State of the State Response Vlog

The Right Thing To Do

Governor Nixon delivered his annual State of the State address this week, highlighting his newfound liberal stance on entitlement programs – specifically Medicaid.  He is advocating for a billion dollar increase in the Missouri budget to expand a broken program that is already filled with waste, fraud and abuse.  Auditor Schweich’s recently released audit proves the fact that welfare programs remain rife with improper spending and abuse.  Those are facts.  The Governor’s talking points, which certain liberal editorial boards have parroted across the state, are supposedly: 1) “It’s the right thing to do.” and 2) “It’s the smart thing to do.”  This is the depth of his argument.  For $1 billion of your hard earned tax dollars, I expect more details and you should, too.

I oppose the expansion of this entitlement and here’s why:

A.     The Missouri electorate has consistently reminded its government officials that they will not accept tax increases, do not favor ObamaCare, nor have they supported those who have promoted either.

i.       President Obama lost Missouri in both of his elections

ii.      Governor Nixon campaigned on no new taxes and never mentioned his support of ObamaCare in his re-election bid

iii.     Proposition C in 2010 overwhelmingly rejected ObamaCare to the tune of 70% of the vote

iv.     Proposition B in 2012 (less than 12 weeks ago) proposed a tax increase on cigarettes to support education programming – it failed 

B.     None of the politicians or advocates of the expansion have addressed how to pay for the expansion once Missouri’s share kicks in – an amount that will cost you and I hundreds of millions of dollars.  Next to spending on social programs, which comprises almost one-third of Missouri’s current $24 billion budget, education is our largest expenditure.  Our kids – our future job creators, employers, researchers – will see less funding per capita in the classroom if this short-sighted expansion moves forward. 

C.     An economic analysis of the impact of Medicaid expansion was released late last year, and some have taken these figures as gospel.  New jobs, they say.  New taxes from new spending, they say.  The problem with this analysis is glaring, but unreported.  It fails to account for where the money will come from and what the underlying impact of taking it out of your pocket will do to the economy.  This is not new money.  It is borrowed, and it will ultimately come from our taxpaying citizens and our businesses.  When they are forced to give the government money, they can’t spend it in the private sector, invest it in their own future, or save it for a rainy day.  Yet zero consideration for this huge, looming economic squeeze is given.  Let us not forget our federal government is making fiscal promises without passing a budget and by borrowing $0.40 of every $1.00. 

Governor Nixon may find it easy to just say “It’s the right thing to do,” but I’m here to make responsible decisions.  I’m here to be realistic and pragmatic.  Governor Nixon and his allies may feel comfortable trying to hoodwink the public into agreeing with their positions, but I’m here to be honest with you.

 

I will not support this short-sighted, bankrupt idea.  The right thing to do is to support limited government, better tax policy, and growth strategies that will encourage entrepreneurship and economic development.  The right thing to do is transform the Medicaid program to improve access, care delivery, and overall healthier outcomes. It’s not just the right thing, but also the smart thing to do.

Governor Rolls the Dice with Education Funding

On Monday, we heard many grandiose promises from the Governor relating to new policies he is supporting and the budget he is proposing to support those promises.  On some of his broad-based ideas, we find common ground.  However, upon a closer examination of what few specifics he offered, it is becoming clear that he has made promises that are a gamble and could require massive new taxes and spending that Missourians are likely to be more than skeptical about when they see the numbers.  What is worse is that many of these promises will come at the expense of the prosperity of the next generation.

You heard this week that the Governor is proposing that the A+ program will be taken statewide.  What you didn’t hear is that the budget assumes this expansion will only cost $1 million more.  How one assumes that a $30 million program only needs $1 million more to expand statewide is unreasonable and indefensible.  This roll of the dice will not pay off and will cost the state far more than he suggests.  We need to be honest with ourselves when we propose program expenditures.  Moreover, we need to be honest with the people of Missouri.

You also heard that the Governor is adding $100 million to K-12 education in his budget.  What you didn’t hear is that his budget relies on three key legislative proposals simultaneously being passed by the legislature that might bring in extra money.  Only one of these proposals has ever been considered before the legislature and has a history of failing each year - common sense tells us what result we should expect again this year.

What Can We Realistically Expect?

The Republican-led legislature will be moving pragmatically forward over the coming days, weeks, and months to craft a budget that will be based on sounder judgment.  We won’t make you promises that we know will likely fall through.  This commitment to fiscal responsibility will have political consequences.  You will hear that we are “cutting” money for kids or the disabled.  What will actually be happening is a rational, fiscally-responsible, and honest appropriation of funds that the state will actually receive instead of money we dream it will receive.  We will be forthcoming.  We will be transparent.  You deserve no less.

Bonding

By now I am sure you are well aware of our intent here in the Missouri House of Representatives to promote a bonding issue to fund renovations to our state’s infrastructure.  As a strong fiscal conservative, with a crystal clear record of promoting the principle of living within your means, my decision to back the idea of bond issuance deserves a thorough explanation.

In 1982, then Governor Kit Bond was successful in his efforts to convince the Missouri Legislature and a majority of Missouri voters to agree to a bond issuance of $600 million in order to fund building and repair projects across the State of Missouri.  The resounding success of this initiative can be seen all across our great state.  The list of projects completed with this money is vast and includes, but is not limited to, the construction of the Western Missouri Correction Center, the Science Building at UMSL, the Mineral Engineering and Management Building at Missouri S&T, the Business Building at MSU, the Law School Building at UM-Columbia, the Business and Public Administration Building at UMKC, the Recreation Facility at MSU, the Agriculture Engineering Building at UM-Columbia, five group homes in Jackson County for the Department of Mental Health, the Multipurpose Recreational Facility at UMKC, the Major Events Facility at MSU, and the Health Sciences Library at UM-Columbia.  As if this were not enough, this bond also paid for numerous additions, renovations, expansions, and maintenance/repair projects to existing facilities across the state.  Furthermore, it provided funding necessary for soil and water conservation projects, storm water control grants, rural sewer and water system grants, and major park facility improvements.  Having just completed the final payment on this bond and reflecting on what was accomplished; it is crystal clear that it is a success story worth repeating.

After reviewing all the aspects of this issue ranging from its positive economic impact, to the desperately needed improvements to outdated and failing infrastructure, to the historically low interest rates we enjoy as a state with a AAA credit rating, it is clear to me that this is the correct path for our state.

In next week’s report I will address how a bond issuance would directly, and positively, impact you and your family in the years to come.