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Budget lawmakers weigh in on foundation formula promise

JEFFERSON CITY, Mo. — Gov. Jay Nixon made waves during the last two weeks when he made a bold, $600 million promise. At the banquet at the annual  Missouri School Board Association conference, and in other public remarks since, Nixon pledged to fully found the foundation formula by the end of his second term in office.

The formula was adopted in 2005 to calculate just how much the state should be spending on education. Since its adoption, it has been chronically underfunded. The formula is currently nearly $600 million short and a common talking point for both parties as a budget priority.

But the governor’s power to dole out the cash is limited. Nixon will have to offer his budget in January, typically unveiled at the State of the State. Nixon has pledged more money for higher education in the next budget, as well more education funds across the board.

“We haven’t seen any details or specifics yet,” says Rep. Chris Kelly, D-Columbia. Kelly served as budget chairman during his first tenure in the Missouri House and now the 17-year veteran of the Capitol is the ranking minority member on the budget committee. “I’ll be interested in his actual proposals. It’s really easy to talk about big goals, but it’s harder to talk about specific implementation.”

Rep. Rick Stream
Rep. Rick Stream

House Budget Chairman Rick Stream, R-Kirkwood, says it is “feasible,” to add $600 million to education, but it would almost certainly require cutting other programs.

“I just don’t foresee the kind of growth you would need to add all those funds without taking from somewhere else,” Stream says. “So I’m interested to see [Gov. Nixon’s] budget. I assume his budget will also include the cost of Medicaid expansion, and so I’m interested to see how he expands those costs and increases money for education. I think we’ll have to see some real cuts in other places if he wants to try to pay for those things.”

Stream also says he’s willing to reexamine the formula as a whole, calling it “arbitrary.”

“We sort of determined these numbers and just went with it, but maybe it’s time for us to look at it and say ‘is this really adequate? Do we need more? Do we need less?” Stream says. “For me, I’m more inclined to make a targeted increase of those funds. Instead of just giving a bunch more money to DESE carte-blanche, let’s find the specific parts of the state and communities that needs this funds and make a more targeted investment.”

Sen. Ryan Silvey, R-North Kansas City, served as House Budget Chairman before moving into the upper chamber, where he sits on the Appropriations committee. Silvey said during Nixon’s final term, the total cost of Medicaid expansion will no longer be covered by the federal government.

“The feds won’t be covering the costs by the time [Gov. Nixon] leaves office,” Silvey says. “I don’t see how he can add millions of dollars to the budget and also be adding such significant portions for education. 100 percent I would put the money into education before expanding something like that.”

And while Medicaid costs continue to rise even when eligibility does not change, Silvey says Nixon may need to make some very difficult, and even unpopular choices.

“Is he going to restore the cuts he made to non-formula related items? This is a governor who has decimated transportation and made sweeping categorical cuts,” Silvey says. “I’ll be interested to see if, A, do the numbers add up? And, B, is this just a talking point for the governor or is he really trying to make this thing whole?”

Rep. Chris Kelly
Rep. Chris Kelly

All sides said they were eager to see Nixon’s budget in January. Right now, the House, Senate and Governor’s offices are awaiting the consensus revenue estimates, which will help determine how much money the state will have to spend in the next fiscal year. Nixon’s office has said they are formulating a budget now with more education funds but declined to provide specifics, House and Senate lawmakers said they have not been contacted by Nixon or his staff on the budget yet, but that the process will begin more seriously in December.

“Lots of governors make lots of promises,” Kelly says. “Is he going to help us find the revenue? We need specifics first and I’m looking forward to it. I am very encouraged. I haven’t had any communications yet from [Nixon’s] office. I don’t know if that’ll change, but I hope so.”