Dougherty's Reports

2008:

WEEKLY CAPITOL UPDATE

Thursday, April 24, 2008 * Volume 3, No. 16

NEW LICENSE PLATES VIOLATE LAW WITH POOR GRAMMAR

English teachers and other sticklers for proper grammar could be irate when Missouri’s newly redesigned license plates go into circulation this summer with a grammatically incorrect version of the state’s nickname. The error, which the Missouri Department of Revenue says it will not correct, also apparently violates state law.

The state’s nickname on the new plates will read “Show Me State.” Because the words “show” and “me” form a compound modifier, the rules of grammar require that they be hyphenated, Missouri Southern State University English professor Dale Simpson told The Joplin Globe. State law also requires Missouri license plates to bear the phrase “SHOW-ME STATE,” hyphen included.

About 2.8 million of the new plates already have been made. A revenue department spokesman told The Associated Press the error won’t be corrected on the remaining 10 million plates that are scheduled to be produced.

SENATE RESURRECTS INSURE MISSOURI

The Senate on April 23 gave preliminary approval to a revived version of Insure Missouri, a health care proposal Gov. Matt Blunt proposed with much fanfare last fall that seemingly died after encountering stiff legislative resistance, especially in the House of Representatives. While the new proposal, SB 1283, bears the Insure Missouri name and contains some features of the governor’s plan, it is actually modeled on an Indiana law that provides government subsidies for some low-income workers to buy private health insurance.

Under the bill, Missourians ages 19 to 64 with jobs that pay up to 225 percent of the federal poverty level could qualify if affordable health care isn’t available through their employer and if they pay $1,000 a year into a health care savings account. As with the original Insure Missouri, SB 1283 wouldn’t extend benefits to the elderly, disabled or children, nor would it restore coverage to the more than 180,000 Missourians who lost it due to the governor’s 2005 Medicaid cuts.

HOUSE REJECTS LOWERING WAGES FOR TIPPED WORKERS

The House of Representatives on April 23 rejected legislation to slash the base minimum wage for tipped workers to $2.13 an hour from the current $3.325 an hour. On the mostly party-line vote of 68-82, all Democrats opposed cutting the minimum wage while most Republicans supported doing so.

HB 1851 would have overturned part of a minimum wage ballot measure Missouri voters approved in 2006 with 76 percent support. The standard state minimum wage, which voters also increased and that currently stands at $6.65 an hour, would have been unaffected by the bill.

State Rep. Shannon Cooper, R-Clinton, added the wage reduction provision as an amendment to the bill. Supporters, including the restaurant industry, said the wage hike has proven too costly. Opponents of reducing the wage said it’s wrong to arbitrarily cut wages for tipped workers such as waiters and waitresses.

HOUSE NARROWLY APPROVES TEACHER BARGAINING BILL

With only one vote the spare, the House of Representatives passed legislation to create a legal framework for labor negotiations between public school districts and teachers. The bill, HB 2059, passed 83-67, with one more “yes” vote than the minimum 82 needed to send the measure to the Senate.

The bill was prompted by a 2007 Missouri Supreme Court decision that found the state constitution guarantees government workers, including teachers, the right to collectively bargain with their employer. The decision struck down a 1947 ruling in which the court invented an exemption from bargaining rights for government workers despite the fact that no such exemption exists in the constitutional text.

Opponents of the bill say it would mostly preserve the status quo and not provide true collective bargaining as required by the Missouri Constitution, thus guaranteeing a lawsuit. Supporters say the measure establishes a reasonable system for negotiations that protects the interests of all teachers, not just the majority who votes to be represented by a particular organization.

 

WEEKLY CAPITOL UPDATE

Thursday, April 10, 2008 * Volume 3, No. 14

PSC CHAIRMAN PLAYED KEY ROLE IN PRO-INDUSTRY BILL

During testimony before a legislative committee on April 1, Public Service Commission Chairman Jeff Davis took credit for helping utility companies draft 2005 legislation, which later became law, that critics said hurt consumers while increasing profits for the companies. The revelation, reported by the St. Louis Post-Dispatch in an April 4 story, raised further questions about Davis’ impartiality as a member of the PSC, which regulates utility companies.

Davis had previously been accused of a conflict of interest for participating in a private meeting in the governor’s office with AmerenUE officials -- including their then-lobbyist Andy Blunt, the governor’s brother -- in 2006 while a rate increase sought by the company was pending before the PSC. In 2007, an e-mail from Aquila Inc. official became public that indicated Davis privately had assured company officials he supported a proposed merger with another company, which was subject to PSC approval.

HOUSE VOTES TO DEFY FEDERAL GOVERNMENT ON REAL ID

The House of Representatives on April 10 sent to the Senate a bill to prohibit the state from complying with the federal Real ID act, which critics say imposes expensive requirements on states and violates the privacy of citizens. Congress passed the law in 2005 but immediately encountered resistance from state governments.

Six states – Oklahoma, Maine, Montana, New Hampshire, South Carolina and Washington – have already enacted laws prohibiting implementation of Real ID. At least 11 other states, including Missouri, are considering similar legislation. The combined cost to the states of implementing Real ID is estimated at $3.9 billion.

The U.S. Department of Homeland Security has warned states that if they do not comply their residents will be barred from entering federal buildings or boarding airplanes. Critics say that is a hollow threat since it would mean the de facto closure of all federal buildings and airports in those states. The Missouri bill is HB 1716.

BLUNT NAMES EMPLOYEE OF BROTHER TO ETHICS PANEL

Gov. Matt Blunt on April 9 appointed to the Missouri Ethics Commission an associate attorney of the law firm in which Andy Blunt, the governor’s brother, is a partner. If confirmed by the Senate, Michael Schmid, a lawyer with the Jefferson City firm of Schreimann, Rackers, Franka and Blunt, will hold a Democratic slot on the commission. The news release from the governor’s office announcing Schmid’s appointment neglected to mention the Blunt family connection.

Democrats and Republicans are required by law to hold equal numbers of seats on the six-member commission. Under the law, congressional district committees of the political party for which there is a vacancy nominate candidates for the commission. Democratic Party spokesman Jack Cardetti told The Associated Press said Schmid wasn’t nominated by the party. However, the two Democrats who were nominated withdrew due to professional conflicts. As a result, Blunt was free under the law to appoint a nominee of his own choosing.

Cardetti questioned Schimd’s Democratic credentials. Schmid donated $250 to Democratic Attorney General Jay Nixon’s gubernatorial campaign on April 1 and told the AP he made the donation, in part, to establish Democratic credentials in advance of his anticipated appointment.

HOUSE REJECTS SCHOOL VOUCHER PROPOSAL

The House of Representatives on April 9 voted 80-58 to strip a private school voucher provision from a bill to raise minimum teacher salaries. As a result, House Majority Leader Steve Tilley, R-Perryville, told The Associated Press he will not allow a final vote on the measure. “That bill will not see the light of day,” Tilley said.

