Frustration rampant as legislature hits break

At the beginning of the General Assembly’s 2009 session, there was much talk of bipartisan cooperation.

But Republicans and Democrats alike were frustrated as they departed for a week-long legislative spring break. And with roughly two months to go before the session ends, both parties are at loggerheads to get common legislative goals passed through the General Assembly.

House Republicans and Democrats are at odds over the state’s budget, which came more sharply into focus against the backdrop of a worsening economic situation. The construction of the budget is complicated by the influx of nearly $4 billion in federal stimulus money.

While Democrats have wanted to use a portion of those funds to plug budgetary holes in social services and health care spending, Republican budget writers generally want the money to fund “one-time” capital improvement projects.

The situation left many Democrats fuming about the first half of the session.
“When you have a ridiculous interpretation of House rules that allow us not to use money that’s supposed to be for the people of Missouri, that is not a part of a bipartisan attitude,” said House Minority Leader Paul LeVota, D-Independence.

The House quickly passed a Nixon-backed economic development bill filled with enticements for business expansion and job training. But a fight in the Senate over the application and scope of tax credits could derail the package that received much praise from Republicans when it first came down the legislative pike.

After weeks of negotiations, the Senate unleashed a new version of the economic development bill featuring several major changes to state tax credit regulations. The legislation included sunsets on all state tax credits and greater oversight by the Senate Appropriations Committee on how the credits are given.

But the biggest sticking point could be the capping of a number of popular tax credits, including the historic preservation tax credit. The uncapped mechanism is widely used to refurbish buildings, including the Tiger Hotel in Columbia.

Some Republicans – such as Sens. Brad Lager, R-Savannah, and Matt Bartle, R-Lee’s Summit – paint the historic tax credit as an out-of-control entitlement program eating up too much state revenue. Others – such as Sens. Jeff Smith, D-St. Louis, and Robin Wright-Jones, D-St. Louis – see the mechanism as an economic development tool for the state’s urban core.

The bill’s stall in the Senate prompted House Speaker Ron Richard to tell reporters that he’ll flood the Senate with copies of the original economic package until it’s passed.

“We’re going to send an economic development bill over every week… then we’re going to send that same bill attached to every bill,” Richard said. “We’ll send over 100 of them, 300 of them, 500 of them until we get that broke loose.”

On the outside looking in is Nixon, whose first-year agenda for health care, higher education and ethics reform is being largely ignored by Republicans.
Nixon traveled to Columbia earlier this month to present a new approach to expand income eligibility for the state’s Medicaid program. The plan would use a combination of federal money and an increased contribution from hospitals to pay for more people to join the program.

“I’m really having a hard time figuring out how pretty much anybody could be against this,” Nixon said at a news conference in Columbia.

But Republicans ended up blocking Democratic attempts to pave the way for the Medicaid expansion in the House Budget Committee. Republicans have also been lukewarm to efforts to expand the state’s A+ Program, which provides financial aid to students pursuing a certification or associates degree. Republicans have also failed to move on Nixon-backed plans to reinstate campaign finance limitations and to codify the public bidding of state fee offices.

Nixon holds the weapon of the veto pen to prompt Republicans to be more receptive to his agenda. Already, his administration has indicated that he won’t sign legislation passing on the financing costs for nuclear power plants to consumers. He could also veto budget bills that didn’t contain expansions he wants to health care programs.