(Before we get to the main point of today’s missive, your constant observer must confess that he feels a slight fever and has trouble breathing every time he hears the phrase “new normal.” He would quickly recover if the political and media leaders more accurately referred to the next positive step as the “new ABnormal.” Likewise, he would be interested to see if President Trump could communicate without using the word “beautiful,” including the usual hand gestures.)
Legislative leaders, last we heard, are still thinking of reconvening the session on the 27th despite concerns by some members that the recall will be happening just about the time some analysts say Missouri will hit its Coronavirus peak.
Several issues could be before the House and Senate but the biggest one is the state budget for the fiscal year that starts July 1. The Missouri Constitution says the legislature must adopt a budget by the next-to-last Friday of the session, in this case, May 8.
Our lawmakers face complicated and sad choices. Today we are going to try to explain how our state government has no good alternatives and why. Please stay with us because this will be a long class.
Here’s some history of why the Missouri Constitution requires passage of a budget a week before legislative adjournment and what that means in today’s circumstances.
Last nights of legislative sessions were usually quite wild until 1988. We recall when the legislature adjourned at midnight and the last budget bills, “Midnight Specials,” some called them, hit the floor minutes before the deadline. Chaos might not be an adequate word to describe those minutes when the legislature rushed to pass last minute budget bills. The fact that everybody was exhausted and not a few were feeling the effects of early celebration of the session’s end added to the disorder.
But in 1988, Article 3, Section 25 of the Missouri Constitution was changed to say, “No appropriation bill shall be taken up for consideration after 6:00 p.m. on the first Friday following the first Monday in May of each year.” That left the session’s final week for consideration of regular legislation, created a less chaotic ending, let members get home to their families before midnight and let the reporters file their stories before sunrise the next morning. Your faithful correspondent thinks it was one of wisest laws ever enacted in the state of Missouri. Until then, members of the General Assembly had a tendency NOT to go home after midnight adjournment but to go out to the Ramada Inn after midnight and get really serious about celebrating. And it often was sunrise or later before he could go home from his Missourinet newsroom.
If the General Assembly fails to enact a budget by the deadline, what happens? If economic uncertainty makes it unrealistic to adopt a reasonably realistic budget during the regular session, the Constitution allows the governor to call a special session to get a budget done for the fiscal year starting July 1. The General Assembly also could call itself back. But it will be easier for the governor to do it, and he would. The legislature has never operated a budget on the basis of a continuing resolution, as Congress too often has done, so it is unlikely to take that strategy—-which (to a non-lawyer) seems to be unconstitutional in Missouri anyway.
A special session in June is not unprecedented.
The legislature in 1997 failed to appropriate money for Health and Mental Health, nor did they appropriate money for their own salaries as well as those of judges and statewide officials. That last problem arose when legislators argued they could not appropriate money for themselves and others until they have approved funding for everybody else. Governor Carnahan called a special session that, we recall, started right after the regular session adjourned so the last two budget bills could be approved. It took six days to do it because the legislative process of introducing and passing bills takes a little time.
In 2003, Governor Holden and the legislature got into a big snit and he vetoed appropriations bills for education and social services. He called a special session in June that was unproductive. With time running short, he called another one. The legislature told him to take it or leave it. He finally signed appropriations bills for elementary, secondary, and higher education on the last day of the fiscal year.
Special sessions usually cost more than six figures a week, mostly for legislative travel expenses and per diem payments. However, the expenses of one this year would be significantly reduced by savings realized by the shutdown of the legislature from mid-March until late April—except for the couple of days lawmakers returned this month to pass the important supplemental appropriations bill.
After the legislature approves a budget and the governor signs it, he will have to make sure the state does not fall into constitutionally-forbidden deficit spending. Given what is likely to be an indefinite period of economic uncertainty, it would not be surprising for the governor to sign a budget but withhold funds from various services and programs to make sure the budget remains in balance for the entire fiscal year. He can announce spending restrictions when he signs the budget and he can make adjustments throughout the year, although the later in the year he makes them, the harder it is for agencies and their employees to deal with them.
Under the circumstances any budget the legislature approves is likely to be only a best guess.
Governor Parson will have to adjust it downward, if necessary, to keep it in balance. We have seen examples of that within the last few days when the governor withheld $228 million in the current budget because the diving economy makes the amount of money available for the fourth quarter uncertain.
Education has a tendency to absorb the biggest share of cuts and withholds. Here is why.
Joe and Josephine Missouri might have trouble understanding why it’s so painful to make cuts in the state budget of almost $30.1 BILLION dollars proposed by Governor Parson in the flush days of January. If you are a Joe or a Josephine, we hope we can help you understand some important things about that thirty-BILLION dollars.
The legislature can decide how to spend only about one third of that money and even then it is limited in what it can do.
More than ten billion of those dollars come from the federal government for state-run federally-financed programs.
Another ten billion dollars is considered “other” funds. Those are funds that are dedicated to specific purposes. Gas tax money that goes for our road and bridge system is one example. The Conservation Sales tax money that funds our wildlife areas and Conservation Department programs is another. The special sales taxes that help fund our state parks system and help limit soil erosion is another one. Gambling proceeds that fund a tiny part of education. The legislature can’t fiddle with those because the Missouri Constitution sets them outside of legislative control.
That leaves $10,431,666,579 that the governor’s budget proposal said was under control of the state. But even that is not fully in play because other state mandates require funding for some things. One-third of that ten-Billion goes to Elementary and Secondary Education under the statutory formula for funding K-12 education. Other mandated spending eats up another $5.108-Billion.
So out of that thirty-billion dollars-plus, the legislature actually only has $1.881,921,936 to play with, if you will. But remember, that’s the figure the governor recommended back in January when the restaurants and malls and theatres and bars were open and we could go wherever we wanted to go.
When big budget withholdings have to be made or when cuts have to be made—as they have been and will be—that $1.9 billion dollars is the place to cut. That’s only six percent of the entire proposed budget.
Of that $1.9 Billion dollars, two state departments consume $1.102 Billion—Higher Education and Social Services. The next two are Elementary and Secondary Education ($136 million), and Corrections ($107 million). That chews up about $1.345 Billion of that $1.9 Billion dollars. But there are five other state agencies. The governor proposed $365 million to fund them. There’s another $166 million that falls into the “other” category. A good chunk of those “other” funds go to Elementary and Secondary Education and Social Services with relative pocket change scattered through several other agencies.
In his COVID-19 daily briefing on April 9, Governor Parson was pretty direct. “We’re gonna have to rebuild the budget,” he said. His January proposal is junk because of the pandemic.
It is likely the best-guess budget for the programs and services all of us use will take some really painful reductions for the fiscal year starting July 1. Everybody is going to be hurt to some degree. Programs already dealing with serious problems are going to be dealing with even bigger ones. The biggest programs are going to take the biggest hits because that’s where the money is. People are going to lose jobs. People relying on those programs will struggle even more than they struggle now.
The people we elect to work for us are facing the possibility that they will have to hurt many of us. Do not think that when they show up at the Capitol on the 27th, or whenever the decision is made to reconvene the legislature, that they will not anguish about what they have to do.
If you were in their place, which of YOUR neighbors would you choose to hurt even more than they already are hurting?
Most of us can rage against our circumstances. These folks are the ones we have chosen to get beyond rage and do something about the circumstances facing us. They will have no easy choices.