The voucher provision of HB 2040 would have granted tax breaks to donors to a scholarship fund for children with autism or other special needs to attend private or parochial schools. Opponents called the bill a thinly veiled attempt to open the door to taxpayer support of private and parochial schools to the detriment of public school funding. State Rep. Maynard Wallace, R-Thornfield, sponsored the amendment to remove the voucher provision.

The teacher salary component of the overall bill, which was sponsored by House Speaker Rod Jetton, R-Marble Hill, purported to increase the minimum teacher salary to $31,000 a year from the current $24,000. However, no money was appropriated for the increase.

HOUSE PROPOSES AMENDMENT TO RESTRICT SPENDING

On an 84-65 vote, the House of Representatives on April 10 approved a proposed constitutional amendment that would severely restrict state spending. If also approved by the Senate, the measure would go before Missouri voters on the November ballot.

HJR 70 sponsored by House Budget Chairman Alan Icet, R-Wildwood, would limit annual growth in general revenue spending to the rate of inflation with a further adjustment for population increases. Supporters say the amendment is needed to further control state spending. Opponents counter that it would hamstring the ability of government to provide necessary state services. Colorado suspended a similar constitutional provision after it caused a state budget crisis.
 

WEEKLY CAPITOL UPDATE

Thursday, April 3, 2008 * Volume 3, No. 13

HOUSE PASSES PROPOSED AMENDMENT TO LIMIT TAXES

The House of Representatives on April voted 133-19 in favor a proposed constitutional amendment that would require local governments to roll back their property tax levies following reassessment. If approved by the Senate, the measure would go on the statewide ballot in November.

Property reassessment occurs every two years. An existing constitutional provision seeks to prevent taxing jurisdictions from profiting from rising property values by requiring them to reduce their tax rates so they collect about the same amount of money as they did before reassessment, not counting the value of new construction and an inflationary adjustment. Because many jurisdictions are below their maximum authorized tax rates due to past rollbacks, however, some jurisdictions decline to reduce their rates further, resulting in higher taxes for property owners.

HJR 43 sponsored by state Rep. Chuck Portwood, R-Ballwin, would require taxing jurisdictions to roll back from the actual rate they were charging prior to reassessment instead of the higher authorized rate to close what supporters view as a constitutional loophole. Opponents say it would cost financially strapped local governments and school districts millions of dollars in tax revenue.

SENATE ENDORSES BILL TO CRACK DOWN ON IMMIGRATION

The Senate on April 3 voted 26-7 in favor of a wide-ranging legislative package intended to crack down on illegal immigration. The bill, SB 858, now heads to the House of Representatives. Provisions of the bill include prohibiting illegal immigrants from receiving most forms of state assistance, barring them attending public colleges and universities in most cases, requiring police to check the immigration status of arrestees and punishing businesses for knowingly employing illegal workers.

MOTORCYCLE HELMET LAW REPEAL WINS HOUSE APPROVAL

In what has become an annual ritual, the House of Representatives on April 3 approved a bill to repeal Missouri’s motorcycle helmet law for riders age 21 and older. The bill typically passes each year in the House, where most lawmakers believe wearing a helmet should be a personal choice and not a government mandate, only to be blocked in the Senate by safety advocates. The House sent the measure, HB 1393, to the Senate on 94-52 vote.



HOUSE NARROWLY APPROVES LIMITING POWER OF COURTS

With the bare minimum number of votes required, the House of Representatives on April 3 voted 82-68 in favor of a proposed constitutional amendment that would limit the authority of state courts. Majority House Republicans shut down debate to force the vote after more than an hour of discussion.

HJR 41 sponsored by state Rep. Jane Cunningham, R-Chesterfield, would prohibit state judges from ruling in cases involving taxation. Supporters say it would prevent judges from imposing tax increases, something a Missouri judges have never done as they are already prohibited from doing so by the state constitution. Opponents say it will prevent Missourians from seeking redress in state courts in legitimate disputes involving taxation.

The measure now goes to the Senate, which hasn’t acted on previous attempts by the House to strip state courts of authority. If the proposal does clear the Senate, it would go on the statewide ballot in November.

HOUSE APPROVES M0RATORIUM ON NEW CASINOS

The Missouri Gaming Commission would be prohibited from licensing any new casinos until 2010 under legislation that won first-round House approval on April 2. Supporters say the moratorium is needed to gage the strength of the gambling market, particularly in the Kansas City area, where Missouri casinos will soon face competition from new facilities in Kansas.

As currently written, however, HB 1929 would prevent the licensing of casino that is already under construction in St. Louis County. When the Gaming Commission approves a new casino it doesn’t issue a license until after construction in completed.

The bill’s sponsor, state Rep. Shannon Cooper, R-Clinton, said he will seek changes so the St. Louis facility isn’t affected. Opponents of the bill say the market – not an arbitrary limit imposed by the state – should determine how many casinos operate in Missouri.

 

WEEKLY CAPITOL UPDATE

Thursday, Feb. 21, 2008 * Volume 3, No. 7

FUNDING FOR UNIVERSITY BUILDINGS CLEARS LEGISLATURE

The Senate on Feb. 18 gave final approval to $46 million in funding for new medical buildings at the University of Missouri’s Columbia and Kansas City campuses. Last year state Sen. Gary Nodler, R-Joplin, stripped funding for the buildings from a larger capital improvements bill to punish two Democratic senators for their opposition to related legislation.

Under the bill, the Ellis Fischel Cancer Center in Columbia will get $31 million with $15 million for the expansion of a nursing and pharmacy building at UMKC. The funding will come from the $350 million in proceeds raised by the sale of Missouri Higher Education Loan Authority assets the legislature approved last year. The current bill, which had already cleared the House of Representatives, now awaits the governor’s signature to become law.

TAX DEDUCTION PROPOSED FOR STILLBORN BABIES

The Senate Ways and Means Committee on Feb. 18 heard a bill that would allow parents of a stillborn baby to claim the deceased child as a dependent on their state income taxes. SB 1064 sponsored by state Sen. Tom Dempsey, R-St. Charles, would provide such parents with the $1,200 deduction for one year following a stillbirth.

COURT SAYS STATE CAN’T FORCE SEX OFFENDERS TO MOVE

The Missouri Supreme Court on Feb. 19 struck down a 2006 state law that sought to force registered sex offenders who live within 1,000 feet of a school or day care center to move. The unanimous court said the law violated the Missouri Constitution’s prohibition against laws that are retrospective in operation.

A 2004 law prohibited sex offenders from moving within 1,000 feet of a school or other child care facility but didn’t apply to offenders who lived within such proximity before the law took effect. The General Assembly passed follow-up legislation in 2006 to require such offenders to move.

