), HB863 seeks to establish uniform guidelines for judicial proceedings across the state when a child 14 years old or younger testifies in court. Some of the guidelines established in the bill include a child-appropriate oath, allowing a child to have a comfort item or support person present, and requiring the court to prevent intimidation or harassment of a child by attorneys. The bill was amended in committee to also apply to children ages 15-17 at the discretion of a court.

 

Home Nursing Visits: HB 634, sponsored by Rep. Jason Holsman (D-Kansas City), was heard in the House Committee on Healthcare Transformation last week.  Partnership for Children testified in favor of this meaure, highlighting the importance of early preventive care for children in at-risk homes.  This bill ads home nuring visits and follow-up care as needed until an infant's second birthday for certain at-risk newborns to the list of covered services under the MO HealthNet Program.  The committee substitute to be voted out of committee in the coming weeks will likely include provisions to make this a pilot program in several counties throughout the state including Jackson County.

 

Grandparents as Foster Parents: HB 154. On Thursday of Last week (March 12th) the House passed Marilyn Ruestman’s (R-Joplin) bill that requires the state to make diligent efforts to locate the grandparents of a child before placing them into foster care.  The bill still requires background checks of the grandparents as do the requirements for any foster parents, and has adequate safeguards in place to ensure the safety and well-being of children who need to be removed from their home.  The bill, in effect, simply places into statute the department’s current policy.  The bill passed the House with overwhelming support and has now moved to the Senate.

 

TABOR: (HJR 23) With only the bare minimum of support in the House of Representatives, the constitutional amendment proposed by Allan Icet squeaked through and received final approval on Thursday of last week.  In the end, only 82 members of the House voted for TABOR – the minimum number of votes needed to pass the House of Representatives.  No Democrats voted in favor of the measure with several Republicans joining the minority voting in opposition to the bill.  The resolution proposes a constitutional amendment to limit spending on state government to a cost of living adjustment factors plus a population growth factor.  Implementation of a similar measure in Colorado had a devastating impact on critical programs and services there and was later overturned by the electorate.  Partnership for Children opposes this measure as it would serve to only cut deeper into the great needs of the children of Kansas City.

 

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Upcoming Hearings: No Hearings this week due to MO legislative spring break.

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-KANSAS 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:

 

Governor’s Budget Adds $1.2 million to Fund the Authorized SCHIP Expansion

Last year, lawmakers authorized expanding SCHIP to cover children in families up to 250 percent of the federal poverty level. However, that change was subject to additional state appropriation and the availability of additional federal funds. In January, President Barack Obama signed a bill that provides the necessary federal funding. The Kansas Health Policy Authority estimated that another $1.2 million in state funds would be needed to draw down the additional federal money. Governor Kathleen Sebelius has included the funds in her FY2010 budget to fund the expansion. Currently in Kansas, SCHIP covers children in families up to 200 percent of federal poverty level. According to the Kansas Health Policy Authority, as of Jan. 31, 2009, more than 39,000 Kansas children were enrolled in the program. It is estimated that 8,000 additional children would eventually be covered if Kansas lawmakers approve the Governor’s allotted funding to expanded eligibility.

 

Read more about Gov. Sebelius’ budget recommendations by clicking here

 

House Health and Human Services Committee Hears Testimony on Smoking Ban

The House Health and Human Services Committee conducted hearings this past week on SB 25 which proposes to ban smoking in most public places in Kansas. Those places would include bars and restaurants. Supporters, testifying on Tuesday, said the bill would reduce the amount of exposure to secondhand smoke. Opponents, testified on Wednesday, say this would devastate small, local businesses and a ban should be decided by local governments. At least 23 states require most public places and workplaces to be smoke-free. Eberhart-Phillips, health director at the Kansas Department of Health and Environment and the state’s health officer, said exposure to second-hand smoke was harmful to pregnant women and children. He said involuntary exposure to smoke raised the threat of heart disease and lung cancer by 30 percent among adults.

 

Higher Education Stimulus Funds Rejected from Republican Budget Writers

A move to plug nearly $50 million of federal stimulus funds into Kansas higher education was rejected this past Tuesday by House Republican budget writers. Democrats criticized the decision, saying it could result in fewer Kansans being able to afford college, and fewer campus building repairs getting done. Republicans said they needed more information on the federal stimulus package before recommending use of the funds. The proposal would have added $49.6 million in federal stimulus funds to post-secondary institutions for deferred maintenance projects and tuition assistance. Currently, there is a backlog of “shovel ready” deferred maintenance projects, that the funding increase will create jobs and that construction costs are low. Democrats said they didn’t understand why Republicans wanted to delay a decision on the higher education stimulus funding when GOP officials already accepted stimulus funds for K-12 schools. Higher education has already sustained a 4.25 percent budget cut in the current fiscal year.

 

Kansas Public Schools May Avoid Deep Cuts

On Monday, the House Appropriations Committee approved Gov. Kathleen Sebelius’ budget amendment on school funding, which takes into consideration dollars coming from Washington, D.C., through the American Recovery and Reinvestment Act. A Senate subcommittee has taken similar action. If this proposal gains full House and Senate majorities and Sebelius’ signature, then school funding will essentially stay flat for the next two school years. Base state aid was $4,433 per student at the start of the school year, then cut back to $4,400 in a bill to deal with a budget deficit brought on by the recession. It appears Kansas public schools are going to avoid deep cuts, thanks to the federal stimulus package. Before the federal stimulus package was approved last month, state lawmakers were talking about 10 percent cuts to schools.

 

KIDS College Savings Match Program

The House Education Budget Committee held a hearing March 16 on SB 225, a bill that would provide for continuation of the KIDS College Savings Match Program. Supporters of the bill included Kansas Action for Children, the Office of Kansas State Treasurer Dennis McKinney, and Housing and Credit Counseling, which also spoke on behalf of the Kansas Partners in Asset Development. 

 

Erosion of the Income Tax Base

HB 2358 would allow businesses to utilize the funds they collect from employees in the form of income tax withholding. HB 2358 and SB 244 both have the potential to erode the individual income tax by diverting money to businesses that would otherwise go to the State General Fund. Kansas Action for Children testified against both of these bills this past week.

 

Child Support Enforcement

Kansas Action for Children will testify today in support of HB 2201. HB 2201 addresses professional license sanctions for parents who are in arrears in child support payments. HB 2201 would require restrictions on a professional license holder when the person owes past due child support equal to or greater than three months of child support.

 

Teen Drivers

The Senate Transportation Committee heard testimony March 11 on the Graduated Drivers Licensing bill. Kansas Action for Children testified in support of the bill. Other conferees included AAA, Kansas Department of Transportation, State Farm, Kansas Highway Patrol and Kansas Department of Health & Environment. The Committee is expected to work the bill next week.

  

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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