budget in brief all 1-25

Fiscal Year 2014 Budget & Legislative PrioritiesMissouri

Jeremiah W. (Jay) Nixon - Governor

1www.mo.gov

GOVERNOR’S MESSAGE

2 Fiscal Year 2014 Missouri Budget & Legislative Priorities www.mo.gov

ACCOMPLISHMENTS

“”

When we come together – stand together – work together, there is no limit to what Missourians can accomplish.

~ Governor Jay Nixon

LEADERSHIP:• Balancedthebudgetwithoutraisingtaxes.• Cut$1.8billioninstatespending.• RetainedMissouri’sAAAbondrating.• Trimmedthestate’spayrollbymorethan

4,300positions.• Placedmoreservicesonlinetosavetimeand

moneyfortaxpayers.• Reducedtheadministrativecostsofstate

government.

JOBS:• RatedasoneofthetopU.S.statesfor

business.• Beganphase-outofthestate’scorporate

franchisetaxoverfiveyears.• CalledaspecialsessiontopasstheMissouri

AutomotiveManufacturingJobsActandannouncedhistoricinvestmentsbyFordandGeneralMotorstosavethousandsofjobsandcreatemorethan3,200newjobs.

• Securedasignificantfundingincrease,morethan50percent,forcustomizedjobtraining.

• Signedlegislationprovidingsmallbusinessesataxdeductiontoencouragejobcreation.

• SignedagreementstoexportmoreMissourigoodstoChinaandsignedthefirsttradeagreementwithSãoPaulo,Brazil.

EDUCATION:• Securedatuitionfreezeathighereducation

institutionsfortwoyearsinarow.• ProvidedrecordfundingforK-12

classrooms.• InvestedmillionsofdollarsinTraining

forTomorrow,aninitiativeatMissouricommunitycollegestocreatetheworkforceofthefuture.

• LaunchedandexpandedtheCaringforMissouriansinitiativetoincreasethenumberofstudentspreparingforhigh-demandhealthcarecareers.

• ExpandedA+Scholarshipfundingtorecordlevelssoeverystudentwhoearnsthescholarshipreceivesthefundingtheydeserve.

• EstablishedtheInnovationCampusgrantprogramtotrainstudentsforcareeropportunitiesinhigh-demandfields,cutthetimeittakestoearnacollegedegree,andreducestudentdebt.

Governor Nixon greets WWII veterans at the Mexico Veterans Home after signing legislation ensuring a dedicated funding source for Missouri’s seven veterans homes.

3Fiscal Year 2014 Missouri Budget & Legislative Priorities www.mo.gov

TABLE OF CONTENTS

Accomplishments 2

Leadership 4

Jobs 6

Education 8

Healthy Families 10

Disaster Recovery 14

HEALTHY FAMILIES:• ProvidedinsurancecoverageforthemosteffectivetreatmentforchildrenwithAutism

SpectrumDisorders.• LaunchedthePartnershipforHopeprogramtosupportMissourifamiliescaringfor

lovedoneswithdevelopmentaldisabilities.• ReauthorizedMissouriRxtohelplow-incomeseniorsandthosewithdisabilities

affordessentialprescriptionmedicine.• ProvidedadedicatedfundingsourceforMissouri’ssevenveteranshomes.• Strengthenedlawsagainstthefinancialexploitationofseniorsandpersons

withdisabilities.

DISASTER RECOVERY:• EstablishedtheMissouriDisasterRecoveryJobsProgramtocreate

temporaryjobsforunemployedworkers.• LaunchedtheGovernor’sFaith-BasedCommunityService

PartnershipforDisasterRecoverytorespondinthewakeofmultipledisasters.

• DirectedtheMissouriNationalGuardtocoordinateandsupervisethestate’seffortsinrespondingtohistoricMissouriRiverflooding.

• EstablishedJumpstartJoplintosupporttheconstructionandrehabilitationofhomesforworkingfamiliesandprovidednewbusinessrecoveryresourcesforJoplinemployers.

• EstablishedtheEmergencyCost-ShareProgramtoprovidereliefforfarmersfacingcriticalwatershortages.

