Mid-Missouri legislators preparing for new session

Expect lawmakers to work on tax cut, economic development and money bills throughout the legislative session that starts Wednesday, Jefferson City Republicans Mike Kehoe and Jay Barnes both said last week.

"You know, obviously, that (tax cut) was a big issue last session," state Sen. Kehoe said. "That was a large conversation in veto session (in September) - and the governor indicated that, if some fine tuning was done, he would be open to that."

Kehoe said reducing taxes for all Missourians is an important public policy plan.

"I've always thought that Missourians know how to spend their money better than anybody in state government ever will," he explained.

Barnes, a state representative, foresees three main debate topics during the next five months, with "Medicaid transformation" at the top of his list.

"The second (issue) is this growing tension between an economic development policy based on improving the tax climate for every Missourian, versus the so-called "jobs tax credits,'" he explained. "That's really two different discussions.

"The first discussion is on tax cuts and the second discussion is on what's called "tax credit reforms.'"

Both agreed last year's debate was heated, especially after Gov. Jay Nixon vetoed a tax cuts bill last year that would have reduced individual income tax rates by 1 percent, over at least a 10-year period, and reduced business income taxes more quickly.

Barnes said, for 2014: "It's my hope that the focus gets to be on something that has a chance to get across the finish line - which means we have to come up with something that can do one of two things, either get 109 votes, or it can get the support of the governor.

"Those things, while not being identical, are actually, probably, fairly close together.

"I think that means that we've got to come up with something that is a little smaller than what passed in the bill last year."

Nixon last week announced he'll deliver the annual, constitutionally required State of the State address on Jan. 21.

His budget proposal for the 2014-15 state business year will be released at the same time.

Although he hasn't announced many specifics of that budget plan, Nixon has said he'll push the Legislature to approve expansion of the Medicaid system as envisioned in the federal Affordable Care Act.

Among other things, Congress said the federal government would pay for the expansion for the first three years, and for 90 percent of it after that first three years.

The General Assembly's Republican leadership didn't support that idea last year - at least partly because they don't trust the federal government to be able to afford its promised financial support.

The GOP leadership hasn't voiced any support for the idea this coming year, either.

Barnes sponsored a bill last year to make some changes in the way Missouri delivers Medicaid support, but expects another lawmaker to sponsor a proposal to change Medicaid this year.

"I am in favor of giving Missouri the most market-based Medicaid system in the entire country," Barnes said last week, "and doing it in a way to make it, actually, become a reality."

Both men also predicted lawmakers will have a serious discussion of Missouri's "school transfer" law.

State law says students are to attend the public schools where they live - or to pay out-of-district tuition if they choose to go to another district and that districts accepts them.

But the transfer law, originally written as part of the 1993 education reform bill, allows students to go to a neighboring district without a penalty, if they live in a public school district that the Elementary and Secondary Education department has rated as "unaccredited."

The issue already has surfaced in both the St. Louis and Kansas City areas.

"Our rural Missouri readers don't really see much when it comes to that, because it's not an issue that's right in our backyard," Kehoe acknowledged. "I think it's one of those issues where you have to be a representative or senator - a legislator - for policy for the entire state. ...

"I think we've got to work together on some of these broader, bigger-picture issues, so that we can work towards a common goal in a lot of different areas."

Barnes added: "St. Louis and Kansas City (are) economic engines for the state of Missouri.

"And, if the engine sputters because it can't get the right combination of materials, of human capital, to make it run right through a good education system, then the whole car has some trouble. ...

"I think the education systems in those two cities are vitally important to the future of the state of Missouri."

Kehoe last year sponsored a bill that would have ordered a statewide vote on a proposal to raise the state's sales tax by a penny, for a 10-year period, to pay for transportation improvements around the state.

An initiative petition proposing a constitutional amendment for that sales tax has been approved for circulation to get signatures.

"What I really want is for Missourians to have an option to vote, to decide if they think funding their infrastructure needs is appropriate through another channel, other than the current gas tax model," Kehoe said.

Kehoe also backed a bill last year that would have allowed AmerenMissouri to raise customers' rates after making infrastructure improvements, without needing the Public Service Commission's approval first.

He hasn't pre-filed that bill for the coming session, but expects lawmakers will debate the idea.

Barnes has pre-filed bills involving health care facilities and public schools, and leave time for state employees who also are foster parents.

"I'm working on some bills relating to the protection of privacy rights," he said. "I'm working on a bill eliminating some fraud in the welfare system.

"(And) I'm working on a few, little education bills - and I should be able to file all of them within the next two or three weeks."

House Speaker Tim Jones, R-Eureka, and Senate President Pro Tem Tom Dempsey, R-St. Charles, will offer their visions for this year's session when lawmakers convene at the Capitol at noon Wednesday.

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