The court ruled unconstitutional only the 2006 changes to the law and let stand the original 2004 statute prohibiting sex offenders from moving near a school. In doing so the court used the same reasoning it applied in a 2006 case that said the state’s mandatory sex offender registry applies only to those who committed sex crimes after the registry was established in 1995.

JUDGE REWRITES BALLOT LANGUAGE ON STEM CELL MEASURE

Cole County Circuit Judge Patricia Joyce on Feb. 13 declared ballot language prepared by the Secretary of State’s Office for a proposed constitutional amendment to ban stem cell research to be “insufficient and unfair” and imposed new language. For similar reasons, another Cole County judge last month invalidated the secretary of state’s ballot language on a proposed initiative to ban state and local affirmative action programs.

The stem cell proposal would effectively repeal a constitutional amendment Missouri voters narrowly ratified in 2006 that prohibits the state from outlawing forms of stem cell research that are legal under federal law and specifically declare such research illegal. Supporters of the current effort still need to collect signatures from registered voters to place the measure on the November 2008 ballot.

SENATE APPROVES REPEAL OF CAMPAIGN FUNDING CAPS

The Senate on Feb. 21 passed a bill to repeal Missouri’s campaign contribution caps and allow individual donors to give unlimited amounts to candidates. The bill passed 24-9, with most Republicans in favor of repealing the limits and most Democrats opposed. The measure must still pass the House of Representatives.

Missouri voters first imposed the contribution limits in 1994 with 73.9 percent in support. Given the overwhelming voter support for the limits, state Sen. Wes Shoemyer, D-Clarence, said voters should decide if they should be repealed. However, Shoemyer’s amendment to place the bill on the statewide ballot was defeated.

Current law limits individual donors to giving $325 to House candidates, $675 to Senate candidates and $1,350 to candidates for statewide office. Political party committees can give 10 times the individual limit.

If the bill, SB 1038 sponsored by Senate Majority Leader Charlie Shields, R-St. Joseph, is signed into law, it would take effect on Aug. 28. As a result, the existing caps would remain in place for the Aug. 5 primaries but be lifted before the Nov. 4 general elections.

WEEKLY CAPITOL UPDATE

Thursday, Feb. 14, 2008 * Volume 3, No. 6

KINDER DROPS OUT OF GOVERNOR’S RACE

Lt. Gov. Peter Kinder, the first Republican to declare his candidacy for governor after Gov. Matt Blunt last month unexpectedly decided to forgo re-election, surprised supporters by dropping his bid for the office. Kinder, who instead seek re-election to his current job, announced his decision on Feb. 8 at the state Republican Party’s annual Lincoln Days event in Springfield.

Kinder’s withdrawal winnows the GOP field to two candidates – State Treasurer Sarah Steelman and U.S. Rep. Kenny Hulshof. While avoiding being part of a hotly contested gubernatorial primary, Kinder’s decision creates a Republican primary in the lieutenant governor’s race. Former state Rep. Jack Jackson, who says Kinder urged him to run for lieutenant governor before abandoning his gubernatorial bid, said he is staying in the race.

HOUSE PASSES BILL TO UNDO TAX HIKE ON KANSANS

By a 145-0 vote, the House of Representatives on Feb. 12 passed a bill to undo a tax hike imposed last year on residents of Kansas who work in Missouri. Sponsored by House Minority Leader Paul LeVota, D-Independence, the bill seeks to head off retaliatory action by the Kansas Legislature.

A bill Gov. Matt Blunt signed into law last year included a provision added by the Senate that ended the practice of allowing people who live in others states but work in Missouri to deduct their home-state property taxes from their Missouri income taxes. This primarily was done to retaliate against Illinois, which doesn’t extend the same courtesy to Missourians who work in that state. The impact on Kansans wasn’t known until lawmakers there complained.

LeVota’s bill, HB 1661, would restore the Missouri tax deduction for out-of-state residents so long as their home state provides reciprocity to Missourians. Blunt initially opposed taking corrective action but eventually relented after intense criticism and threats of retaliation by Kansas lawmakers and now supports LeVota’s bill, which heads to the Senate for further consideration.

BILL WOULD BAR SEX OFFENDERS FROM PHOTOING KIDS

The House Crime Prevention and Public Safety Committee on Feb. 12 held a hearing on a bill that would make it a crime for sex offenders to photograph children without the approval of their parents.

Under HB 1537 sponsored by state Rep. Tim Jones, R-Eureka, violators would face a class A misdemeanor punishable by up to a year in jail and a $1,000 fine. Some committee members, however, questioned whether such a law could be enforced.

WEEKLY CAPITOL UPDATE

Thursday, Feb. 7, 2008 * Volume 3, No. 5

CHIEF JUSTICE VOWS MORE OPENNESS IN JUDGE SELECTION

During her State of the Judiciary address to the Missouri General Assembly on Feb. 5, Supreme Court Chief Justice Laura Denvir Stith promised to provide more openness to the process of selecting nominees for the state’s high court and Court of Appeals. The process came under intense criticism this summer by Gov. Matt Blunt and others during the selection of candidates to replace former Supreme Court Judge Ronnie White.

Under the Missouri Constitution, the seven-member Appellate Judicial Commission headed by the chief justice reviews applicants for court vacancies and submits three finalists to the governor, who must select one of them or forfeit the decision to the commission. Blunt complained that none of his preferred candidates made the final cut before ultimately selecting Patricia Breckenridge to replace White.

Claiming it is exempt from Missouri’s Sunshine Law, the commission has operated in near-total secrecy. Stith pledged that in the future the commission will publicly post the times and locations of its meetings, although the proceedings themselves will remain closed. Stith also said the applications of finalists will be made public, as will general demographic information on all applicants before the finalists are selected.

MoDOT DIRECTOR WARNS OF LOOMING FUNDING CRISIS

Missouri Department of Transportation Director Pete Rahn warned lawmakers that “the bottom drops out of Missouri’s transportation funding in 2010.” Rahn made his comments during his State of Transportation speech to the General Assembly on Feb. 6.

In 2004, voters ratified Amendment 3, which redirected existing state money to transportation from general revenue and authorized MoDOT to sell billions of dollars in bonds to pay for immediate improvements to the state’s transportation system. However, Amendment will leave the state with a $2.62 billion transportation debt.

Beginning in 2010, the department will be forced to shift a significant portion of its budget to paying off the debt, which won’t be retired until 2029. As a result, MoDOT’s construction budget will plummet by more than half from $1.23 billion this year to $569 million in 2010. With the reduced construction budget, MoDOT will “barely be able to maintain our highways,” according to the department.