Governor Nixon and First Lady Nixon visit with Callaway County farmers Jay and Kim Fischer on Thank a Farmer Day, recognizing the hard work and commitment of Missouri farmers.

Governor Nixon, President Obama and C.J. Huff, Joplin Superintendent of Schools, stand for the Pledge of Allegiance at the 2012 Joplin High School commencement ceremony.


LEADERSHIP

Continuing Sound Fiscal ManagementGovernorNixon’sfirsttermrequiredearly,

decisiveactiontoleadMissourithroughrecenteconomicallychallengingtimes.MissouriretainsitsAAAratingfromallthreeratingagencies–oneofonlyafewstatesinthenation.

GovernorNixonwillcontinuesoundfiscalmanagementbyworkingwiththestatelegislatureto:• Enactataxcreditreformpackagethat

bettermanagesthestate’seconomicincentives.

• AdoptaStreamlinedSalesTaxAgreementtominimizethedifferencesbetweensalesandusetaxregulations.

• Increasecollectionsbyextendingnexusforout-of-statevendorstoeliminatetheircompetitiveadvantageoverMissouribusinesses.

• Provideaone-timeopportunityfordelinquenttaxpayerstopayoutstandingtaxes.

During his first term, Governor Nixon provided strong leadership to keep Missouri’s budget balanced and our state moving forward. Working with the General Assembly, he held the line on taxes, cut spending, and made state government smaller, smarter, and more efficient.

Transforming State Government to be Smaller, Smarter and More EfficientGovernorNixoncontinuestoreviewMissouri

stategovernmentoperationstoconsolidateandreduceadministrativecostswhilefocusingdepartmentsondeliveringtheservicescentraltotheirstatutorymissions.TheGovernor’sFiscalYear2014budgetreducesthestatepayrollbyanother190positions,bringingtotalstaffreductionstoover4,500sincehetookoffice.GovernorNixonwillalsoexamineopportunitiestoconsolidatestateprogramsthatwillcutbureaucracy,reduceadministrativecosts,andbetterservetaxpayersandthebusinesscommunity.

Governor Nixon thanks the people of Missouri for the privilege of serving a second term as their Governor during the official 2013 Inaugural Ceremony at the Missouri State Capitol.


“ ”Once again, our steadfast fiscal discipline is truly paying off for the people of Missouri because we’ve balanced our budgets, held the line on taxes and kept our fiscal house in order.


• Enforcesstrictcampaigncontributionlimits.

• Eliminatescommittee-to-committeetransfers.

• Prohibitsofficeholdersfromtakingmoneyundertheguiseof“politicalconsulting.”

• Closestherevolvingdoorbetweenthelegislatureandlobbying.

Enacting Responsible Contribution LimitsThroughouthiscareerinpublicservice,

GovernorNixonhasbeenastrongproponentoftransparentandaccountablegovernment.TostrengthenthecredibilityofMissouri’selectedofficialsandtheconfidenceofthosetheyserve,theGovernorproposesethicslegislationthatincludesfourkeyelements:

First Term Administrative Efficiencies

• Consolidatedstateagencies.• Downsizedthestateworkforce.• Reducedthenumberofboardsand

commissions.• Soldunusedstateproperty.• Cutthestate’svehiclefleet.• Eliminatedunusedofficespace.• Savedmillionsonstateutilitybills.• Negotiatedbetterdealsonbuildingleases.• ImprovedInternetandwebtechnology.• Placedmoreservicesonline.• Reducedstateemployeetravel.• Eliminatedautomaticincreasesin

procurementcontracts.• ConsolidatedMedicaidfraudinvestigation

efforts.Governor Nixon delivers his State of the State Address to the legislature.


JOBS

“”

Missouri’s stable and competitive business climate is helping to move our economy forward, while creating jobs and prosperity for more Missourians. ~ Governor Jay Nixon

Missouri.TheStrategicInitiativeforEconomicGrowthisaroadmaptojobs,economicgrowthandprosperity.Itfocusesonseventargetedindustriespoisedtocreatejobsandeightstrategicobjectivestodriveeconomicgrowth.TheStrategicInitiativeforEconomicGrowthformsthebasisofGovernorNixon’sjobsproposals.

