Mo. House passes budget without lump sum cuts

April 23--JEFFERSON CITY -- Two weeks ago, Missouri Department of Mental Health officials looked at the $28 million general revenue cut on the horizon and wondered where they could tighten their belts.

State psychiatric hospitals, their 1,200 bed filled to capacity, wasn't an option. Neither was developmental disabilities support, unless they wanted to waitlist individuals for services -- something they and Gov. Jay Nixon worked hard to eliminate last year.

But next year's $26 billion budget passed Thursday by the House eliminates that worry. Instead of $140 million general revenue across-the-board cuts to social programs in the departments of Mental Health, Health and Senior Services and Social Services, lawmakers struck a compromise that would slash those budgets less than $40 million in the 2016 fiscal year that begins July 1.

The across-the-board cuts -- in the form of 4-6 percent lump sum cuts to social programs in the departments -- is part of a budget lawmakers hope to send to the governor Thursday, two weeks ahead of schedule in an effort to override Nixon's vetoes during session. Nixon has 15 days to sign or veto the 13 bills. The Senate is working its way through the bills.

Senate Appropriations Chairman Kurt Schaefer, R-Columbia, wanted the cuts to rein in spending in areas that continue to grow each year.

But the plan immediately came under fire by both Gov. Jay Nixon, a Democrat, and Senate Republican Leaders. House Budget leaders, too, dug in their heels and demanded a compromise. Schaefer agreed to the about $40 million general revenue cut because it "starts to bend that cost curve."

Rep. Glen Kolkmeyer, R-Odessa, was glad the cuts were stymed.

Mental health care, he said, is important because "these are people who cannot take care of themselves. We have to take care of these people."

But Schaefer said that compromise meant lawmakers could not pump as much money as he wanted into public higher education institutions. The Senate, taking into account the money freed up from social programs under the cuts, put a $27.6 million general revenue increase toward those instiutions based on performance. Lawmakers compromised on a $12 million increase based on performance, the same amount recommended by the governor.

Lawmakers also funneled an about $85 million general revenue increase for the Foundation Formula -- which funds K-12 public schools -- topping Nixon's recommended $50 million increase. State officials say it's enough to counteract wording in a new law prohibiting the Department of Elementary and Secondary Education from prorating formula payments to certain school districts, which would leave some districts out millions of dollars. The formula currently is $442 million underfunded.

The 13 budget bills also include an expansion of Medicaid managed care -- another plan put in place by Schaefer, much to the chagrin of Sen. Rob Schaaf, R-St. Joseph, who filibustered the expansion for more than five hours when the bill first came to the Senate.

The expansion would shift 200,000 parents and children receiving traditional Medicaid to privatized managed care, exempting the elderly, blind and disabled. This could mean more money for Clayton-based Centene, whose subsidiary, Home State Health Plan, was one of three companies awarded the state's managed care contracts. The Office of Administration has said contracts would have to be rebid in the event of an expansion.

Medicaid expansion, once again, was left out of the budget for the coming fiscal year, and House members passed a $2.2 million general revenue cut to the state's Information Technology Services Division.

The bills are House Bills 1-13.

Alex Stuckey -- 573-556-6186

@alexdstuckey on Twitter

astuckey@post-dispatch.com

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