Although the looming transportation funding crisis has been known since Amendment 3 was ratified, neither Gov. Matt Blunt nor the Republican-controlled General Assembly has taken any steps to prepare for it.

WEEKLY CAPITOL UPDATE

Thursday, Jan. 31, 2008 * Volume 3, No. 4

THREE-WAY GOP PRIMARY EMERGES TO REPLACE BLUNT

In the wake of Gov. Matt Blunt surprise announcement on Jan. 22 that he will not seek re-election, three prominent Republican elected officials have entered the race to replace him. Lt. Gov. Peter Kinder, State Treasurer Sarah Steelman and U.S. Rep. Kenny Hulshof have all announced their plans to seek the GOP gubernatorial nomination in the August primary.

The changes in plans by the three, who had intended to seek re-election to their current jobs, set off a domino effect as numerous potential candidates in both parties began testing the waters to replace them. The winner of the GOP gubernatorial primary will face Attorney General Jay Nixon, the presumptive Democratic nominee, in the November general election.

LAWMAKERS SEEK TO BLOCK BLUNT’S INSURE MISSOURI PLAN

Members of a key House committee on Jan. 30 asked Secretary of State Robin Carnahan to block a proposed emergency rule that would allow the Missouri Department of Social Services to implement the first phase of the governor’s Insure Missouri program. Gov. Matt Blunt last fall announced the proposal to subsidize private insurance for some low-income working Missourians, but the plan has encountered strong resistance in the General Assembly, including from his fellow Republicans.

Blunt insists that the first phase of the plan can be implemented by the social services department through administrative rule and without legislative approval. Members of the House Special Committee on Healthcare Transformation, however, disagree and wrote a letter to Carnahan, whose office is responsible for reviewing proposed administrative rules, saying that the Blunt administration has no legal authority to move forward with Insure Missouri, which has yet to be debated in the legislature.

Administrative rules normally take months to win approval. By seeking an emergency rule, however, the department can bypass the public comment period and implement the rule in as few as 10 days. The House committee members told Carnahan that no emergency exists to warrant circumventing the normal process and urged her to reject the rule, which would delay implementation of the plan.

WEEKLY CAPITOL UPDATE

Thursday, Jan. 24, 2008 * Volume 3, No. 2

BLUNT SHOCKS STATE BY BAILING ON RE-ELECTION

In a surprise announcement that sent shockwaves through Missouri’s political landscape, Republican Gov. Matt Blunt on Jan. 22 announced that he is forgoing an expected bid for re-election this year. Blunt, accompanied by his wife Melanie, dropped the bombshell in a three-minute videotaped announcement first posted on the Internet site You Tube.

Rocked by several scandals and unrelenting criticism over his 2005 health care cuts, Blunt was trailing significantly in most polls in the expected race against Democratic Attorney General Jay Nixon. However, Blunt had built an impressive campaign war chest and in recent months had been acting very much like a candidate, rolling out policy proposals intended to bolster his lagging popularity and producing a constant stream of news releases touting his alleged achievements and blasting Nixon.

In his videotaped announcement, Blunt said he decided not to run again because he “achieved virtually everything I set out to accomplish” in his first term and, therefore, had no need for a second. When asked at a news conference the next day whether he was under criminal investigation, Blunt replied: “I think that’s an offensive question” and did not answer.

With about a month until candidate filing opens and nine months until the November general elections, Republicans are left without a candidate for governor. In the wake of the announcement, several prominent Republicans are considering running, including Lt. Gov. Peter Kinder, House Speaker Rod Jetton, State Treasurer Sarah Steelman, Senate Majority Leader Charlie Shields and U.S. Reps. Kenny Hulshof and Jo Ann Emerson.

Blunt becomes the first Missouri governor to pass on seeking re-election since the 1960s, when the state constitution was changed to allow incumbent governors to seek a second consecutive term.

ETHICS COMMISSION RAISES CAMPAIGN CONTRIBUTION CAPS

As it does in January of every election year, the Missouri Ethics Commission adjusted the state’s caps on individual campaign donations to account for changes in the Consumer Price Index. However, since by statute the commission must round inflationary adjustments to the nearest $25, the limit for House candidates will remain unchanged at $325.

For Senate races the limit will rise to $675 from $650. The cap for statewide candidates went to $1,350 from $1,275. Political party committees can give about 10 times the normal limit.

WEEKLY CAPITOL UPDATE

Thursday, Jan. 17, 2008 * Volume 3, No. 2

GOVERNOR PROPOSES NEARLY $23 BILLION STATE BUDGET

During his 2008 State of the State address on Jan. 15, Gov. Matt Blunt proposed a $22.94 billion state operating budget for the 2009 fiscal year, which begins July 1. The proposed budget would increase total state spending by $1.45 billion – or 6.8 percent – from original FY 2008 appropriations

The governor is also seeking an additional $106.3 million in supplementary spending for the current fiscal year.

GOVERNOR SPENDING $2 MILLION ON E-MAIL ARCHIVE

Amid the continuing scandal over his administration’s deletion of potentially embarrassing e-mails, Gov. Matt Blunt is unilaterally moving ahead with a $2 million plan to permanently archive all e-mails sent or received by most executive branch agencies, The Associated Press reported on Jan. 16.

Blunt has faced criticism over the e-mail issue since the summer. Scott Eckersley, Blunt’s former deputy counsel, claims he was fired for advising the administration that its e-mail deletion practices violated state law. In a wrongful termination and defamation suit recently filed against the governor and four current or former members of his staff, Eckersley said the governor’s office ordered high-ranking administration officials to routinely destroyed sensitive e-mails after The Kansas Star used the state’s Sunshine Law to obtain e-mails that exposed the administration’s efforts to pressure the State Highway Patrol to criticize Attorney General Jay Nixon for not pursuing criminal charges relating to the Taum Sauk reservoir collapse. The patrol’s own investigation had already concluded no charges were warranted.

Rather than seeking money from the General Assembly through the normal budget process, Blunt is using reserve funds to establish the e-mail archive. An estimated $500,000 a year will be needed to maintain the archive, funding that will require legislative approval starting with next year’s budget process.

According to the AP, the state computer system administered by the Office of Administration handles approximately 1.5 million e-mails daily. The OA system includes the governor’s and lieutenant governor’s office and most state agencies. The transportation, conservation and natural resources departments maintain separate e-mail systems, as do the Highway Patrol, the judiciary, the legislature and other statewide elected officials. Those systems aren’t subject to the governor’s archiving plan.

BLUNT RETURNS ONLY HALF OF HIS OVER-LIMIT DONATIONS

Because of a Missouri Supreme Court ruling reinstating the state’s campaign contribution limits, Gov. Matt Blunt was slated to return $4.46 million in over-limit donations. According to his latest campaign finance disclosure report, however, the governor has only returned about $2.2 million to contributors.

