Legislature Passes Budget that Cuts Waste, Invests in Education

Last week the Missouri House and Senate gave final approval to the fiscal year 2016 budget, which reigns in wasteful administrative expenses across state government while protecting critical services.

The budget initially passed by the Senate would have pooled funds within the Departments of Mental Health, Health and Senior Services, and Social Services and made budget cuts across their programs. The House worked hard to hold our position on these budget bills, and the final version rejects the Senate’s lump-sum approach.

Both the House and Senate agreed, however, that targeted cuts were needed to curtail wasteful department spending. The legislature funded a fraud and abuse detection system within the Medicaid Audit and Compliance Unit to save the state money by proactively finding and eliminating Medicaid waste. By cutting administrative costs and travel expenses for executive agencies, we were able to increase funds for programs that really matter to Missouri families.

This year’s budget includes record money, $5.78 billion, for our public schools and continues funding for Parents as Teachers, Teach for America, and virtual education for medically frail students.

Our state’s most vulnerable children will receive enhanced medical care as a result of the money invested in a health home pilot for foster children and in asthma services for Medicaid recipients. The budget also funds a network of mental health providers trained in trauma-informed mental healthcare for children.

You can find a list of budget highlights for each department here.

The House Budget Committee worked diligently to produce a balanced budget, and one of the jobs of the Fiscal Review Committee, which I chair, is to protect that budget. Before a bill that costs more than $100,000 can pass the House, it has to be approved by the Fiscal Review Committee. Our committee examines fiscal notes, which outline the anticipated costs of legislation, and then votes on the bills. In several instances, the committee delayed bills’ implementation by a year because our state cannot afford them in the current fiscal year. Even if a bill passes the General Assembly, however, it does not mean the money will automatically be spent. All programs are subject to appropriations, meaning that the money will not be allocated unless spending authority is included in the budget.

To further enhance fiscal oversight, all conference committee reports now come to Fiscal Review. Conference committee reports are compromise positions reached when the House and Senate pass different versions of a bill. The conference position can be substantially different from the original bill and it is essential for the legislature to know the anticipated cost.