Politics
$78M boost to Missouri’s child care subsidy headed to providers

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Child care providers who accept a subsidy from the state to serve low-income families will see a boost in payments next month, thanks to a $78.5 million funding increase approved by Missouri lawmakers earlier this year.The funding hike, included in the state budget signed by the governor, went into effect July 1.It won’t be reflected in payments to providers until mid-August because the state pays the subsidy retroactively, the month after services are provided.Cortaiga Collins, the owner of Good Shepherd Early Learning Center in St. Louis and Good Shepherd Early Learning Center West in Warrenton, said she was “elated and relieved” to hear about the increase.The majority of children at Collins’ center are low-income and receive state assistance.“I’m hopeful that this is just the beginning of more public investment in early childhood,” she said. “I was very excited to see the difference — it’s a noticeable increase.”The subsidy program is targeted toward encouraging child care providers to offer services to low-income and foster families. The increase in the reimbursement rate was part of Gov. Mike Parson’s legislative agenda seeking to improve access to child care around the state.Almost half of all children in Missouri under the age of 5 — roughly 202,000 kids — live in child care deserts, The Independent and MuckRock found as part of a joint investigation called “Disappearing Day Care.”A child care desert is an area with more than three children ages 5 and under for every licensed child care slot or no licensed slots at all. They exist in every corner of Missouri.Even in areas not considered deserts, where capacity looks plentiful on paper, many providers say waitlists abound, in part because providers struggle to hire staff.Providers often cannot afford to pay their staff more than near-minimum wage with the rates they charge parents. Yet parents can’t afford higher fees that would be needed in order to boost pay.Casey Hanson, director of outreach and engagement at the child advocacy nonprofit Kids Win Missouri, said she hopes the rate increase will expand access to care. She said she’ll also be looking for whether it spurs “shifts in available capacity.”The subsidy does not cover the entire cost of care: Parents often are required to pay the difference between what the state covers and the cost of tuition, but not all can afford to, Hanson said. If parents can’t pay, providers may lose money or opting to accept fewer children.Providers who serve mostly children on the subsidy, and/or who are accredited, also get an additional payment that is a percent of the base-level reimbursement rate — which will be higher because the reimbursement rate will be higher.“Everyone’s kind of waiting until the payment hits in August,” Hanson said, “but people are really excited for what this can mean for programs.”Staff compensationAs of June, roughly 23,000 children receive the subsidy in Missouri — a federal program, administered by states through the Child Care and Development Block Grant. Families apply for the state to directly pay a child care provider part of the cost of care.Only very low-income families qualify in Missouri, along with foster kids. In Missouri, the cutoff is 150% of the federal poverty line, equivalent to an annual income of $41,625 a year for a family of four. There is a benefits phase-out for those between 150% and 215% of the federal poverty level.Missouri’s 2022 market rate survey, which asked providers what they charge, showed the state now pays providers at the 25th percentile toward the cost they charge, on average, for infant care, the 22nd percentile for 4 and 5 year olds, and 21st for school-aged children.The rate increase will bump the rates up to the 58th percentile across the board. Most advocates and providers frame the increase as substantial — even though it still is nowhere near covering the full cost providers charge, or what many see as the true cost of providing quality care.
Annelise Hanshaw
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Missouri Independent Child care advocacy groups gather in the Missouri Capitol rotunda Tuesday afternoon (Annelise Hanshaw/Missouri Independent).
Collins said she is hoping the increase allows her to raise pay and attract qualified staff. She’s searching for seven staff members, which would enable her to serve around 22 more children.“The lack of resources, the financial strain that was previously part of our program, made it difficult for us to incentivize being on our team,” Collins said. “Now with this increase I’m better positioned to adequately compensate my staff.”Collins added, though, that the rate in Warrenton and rural Missouri more broadly, is still “excessively low,” and insufficient for providers to provide high quality care, and she hopes for “greater investment in the rural communities” in coming years.The median hourly wage of a child care worker in Missouri was just under $12 in 2021.Denise Wiese, former longtime director of Lemay Child and Family Center in St. Louis, who now sits on their board, said they have “several classrooms that are closed” due to lack of staffing, and are hoping to enroll around 47 more kids if they can hire new staff, spurred by increased compensation.Wiese said that with the rate increase, the annual reimbursement the center will receive for an infant, as an accredited center in her area, will increase from around $12,700 to $22,300. Most providers, though, receive far less and will see a more-modest increase: Lemay’s reimbursement amount is at the high end based on the center’s geography, serving over 50% children on subsidy and being accredited.“I’ve been with [the center] for over 20 years and I’ve seen very slow progress from the state, just supporting independent centers like ours, that serves such a high percentage of at-risk children,” Wiese said, “…But this is this is significant.”The federal government recommends states pay providers at the 75th percentile of market rates, but few do.Gina Adams, a child care policy expert at the D.C.-based Urban Institute said in an April interview that rate increases “give families more choice” — the state subsidy goes further toward the cost of the providers non-subsidy pay parents are accessing, although it doesn’t open up the entire market to them.An increase in the reimbursement means parents “can go to a slightly more expensive provider who may have a slightly better quality care in their community, if that provider exists,” she said.“It’s important for parents to be able to do that…there’s always more to do, but we have to make progress where we can,” Adams said.The increase is funded by one-time federal American Rescue Plan Act child care relief funds, Mallory McGowin, spokesperson for the Department of Elementary and Secondary Education, confirmed.Pre-k shifts on the horizonThe budget this year also included an expansion of state-funded pre-kindergarten targeted at low-income four-year-olds. There was an increase of $55 million for school-based pre-k, and $26 million for child care facility based pre-k.The priority for children in both programs is to serve those at or below 185% of the poverty line.Hanson said because it is a grant-based process, it will take a few months before being rolled out. The school-based grants are now open to proposals, and the child care based grants will be open soon: McGowin said the state aims to announce the latter grant in early August and award them in September.Parson also advocated for a set of tax credits designed to help the child care industry, but the legislation did not pass this session.This story was originally published by the Missouri Independent, part of States Newsroom.
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Poll: Support for Missouri abortion rights amendment growing