John Hancock, the governor’s campaign spokesman, told The Associated Press that the unreturned money is tied up in investments that carry penalties for early withdrawals. The Missouri Ethics Commission gave candidates until Nov. 26 to declare whether they would return over-limit donations or seek a hardship exemption to keep the money. Blunt had said he wouldn’t seek a hardship. The commission set no deadline by which money must be returned or announced penalties for candidates who fail to honor reimbursement pledges.

BOWMAN TO RESIGN AFTER MISDEMEANOR PLEA

State Rep. John Bowman will resign from the Missouri House of Representatives effective Jan. 31 after pleading guilty on Jan. 11 to a federal misdemeanor charge of bribing a bank official. Bowman, who originally had been charged with a felony, is expected to receive probation when he is sentenced on April 3.

Bowman, D-St. Louis, was one of 17 people indicted in January 2007 as part of a fraudulent credit scheme run by Robert Conner, a former vice president of Bank of America’s Chesterfield branch who offered lines of credit to unqualified applicants in exchange for kickbacks ranging from $2,500 to $5,000. In November, Conner was convicted of 36 felony charges relating to the scheme.

WEEKLY CAPITOL UPDATE

Thursday, Jan. 10, 2008 * Volume 3, No. 1

DEADLINES MISSED ON MO HEALTHNET REPORTS

Only one of six reports on various aspects of the state’s health care system that lawmakers required as part of last year’s bill renaming Medicaid as MO HealthNet was submitted on time and three have yet to be finished or even started, The Associated Press reported on Jan. 7.

The reports were due by Jan. 1. Only Attorney General Jay Nixon’s office turned in its mandated report on time. Two reports from the Missouri Department of Social Services were turned in on Jan. 2.

One of the tardy reports is due from the Joint Committee on MO HealthNet, which is to consist of five senators and five representatives. However, no members have yet been appointed to the panel. Reports from the legislative budget office and the recently created MO HealthNet Oversight Committee, which oversees the program, are also late.

JUDGES EXEMPTS LOCAL GOVERNMENTS FROM WAGE LAW

Local governments don’t have to comply with the state minimum wage law voter approved in November 2006, Cole County Circuit Judge Richard Callahan ruled on Jan. 8. Callahan said the way the statute is worded makes it inapplicable to local governments. The judge, however, did not address claims that the law violated various provisions of the Missouri Constitution.

The ballot measure initially raised the state minimum wage to $6.50 from $5.15. As of Jan. 1, the wage increased to $6.65 an hour due to an automatic cost of living adjustment.

FORMER STAFFER SUES GOVERNOR IN E-MAIL SCANDAL

Gov. Matt Blunt’s former deputy counsel sued the governor and four current and former high-ranking members of the governor’s staff for defamation and wrongful termination relating to allegedly illegal destruction of official documents by the administration. Scott Eckersley filed the suit, which seeks unspecified damages, on Jan. 9 in Jackson County Circuit Court.

Eckersley claims he was fired in September after advising his superiors that members of the governor’s staff were routinely violating Missouri’s open records and records retention laws. After the allegations because public last year, members of the Blunt administration orchestrated a smear campaign in an attempt to discredit Eckersley, but quickly back off most of the claims after media outlets questioned their veracity.

In addition to Blunt, the others named in the lawsuit are Ed Martin, the governor’s former chief of staff; Henry Herschel, the governor’s former chief counsel; Rich Chrismer, Blunt’s top spokesman; and Rich AuBuchon, chief counsel for the Office of Administration. Both Martin and Herschel resigned due to the growing scandal late last year.

2007:

WEEKLY CAPITOL UPDATE

Thursday, Dec. 20, 2007 * Volume 2, No. 46

JUDGE LETS ETHICS HEARINGS PROCEED IN SECRET

Cole County Circuit Judge Jon Beetem on Dec. 18 declined to issue a temporary restraining order to prevent the Missouri Ethics Commission from conducting secret meetings to determine if certain candidates can keep money collected in excess of the state’s recently reinstated caps on campaign contributions. State Rep. Margaret Donnelly, D-St. Louis, is suing the commission on claims the so-called “hardship” hearings should be open under the state’s Sunshine Law.

In 2006, the General Assembly passed a law that repealed the campaign contribution limits as of Jan. 1, 2007. On July 19, however, the Missouri Supreme Court ruled the bill unconstitutional on technical grounds and ordered candidates to return over-the-limit funds unless they could prove to the Ethics Commission that doing so would be a hardship. In November, the commission announced that hardship hearings would be held in secret. The commission also refuses to disclose its criteria for determining if a hardship exists. Most candidates have announced that they will return their over-limit donations.

BLUNT PLEDGES TO FUND SOME HEALTH PROGRAMS HE CUT

Nearly three years after eliminating certain health care programs for women and dental and optical coverage through Medicaid, Gov. Matt Blunt on Dec. 18 said he will seek funding for the programs.

The programs were eliminated in 2005 as part of the Blunt administration’s deep cuts to health care that also resulted in more than 180,000 Missourians losing access to medical services. The legal authorization for the women’s health, dental and optical programs was restored as a part of a 2007 bill that renamed Medicaid as MO HealthNet. Blunt and the Republican-controlled legislature, however, refused to fund the programs for the fiscal year that began July 1.

Blunt says the health care funding will be included in his supplemental budget request for the remaining months of the current fiscal year and in the upcoming fiscal year. Blunt does not propose restoring coverage to the 180,000 Missourians who lost it due to his 2005 cuts.

SENATOR IN MIDWIFERY FLAP TO REGAIN CHAIRMANSHIP

Sen. John Loudon will be reinstated as chairman of the Senate Small Business, Insurance and Industrial Relations Committee in exchange for working to repeal a law legalizing midwifery that he secretly slipped into unrelated legislation during the final days of the 2007 legislative session, The Associated Press reported on Dec. 20.

Senate President Pro Tem Michael Gibbons, R-Kirkwood, stripped Loudon of his chairmanship after the deceptive provision was discovered following the bill’s passage. Loudon, R-Ballwin, had been trying to legalize midwifery for several years but without success.

Cole County Circuit Judge Patricia Joyce struck down the midwifery provision in August on the grounds that it was unrelated to the overall bill it was added to in violation of the Missouri Constitution. A group of midwives is appealing the decision. If passed, Loudon’s bill to repeal the provision effectively would trump any decision by the Missouri Supreme Court to overturn the lower court’s decision.

WEEKLY CAPITOL UPDATE

Thursday, Dec. 13, 2007 * Volume 2, No. 45

PSC CHAIRMAN STEPS ASIDE IN MERGER CASE

Public Service Commission Chairman Jeff Davis on Dec. 6 recused himself from deliberations on the proposed merger between Kansas City Power and Light Co. and Aquila Inc. amid claims that he promised to support the deal 10 months before the issue came before the panel. In a Jan. 25 e-mail outlining a private meeting with Davis, Aquila chief executive Richard Green said: “In a nutshell, Chairman Davis indicated his support for the (merger) and wants to get it across the line as quickly as possible.”