TheGovernorwillworkwiththeGeneralAssemblytogiveMissouriacompetitiveedge

Governor Nixon’s top priority continues to be creating jobs for Missourians. The state’s economy is improving – Missouri businesses are hiring, the state’s exports are accelerating, and companies are looking to expand.

Giving Missouri a Competitive EdgeDuringhisfirstterm,theGovernorworked

withhundredsofbusiness,labor,localgovernmentandeducationleadersineverycornerofthestatetodevelopagrowthplanfor

Governor Nixon helps break ground for the new headquarters of Freightquote on the south side of Kansas City. The expansion of the company in Missouri is expected to create more than 1,300 new jobs over the next four years.


increatingjobsandspurcapitalinvestmentacrossthestate.TheGovernor’sproposalwillstreamlinethestate’sbusinessincentiveprograms,cutbureaucraticredtape,andensureaccountabilityandbudgetcertainty.

Strengthening Job Training Efforts Trainingforworkersisatoppriorityfor

companieslookingtocreateorretainjobs.TohelpMissourimaintainahighly-skilled,highly-competitiveworkforce,GovernorNixonproposes:• $2millioninadditionalfundingforthe

state’sCustomizedTrainingProgram.• Streamliningthestate’sthreeseparate

industrytrainingprogramstobebusiness-friendlyandmarketabletocompanieslookingtorelocateorexpand.

• Enhancingthelevelofservicesdesignedtoimproveworkerskills.

Public Improvement Project JobsGovernorNixonsupportstakingadvantageof

record-lowinterestratestofundpriorityprojectstoimproveK-12education,stateparks,collegeresearchfacilitiesandbuildingsatFulton

StateHospital.HewillworkwiththeGeneralAssemblyonatargetedandfiscallyresponsiblebondissuance,paidforthroughsavingsachievedfromtaxcreditreform.

Export MissouriBecauseexportingMissouriproductsoverseas

createsgoodjobshereathome,GovernorNixonhasmadeexpandingMissouriexportstoothercountriesatoppriority.Exportshavegrowneveryyearsince2009andreachedrecordlevels.TheGovernor’sFiscalYear2014budgetincludesanadditional$2.3milliontohelpbusinessesmarkettheirproductsoverseas.

Promoting Missouri’s Many Tourist AttractionsMissouriboastsbeautifulstateparks,thriving

metropolitancentersandmanyfamily-friendlyattractions.Aninvestmentintourismcreatesjobs,bringsfamiliestoMissouriandgeneratesadditionalresourcestokeepourstatemovingforward.GovernorNixon’sFiscalYear2014budgetincludesanadditional$6milliontoenhanceeffortstoshowcaseMissourithroughpartnershipsinthetravelandtourismindustry.

Governor Nixon and First Lady Nixon enjoy opening day of trout season at Roaring River State Park.

$6.9

$9.3

$10.6 $10.7

Quarter 3 2009 YTD

Quarter 3 2010 YTD

Quarter 3 2011 YTD

Quarter 3 2012 YTD

Export Growth (in billions)


EDUCATION

believesthatearlychildhoodeducationisasmartinvestmentwithabigreturn.HisFiscalYear2014budgetincludesthefollowingforearlychildhoodeducation:

• $10millionforadditionalgrantstopreparechildrenforkindergartenthroughtheMissouriPreschoolProgram.

• $3.5million,each,torestorefundingforMissouri’sEarlyHeadStartprogramsandgrantincentivesforaccreditedprovidersthattheGeneralAssemblyeliminatedlastyear.

Governor Nixon knows the importance of quality public education and understands that education is key to finding a good job in today’s competitive economy. He is dedicated to ensuring that every Missouri child has access to a world-class education.

Quality Early Childhood EducationTheresultsofinvestinginearlychildhood

educationareclear–higheracademicachievement,higher-payingjobsandalowerrelianceonpublicassistance.GovernorNixon

Governor Nixon encourages Missouri students to be part of the A+ Schools Program, which has helped thousands of graduates earn a post-secondary degree.

“ ”Nothing will have a greater impact on our children’s future than the commitment we make today to their education.