Missouri Public Counsel Lewis Mills, who represents consumers before the PSC, said three of the four other commissioners also have had private contacts with the companies and should be barred from considering the matter, which effectively would derail the proposed merger. Opponents of the $1.8 billion deal say it would cost consumers $80 million in higher utility rates.

BUSH NOMINATES LIMBAUGH FOR FEDERAL JUDGESHIP

President George Bush on Dec. 6 nominated Missouri Supreme Court Judge Stephen Limbaugh Jr. for a spot on U.S. Eastern District Court of Missouri. Limbaugh has served on the state high court since 1992. His father, Stephen Limbaugh Sr., is a senior judge on the Missouri eastern district court, where he has served since 1983.

COOPER SENTENCED TO 15 MONTHS IN FEDERAL PRISON

A federal judge on Dec. 10 sentenced former state Rep. Nathan Cooper to 15 months in prison for falsifying visa applications for illegal immigrants. Cooper, R-Cape Girardeau, pleaded guilty to two felony counts of immigration fraud in August and resigned his seat in the House of Representatives shortly thereafter.

The sentence is considerably lighter than the expected 30 to 37 months called for under federal sentencing guidelines. Cooper must serve two years of supervised probation following his release from prison and forfeit $50,000 in legal fees he received as part of the scheme. The Missouri Supreme Court also suspended his license to practice law.

AT&T LATEST COMPANY TO SETTLE OVER BACK TAXES

AT&T will pay $76.3 million to settle a long-running dispute with Missouri municipalities over unpaid taxes on cellular phone service, the St. Louis Post-Dispatch reported on Dec. 12. In September, Verizon agreed to pay $29.5 million to settle its tax tab with the cities.

Numerous Missouri cities sued various cellular phone service providers in 2001 over claims the companies were failing to pay local taxes on cell phone service. The companies argued the local taxes applied only to land-lines as cell phones didn’t exist at the time most of the local taxes had been enacted.

At the urging of the cell phone industry, the Missouri General Assembly passed legislation in 2005 that sought to derail the lawsuits. However, the Missouri Supreme Court later declared the law unconstitutional. Other companies have yet to settle their cases.

DONNELLY SUES ETHICS COMMISSION OVER SECRECY

State Rep. Margaret Donnelly is seeking to force the Missouri Ethics Commission to open hearings on candidate requests to keep money collected in excess of the state’s recently reinstated caps on campaign contributions. Donnelly, D-St. Louis, filed a lawsuit in Cole County Circuit Court on Dec.12 to stop the commission from holding such hearings in secret.

The Missouri General Assembly, despite unified opposition by House Democrats, in 2006 repealed the limits on campaign contributions, which Missouri voters first imposed in 1994. As of Jan. 1, 2007, candidates were allowed to accept unlimited amounts from individual donors. On July 19, however, the Missouri Supreme Court ruled the bill unconstitutional on technical grounds and ordered candidates to return over-the-limit funds unless they could prove to the Ethics Commission that doing so would be a hardship.

In November, the commission announced that any requested hardship hearings would be held in secret. The commission is also keeping secret the criteria by which it will determine whether a candidate has proved a hardship. In her lawsuit, Donnelly contends the commission’s action violates Missouri’s open meetings law.

WEEKLY CAPITOL UPDATE

Wednesday, Nov. 21, 2007 * Volume 2, No. 42

MARTIN OUT, VINCENT IN AS GOVERNOR’S CHIEF OF STAFF

Gov. Matt Blunt on Nov. 20 replaced embattled Chief of Staff Ed Martin with Department of Revenue Director Trish Vincent. At a hastily called news conference to announce the change, Blunt obfuscated on whether he had forced Martin to resign, according to The Kansas City Star. “If you’re confused, that’s my intent,” Blunt told reporters.

Martin is a central figure in the continuing scandal relating to the Blunt Administration’s destruction of public documents and failed attempts to discredit the governor’s former deputy counsel, Scott Eckersly, who says he was fired after he informed Martin and others that the administration was violating the state’s open records and document retention laws. Days before Martin’s departure, Attorney General Jay Nixon appointed an independent team to investigate the administration’s role in this matter and determine whether criminal charges are warranted.

Previously known for being outspoken and candid with reporters, Martin has refused to comment on the scandal since it broke several weeks ago. Martin, whose tenure as chief of staff lasted just 15 months, will continue to draw his $120,000 a year salary until Jan. 4. Vincent, who as revenue director oversaw Blunt’s expansion of political patronage in the awarding of state license fee office contracts, immediately took over as chief of staff and will receive the same salary as Martin.

WEEKLY CAPITOL UPDATE

Thursday, Nov. 15, 2007 * Volume 2, No. 41

ETHICS COMMISSION BEGINS DONATION REFUND PROCESS

Implementing a state Supreme Court directive, the Missouri Ethics Commission on Nov. 8 voted to order candidates who received campaign contributions in excess of the state’s reinstated donation caps to return the excess money or prove a “hardship” that would allow them to keep the funds. The commission, however, did not publicly announce what standard it would use to determine if a hardship exists.

A 2006 state law repealed Missouri campaign contribution limits effective Jan. 1, 2007. The Supreme Court, however, struck down that portion of the law on July 19, leading to the immediate reinstatement of the limits. The 166 candidates who accepted over-limit donations will have the opportunity to individually argue why they should be allowed to keep the money. Such hearing will be closed to the public.

AMBITIOUS BRIDGE REPAIR PLAN FACES ANOTHER DELAY

The Missouri Department of Transportation’s ambitious plan to repair 800 of the state’s worst bridges over five years is facing another delay. The State Highways and Transportation Commission, MoDOT’s governing body, was scheduled to select a contractor for the project on Nov. 13, but postponed the vote because the department wasn’t yet ready to make a recommendation.

The project was previously delayed this spring when the General Assembly failed to pass a bill to give MoDOT the legal authority to finalize the contract. During a special legislative session held in August, lawmakers finally passed the measure.

OUTSIDE INVESTIGATORS NAMED IN BLUNT E-MAIL CASE

Attorney General Jay Nixon on Nov. 15 appointed an independent team to investigate whether Gov. Matt Blunt’s administration broke the law in relation to claims by Scott Eckersley, the governor’s former deputy counsel who says he was fired after advising the governor’s staff it was violating Missouri’s open records and record retention laws.