Increased Educational Opportunities for K-12 ClassroomsUnderGovernorNixon’sleadership,state

supportforMissouri’spublicelementaryandsecondaryschoolsremainsapriority.TheGovernor’sFiscalYear2014budgetincludesover$100millioninnewfunding–arecordlevelforK-12classrooms.

Moretimeintheclassroomislinkedtohigherstudentachievement.Missouristudentsarecurrentlyrequiredtoattend174days–thefourthshortestschoolyearinthecountry.GovernorNixoniscallingforMissouritoextenditsschoolyear.

GovernorNixon’sbudgetalsoincludesanadditional$1.5milliontoimproveplacementofteachersinthestate’sunderprivilegedoracademicallystrugglingschooldistricts.

Higher Education FundingMoreMissouriansthaneverbeforeare

goingtocollege,andoverthepastseveralyearsMissourihasledthenationinholdingdowntuitioncosts.Thisyear,GovernorNixonwilltakeadditionalstepstohelpMissouri’scollegesanduniversitiesbecomecentersofexcellenceandefficiency,whileexpandingaccesstoaffordableopportunitiesforallstudents.TheGovernor’sFiscalYear2014budgetincludesanadditional$34millioninincentivefundingforhighereducationbasedoninstitutions’achievementofimprovedoutcomes.Thisnewfundingmodel,developedincollaborationwiththestate’spublictwo-andfour-yearinstitutions,willallocatefundingbasedonspecificmeasuresofstudentsuccessandprogress,degreecompletion,professionalcertification,financialresponsibilityandefficiency.

Funding for Higher Education ScholarshipsMissouri’sscholarshipprogramskeepthe

bestandbrighteststudentsinthestateandhelpfamiliesaffordthecostsofcollege.GovernorNixon’sFiscalYear2014budgetincludes:

• $1millioninadditionalfundingtoexpandA+scholarshipopportunitiesforstudentsgraduatingfromanypublichighschool.

• $75.1millioninlevelfundingfortheAccessMissouriFinancialAssistanceProgramandtheBrightFlightProgram.

New Option for Adult StudentsWesternGovernorsUniversity(WGU)isan

accredited,non-profitonlineuniversityfoundedin1997thatisanaffordable,flexibleoptionforadultworkers.GovernorNixonsupportscreatingaWGU-Missouritoexpandaccesstohighereducationthroughonline,competency-baseddegreeprogramsinteaching,business,informationtechnologyandhealthprofessions.

Governor Nixon, Dr. Michael Nietzel, and President Clif Smart survey construction progress at Missouri State University. Photo Credit: MSU Photographic Services


HEALTHY FAMILIES

laidouthisplantoexpandhealthcarecoverageto300,000uninsuredworkingMissourians.Missourihasachoice-wecanputourfederaltaxdollarstoworkhereinMissouribycoveringmorepeoplethroughMedicaidorsendthosetaxdollarstoprovidehealthcareinotherstates.Withfederalfundscovering100percentofthecostsforthefirstthreeyears,phasingdownto90percentin2020,GovernorNixon’sfiscallyresponsibleapproachwillbringbillionsinfederaldollarstoMissouri–dollarsthatwillcreatejobsandgenerateeconomicactivity

To further his commitment to address the critical issue of the growing number of uninsured citizens, Governor Nixon is seizing the opportunity to provide health care coverage in a fiscally-responsible manner.

Strengthening Missouri’s Medicaid SystemThisyearpresentsauniqueopportunityto

reducethenumberofMissourianswithouthealthinsuranceandstrengthenMissouri’seconomy.InNovember2012,GovernorNixon

“ ”It’s the smart thing to do, and it’s the right thing to do.~ Governor Jay Nixon

Governor Nixon meets with visually-impaired Missourians as he advocates against program funding cuts for disabled individuals.


ineverycornerofthestate.Thesavingsandrevenuegeneratedwillmorethanoffsetthecosttothestate.ArecentstudybytheUniversityofMissourifoundthattheadditionalfundingforhealthcarewillcreate24,000newjobsinMissouriin2014alone.Andbecausethecostoftreatingtheuninsuredisnowpassedontoemployersandindividualsthroughhigherpremiums,allowingmoreMissourianstoaccesstimelypreventivecarewillresultinamoreefficient,affordablesystemforeveryone.

ProvidinghealthcarecoverageforuninsuredMissouriansisthesmartthingtodo,andtherightthingtodo,forthepeopleofMissouri.GovernorNixonwillworkwiththelegislaturetofindthebestfitforMissouribydesigningahealthbenefitthatwillinclude:

260,000

268,000

277,000

292,000

308,000

230,000 240,000 250,000 260,000 270,000 280,000 290,000 300,000 310,000 320,000

FY14 FY15 FY16 FY17 FY18

Missourians Newly Covered by Medicaid (Projected)

5%

7%

9%

11%

13%

15%

17%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Health Insurance Statistics

United States Missouri

Year

Perc

ent U

nins

ured

• Anautomaticnullificationprovisionifthefederalgovernmentfailstofunditsshare.

• Incentivesforwellness.• Payforperformanceforproviders.• Personalresponsibilityrequirementsfor

clients.• Accountabilitymeasuresforparticipating

healthcareplans.

Governor Nixon announces his plan to provide health care coverage to additional Missourians at Truman Medical Center in Kansas City.


HEALTHY FAMILIES

thePartnershipforHopetoprovidefamilieswithservicessoonerthanpreviouslypossible,delayingoravoidingtheneedforresidentialorinstitutionalcareinmanycases.Theprogramwillassistanestimated2,500individualsbytheendofthecurrentfiscalyear.GovernorNixon’sFiscalYear2014budgetincludesanadditional$10.2milliontoserveanother1,015Missourians.

Strengthening Missouri’s Mental Health SystemRecenttragedieshaveraised

nationwideawarenessoftheneedtoaddressunmetmentalhealthneeds.GovernorNixon’sFiscalYear2014budgetincludesanadditional$10.1millionto:

• ExpandMentalHealthFirstAidTrainingforeducators,students,lawenforcement,churchleaders,employersandotherkeyindividualstoprovideabasicunderstandingofmentalillnessandprovideresourcesonhowtorespond.

• ContractwithCommunityMentalHealthCentersformentalhealthliaisonsacrossthestatetoworkwithlawenforcement,courts,schools,treatmentprofessionalsandfamiliestoimprovecoordinationforpeoplewithmentalillnessandsubstanceusedisorders.

• ExpandtheNationalAllianceforMentalIllnessFamily-to-FamilyandBasicsprograms.

• ExpandCrisisInterventionTrainingforlawenforcementspecifictomentalhealthcrisissituations.

• Fundemergencyroomenhancementprojectstodevelopmodelsformentalhealthpatientstobedivertedtospecificallydesignedsystemsofcare.

Partnership for HopeThedemandforhome-andcommunity-based

servicesforindividualswithdevelopmentaldisabilitiespreviouslyresultedinalargebacklogofMissourifamilieswaitingforhelp.In2010,GovernorNixonannounced

0

944

1,448

2,548

3,563

0

500

1000

1500

2000

2500

3000

3500

4000

FY2010 actual FY2011 actual FY2012 actual FY2013 projected

FY2014 projected

Partnership for Hope Participants

Governor Nixon and First Lady Nixon promote good health by being outdoors through the Children in Nature Challenge.


Accessing Quality Child CareAffordable,qualitychildcareisvitalto

parents’abilitytoremainintheworkforceandensurechildrenwillbesuccessfulinschool.Currentlylow-incomeparentsandcaretakerswhoareemployedorparticipatinginjobtrainingoreducationalactivitiesareeligibletoreceivefinancialsupporttoaccessaffordablechildcare.GovernorNixon’sbudgetincludesanadditional$10.6millionto:

• Expandtransitionalchildcaresothefamiliesof1,050childrenreceivethisimportantbenefit.

• Addasecondleveloftransitionalchildcarefor1,750children.

• Increaseratesforlicensedandregulatedchildcareproviders.