Nixon named retired Missouri State Highway Patrol Superintendent Mel Fisher, who was appointed to the job by Republican Gov. John Ashcroft, to lead the investigation. RetiredWebster County Associate Circuit Judge Daniel Max Knust, a Republican, will serve as special counsel and have the ultimate say on whether criminal charges should be filed.

WEEKLY CAPITOL UPDATE

Thursday, Nov. 8, 2007 * Volume 2, No. 40

BAN ON POLITICAL USE OF STATE VEHICLES ABSOLUTE

State Auditor Susan Montee says the state law that bans officials from using government vehicles for political trips is absolute and doesn’t allow for political travels even if the state is reimbursed for the cost. Montee’s conclusion came in a routine audit of Lt. Gov. Peter Kinder’s office released Oct. 30.

In September 2006, Kinder’s campaign paid the state $5,757 to cover the cost of political trips in his state car. The Office of Administration had advised Kinder he could use the care for political trips so long as he reimbursed the state. OA’s reimbursement policy, however, is not supported by state law.

Attorney General Jay Nixon’s campaign on Oct. 26 paid the state $47,022 in reimbursement for using his state vehicle. Both Nixon and Kinder say they are no longer using state vehicles to travel to political events.

SCHOOL FUNDING LAWSUIT WILL BE APPEALED

A group of school districts that sued the state over the constitutionality of its public school funding system will appeal to the Missouri Supreme Court after a circuit judge ruled against them on all counts.

The schools filed the lawsuit in January 2004 and it finally went to trial earlier this year. They claimed the state’s 1993 school funding formula and a replacement formula adopted in 2005 provided inadequate funding for education that was unfairly distributed among Missouri’s 524 public school districts. Cole County Judge Richard Callahan rejected those claims in a pair of decisions issued in August and September.

MENTAL HEALTH PLANS TO OUTSOURCE CASEWORKERS

The Missouri Department of Mental Health plans to eliminate the jobs of 484 caseworkers for the developmentally disabled and outsource their duties to private companies.

According to the St. Louis Post-Dispatch, the department says the move will reduce the number of caseloads per worker as private providers can hire workers at a lower cost than the state, thus resulting in more caseworkers at the same overall cost. Critics, however, said the move will result in private companies putting their financial interests ahead of their clients’ needs.

WEEKLY CAPITOL UPDATE

Wednesday, Oct. 17, 2007 * Volume 2, No. 39

AG DEPARTMENT SETTLES SEXUAL HARRASMENT CASE

The Missouri Department of Agriculture on Oct. 5 paid $82,500 to a former employee to settle claims of sexual harassment by former department director Fred Ferrell, who resigned days after the allegations became public in February.

The employee made the allegations in May 2006. In response, Gov. Matt Blunt ordered the Missouri State Highway Patrol to investigate the matter. Several witnesses told the patrol Ferrell made comments and engaged in conduct demeaning to women, including saying that women shouldn’t supervise men and telling the employee who filed the complaint that he wanted to see her in a wet t-shirt contest.

Despite the patrol’s findings, Ferrell was allowed to keep his job and details of the investigation were kept secret for nine months. The cover-up collapsed when the department sued the employee in February in an attempt to force her to accept a settlement that required her silence on the matter, which prompted the employee to counter sue for sexual harassment. The financial terms of the final settlement are essentially the same as the original -- $70,000 for the employee and $12,500 for her attorney.

STATE MAKES FIRST DISTRIBUTION OF MOHELA FUNDS

The state on Oct. 15 distributed the $39.5 million in payments from the recent sale of Missouri Higher Education Loan Authority assets. Under a state law passed this year, a total of $350 million in MOHELA funds will be allocated to pay for campus construction and other projects in the coming years.

The first payments went for the following projects:

·        $16.5 million for the Southeast Missouri State University’s River Campus.

·        $8.5 million to the Missouri Technology Corp.

·        $7 million for the Northwest Missouri State University Plant Biologics Center.

·        $4 million for St. Charles and East Central community colleges.

·        $3.3 million for a University of Missouri-Rolla engineering building.

·        $26,972 for Harris Stowe State University’s Children and Parent Education Center.

·        $22,273 for Missouri State University

·        $6,250 for Truman State University’s Pershing Building. 

JUDGE RULES STATE MEETS MINIMUM SCHOOL FUNDING

Deciding the final remaining issue in a lawsuit challenging Missouri’s system for funding public schools, Cole County Circuit Judge Richard on Oct. 17 ruled the state is meeting the constitutional requirement that at least 25 percent of state revenue be earmarked for public education.

In his initial ruling on Aug. 29, Callahan ruled against the school districts that brought the case on claims that the state’s formula for distributing state funds to local schools violated the Missouri Constitution by providing inadequate funding and unfairly allocating what is provided. At that time Callahan left unresolved the question of what state funds should be counted in determining whether the state is meeting the constitutional 25-percent minimum.

In his follow-up decision, Callahan said that “under every reasonable method of calculation” the 25-percent threshold is being not only met but exceeded. The case, which involves more than half of Missouri’s 524 public school districts, is expected to be appealed to the Missouri Supreme Court.

WEEKLY CAPITOL UPDATE

Thursday, Oct. 11, 2007 * Volume 2, No. 38

STATE MINIMUM WAGE TO INCREASE TO $6.65 AN HOUR

Missouri’s standard minimum wage will increase to $6.65 an hour effective Jan. 1, 2008, according to the state Department of Labor and Industrial Relations. The state’s current minimum wage of $6.50 an hour took effect on Jan. 1, 2007, following voter approval of a ballot measure in November 2006 to boost the wage, which had been set at $5.15 an hour since 1997.

Proposition B, which voters passed with 76 percent support, also calls requires the wage to be adjusted annually for inflation starting in 2008. The pending 15-cent an hour increase in the wage is based on a 2.2 percent increase in the Consumer Price Index from July 2006 and July 2007.

SCHOOL FUNDING LAWSUIT HAS COST $4.6 MILLION SO FAR

A nearly 4-year-old lawsuit challenging Missouri’s mechanism for funding public schools so far has cost state and local taxpayers about $4.6 million, a cost that will increase if the case is appealed to the Missouri Supreme Court as expected.

More than half of Missouri’s 524 public school districts are involved in the case. According to The Associated Press, the districts have spent more than $3.2 million on attorney fees, expert witnesses and other costs. The state has spent at least $1.4 million defending its school funding system.

In August, Cole County Circuit Judge Richard Callahan ruled against the school districts on most counts. He still must rule on certain other issues in the case before it can be appealed.

GOVERNOR NAMES TWO TO COURT OF APPEALS

Without the controversy that accompanied his recent appointment to the Supreme Court, Gov. Matt Blunt on Oct. 10 announced his choices for two of the five current vacancies on the Missouri Court of Appeals. Blunt picked Clay County Circuit Judge James Welsh for a spot on the court’s Kansas City-based Western District and selected former St. Louis County Councilman Kurt Odenwald for an opening on the Eastern District bench in St. Louis.