Support for the Developmentally Disabled, Victims of Domestic Violence and SeniorsGovernorNixonhasproposedthefollowing

additionalfundingintheFiscalYear2014budgetto:

• Providehome-andcommunity-basedservicesforanadditional735individualswithdevelopmentaldisabilities.

• Addcapacityatsheltershousingdomesticviolencevictimsbyexpandingtransitionalhousingandenhancingresidentialandsupportservices.

• Providehome-deliveredmealstoseniorcitizensthroughthestate’sAreaAgenciesonAging.

Governor Nixon meets with Partnership for Hope families in Rolla, Missouri.


DISASTER RECOVERY

TheGovernorledthestate’sresponsebytakingimmediateactiontodevelopanemergencyprogramprovidingurgentrelieftofarmersfacingcriticalwatershortages.Thenewemergencycost-shareprogram:

• Fundedmorethan5,300projectswhereimmediatereliefwasneeded.

• Providedmorethan$21milliontodrillnewwells,deepenexistingwellsorundertakenewprojectstogetwatertolivestockandcrops—90percentoftheeligibleprojectcosts.

• Partneredwithruralelectriccooperativestoexpediteelectricalconnectionstoservicewaterprojects.

Severe Storms Tore through MissouriJustninemonthsafteroneofthenation’s

worsttornadoesdevastatedaMissouricommunity,severeweatheronceagaincaused

Since 2009, Governor Nixon has shown leadership in helping Missourians recover from natural disasters. With ten emergency declarations, Missouri communities and families have faced severe storms and tornados, unprecedented drought conditions and flooding across the heartland. Governor Nixon took immediate action to make sure his administration deployed people and resources to help those in need.

New Program Assists Missouri Farms during Unprecedented DroughtExtremedroughtconditionsin2012put

manyMissourifarmsatriskoflosingcropsandlivestock.AttherequestofGovernorNixon,all114MissouricountiesreceivednationaldisasterdeclarationsfromtheU.S.DepartmentofAgriculturetoassistthesefarmsandfamilieswithlow-interestloansandotherfederalassistance.

Governor Nixon and top public safety officials meet with local leaders to coordinate natural disaster response efforts.


“”

Yes, times have been tough. But Missourians have always been tougher.


Rebuilding a Missouri Community with the Joplin Habitat ChallengeOneofthemostdevastatingweathereventsin

thenation’shistorystruckonMay22,2011,asanEF-5tornadorippedthroughneighborhoodsandbusinessesinJoplin.Lastyear,GovernorNixonestablishedtheGovernor’s2012JoplinHabitatChallenge,partneringwiththeJoplinAreaHabitatforHumanityandMissouri’snationalathleticorganizationstobuildnewhomesinJoplin.Volunteerscompletedthirteennewhomesandworkcontinueson22more.Morethan540Missourianshavepartneredwith500volunteersfromthestate’snationalsportsorganizationstoprovidenearly3,000hoursofconstruction,paintingandlandscapeworkonhomes.

casualties,numerousinjuriesandsignificantwidespreaddamageacrossseveralsoutherncommunities,includingBranson.GovernorNixonactivatedtheStateEmergencyOperationsCenterandimmediatelybeganaidinglocalcommunitieswiththeresourcestheyneeded.

InApril2012,GovernorNixonannounceda$16.5millionNationalEmergencyGranttohelpcreatemorethan1,300temporaryjobstoassistwithclean-upefforts.

Flooding Support Continued in 2012In2011,Missouricommunitiesexperienced

recordfloodingacrossthestateduetowaterreleasesfromupper-MissouriRiverreservoirsandabreachoftheBirdsPointleveeinsoutheastMissouri.Immediateactionsweretakentoassistthesecommunities,andthatsupportcontinuedin2012.

Over$6millionwasprovidedforcommunitydevelopmentblockgrantstoassistseveralMissouritownsandcountiesrepairorreplaceroads,bridges,leveesandotherpublicinfrastructuredamagedordestroyedbydevastatingfloodwaters.

Governor Nixon and First Lady Nixon put siding on a Habitat for Humanity Home in Joplin, one of many built through the Governor’s Joplin Habitat Challenge.

PRODUCED JANUARY 2013www.mo.gov

budget in brief all 1-25

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