The governor must make appointments to the Supreme Court and Court of Appeals from lists of finalists submitted by the Appellate Judicial Commission. In filling a Supreme Court vacancy recently, Blunt demanded that the three finalists fill out detailed 111-question surveys, which he then made public.

Critics of the governor’s handling of the appointment process said the surveys, which required extensive requests for documentations, were designed to harass and embarrass the finalists. The Court of Appeals candidates were not subjected to the same treatment.

Two vacancies remain on the Western District, with another spot currently open on the Southern District in Springfield. The judicial commission has yet to announce finalists for those posts.

AUDIT UNCOVERS WASTEFUL SPENDING BY MOHELA

State Auditor Susan Montee on Oct. 11 issued an audit that accuses the Missouri Higher Education Loan Authority of a pattern of wasteful spending, including providing excessive and unjustified benefits and severance packages to agency executives, building an $11 million headquarters without bidding the project and procuring numerous other goods and services without soliciting competitive bids.

Montee said the audit’s findings are incomplete because the agency, which services low-cost student loans, refused certain requests for documentation made by auditors. The agency’s refusal is the subject of a pending lawsuit filed by the auditor’s office.

WEEKLY CAPITOL UPDATE

Thursday, Sept. 27, 2007 * Volume 2, No. 37

GOP LAWMAKER BLAMES SPEAKER FOR VILLAGE PROVISION

State Rep. Dennis Wood, R-Kimberling City, says House Speaker Rod Jetton, R-Marble Hill, is responsible for a recent change in state law that allows landowners to incorporate their property into villages to escape county regulations on development. Wood made his comments in a series of Springfield News-Leader stories published Sept. 25, 26 and 27. Jetton did not respond to repeated interview requests for the stories.

Wood says Jetton quietly added a provision making it easier to create a village to SB 22, an omnibus local government bill the General Assembly passed this year. Wood says Jetton did so without the knowledge of most, if any, other state lawmakers.

The provision enables Lebanon businessman Robert Plaser to incorporate about 500 acres of land he owns in Stone County into the “Village of Table Rock.” The change apparently is to enable Plaser to pull an end-run around the Stone County Commission, which has blocked past plans to develop the property amid community opposition.

Plaser’s company, Evergreen National Corp., filed a petition of incorporation for the proposed village on Aug. 28, the first day the new law took effect. If the issue is placed on the ballot, the village would be created if approved by a majority of the five residents who live on Plaser’s property. The county commission is considering fighting the effort.

Although it appears the change in how villages are incorporated apparently was done at for the benefit of this single property owner, it would allow virtually any property owner in the state to establish a separate village in currently unincorporated areas.

JOINT COMMITTEE MAY SPEND $50,000 ON CONSULTANT

The Joint Committee on Transportation Oversight is considering spending up to $50,000 to hire a consultant to study proposals for funding the reconstruction of Interstates 70 and 44. The panel’s co-chairmen – state Sen. Bill Stouffer, R-Napton, and state Rep. Neal St. Onge, R-Ballwin – have both proposed multibillion dollar tax increases to pay for the improvements.

Stouffer’s plan would impose a 1-cent statewide sales tax to raise $7.2 billion over 10 years. St. Onge proposes a half-cent sales tax combined with higher fuel taxes and license fees to raise $4.1 billion over six years. Neither plan has made any progress in the legislature. If any transportation funding proposal is to be put before Missouri voters in 2008, it will likely be up to outside groups to place it on the ballot via initiative petition.

STATE UNEMPLOYMENT GROWS AT FASTEST RATE IN NATION

Missouri’s unemployment rate jumped to 5.3 percent in August, up from 4.9 percent in July, for the largest single month increase in the nation. The jump in the unemployment rate came despite the fact that Missouri gained 11,000 jobs that month, according to the Federal Bureau of Labor Statistics. However, the job increases in August came after Missouri lost 13,100 jobs during the two preceding months, resulting in a net loss of 2,100 jobs since May.

WEEKLY CAPITOL UPDATE

Thursday, Sept. 20, 2007 * Volume 2, No. 36

ETHICS COMMISSION REVOKES DECISION, TO HOLD DO-OVER

The Missouri Ethics Commission on Sept. 19 voted to rescind its earlier vote on how to implement a recent state Supreme Court ruling reinstating campaign contribution limits. The action came after the Missouri Republican Party sued commissioners for violating the state open meeting’s law in reaching its original decision.

At a Sept. 11 meeting, the commission discussed the issue in closed session and then in an open session and with no public debate approved a motion to implement the court’s ruling. The Republican Party contends the commission’s action was a public policy matter that could not be discussed in private under state law, a view shared by many news organizations.

The commission will hold an open meeting on Oct. 4 to take public testimony on the matter and again vote on implementation. In a supplementary ruling to its opinion striking down legislation that repealed state campaign contribution limits, the court directed the commission to order candidates who accepted donations above the limits during the six-month period the caps were lifted to return the money unless individual candidates can prove doing so would result in a hardship.

GOVERNOR’S HEALTH CARE PROPOSAL FACES CRITICISM

Gov. Matt Blunt’s new proposal for expanding health insurance coverage to more Missourians drew immediate criticism from both Republicans and Democrats over the plan’s projected cost and whether it could realistically deliver on the governor’s promises.

Blunt’s Insure Missouri plan would assist working Missourians who earn too much to qualify for Medicaid in obtaining private health insurance. However, it would do nothing for the tens of thousands of children, senior citizens and disabled people who lost their health care coverage under the governor’s 2005 Medicaid cuts.

After years of saying it would be too costly to restore coverage to the 180,000 Missourians who lost it due to the 2005 cuts, Blunt now claims his plan would cover 200,000 Missourians at a cost of just $46 million in state revenue a year by 2010. Critics dispute that cost as improbably low to cover that many people.

Republican state Reps. Doug Ervin of Kearney and Rob Schaaf of St. Joseph, who both sponsored major health care legislation that passed earlier this year, told the St. Louis Post-Dispatch Blunt would have a hard time winning approval for his plan in the GOP-controlled General Assembly since it would create a large new state program.

WEEKLY CAPITOL UPDATE

Thursday, Sept. 6, 2007 * Volume 2, No. 34

VERIZON AGREES TO SETTLE TAX LAWSUIT

Cellular phone service provider Verizon has agreed to pay nearly $30 million to settle a long-running tax dispute with Missouri municipalities, according to the St. Louis Post-Dispatch. Numerous Missouri cities filed suit against Verizon and other cell phone companies in 2001, claiming the companies were failing to pay local taxes on phone service. The companies argued cell phones weren’t subject to the taxes, most of which were enacted before the existence of cellular technology.