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A proposed constitutional amendment legalizing abortion in Missouri received support from more than half of respondents in a new poll from St. Louis University and YouGov.That’s a boost from a poll earlier this year, which could mean what’s known as Amendment 3 is in a solid position to pass in November.SLU/YouGov’s poll of 900 likely Missouri voters from Aug. 8-16 found that 52% of respondents would vote for Amendment 3, which would place constitutional protections for abortion up to fetal viability. Thirty-four percent would vote against the measure, while 14% aren’t sure.By comparison, the SLU/YouGov poll from February found that 44% of voters would back the abortion legalization amendment.St. Louis University political science professor Steven Rogers said 32% of Republicans and 53% of independents would vote for the amendment. That’s in addition to nearly 80% of Democratic respondents who would approve the measure. In the previous poll, 24% of Republicans supported the amendment.Rogers noted that neither Amendment 3 nor a separate ballot item raising the state’s minimum wage is helping Democratic candidates. GOP contenders for U.S. Senate, governor, lieutenant governor, treasurer and secretary of state all hold comfortable leads.“We are seeing this kind of crossover voting, a little bit, where there are voters who are basically saying, ‘I am going to the polls and I’m going to support a Republican candidate, but I’m also going to go to the polls and then I’m also going to try to expand abortion access and then raise the minimum wage,’” Rogers said.Republican gubernatorial nominee Mike Kehoe has a 51%-41% lead over Democrat Crystal Quade. And U.S. Sen. Josh Hawley is leading Democrat Lucas Kunce by 53% to 42%. Some GOP candidates for attorney general, secretary of state and treasurer have even larger leads over their Democratic rivals.
Brian Munoz
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St. Louis Public RadioHundreds of demonstrators pack into a parking lot at Planned Parenthood of St. Louis and Southwest Missouri on June 24, 2022, during a demonstration following the Supreme Court’s reversal of a case that guaranteed the constitutional right to an abortion.
One of the biggest challenges for foes of Amendment 3 could be financial.Typically, Missouri ballot initiatives with well-funded and well-organized campaigns have a better chance of passing — especially if the opposition is underfunded and disorganized. Since the end of July, the campaign committee formed to pass Amendment 3 received more than $3 million in donations of $5,000 or more.That money could be used for television advertisements to improve the proposal’s standing further, Rogers said, as well as point out that Missouri’s current abortion ban doesn’t allow the procedure in the case of rape or incest.“Meanwhile, the anti side won’t have those resources to kind of try to make that counter argument as strongly, and they don’t have public opinion as strongly on their side,” Rogers said.There is precedent of a well-funded initiative almost failing due to opposition from socially conservative voters.In 2006, a measure providing constitutional protections for embryonic stem cell research nearly failed — even though a campaign committee aimed at passing it had a commanding financial advantage.Former state Sen. Bob Onder was part of the opposition campaign to that measure. He said earlier this month it is possible to create a similar dynamic in 2024 against Amendment 3, if social conservatives who oppose abortion rights can band together.“This is not about reproductive rights or care for miscarriages or IVF or anything else,” said Onder, the GOP nominee for Missouri’s 3rd Congressional District seat. “Missourians will learn that out-of-state special interests and dark money from out of state is lying to them and they will reject this amendment.”Quade said earlier this month that Missourians of all political ideologies are ready to roll back the state’s abortion ban.“Regardless of political party, we hear from folks who are tired of politicians being in their doctor’s offices,” Quade said. “They want politicians to mind their own business. So this is going to excite folks all across the political spectrum.”
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Democrat Mark Osmack makes his case for Missouri treasurer

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Mark Osmack has been out of the electoral fray for awhile, but he never completely abandoned his passion for Missouri politics.Osmack, a Valley Park native and U.S. Army veteran, previously ran for Missouri’s 2nd Congressional District seat and for state Senate. Now he’s the Democratic nominee for state treasurer after receiving a phone call from Missouri Democratic Party Chairman Russ Carnahan asking him to run.“There’s a lot of decision making and processing and evaluation that goes into it, which is something I am very passionate and interested in,” Osmack said this week on an episode of Politically Speaking.Osmack is squaring off against state Treasurer Vivek Malek, who was able to easily win a crowded GOP primary against several veteran lawmakers including House Budget Chairman Cody Smith and state Sen. Andrew Koenig.While Malek was able to attract big donations to his political action committee and pour his own money into the campaign, Osmack isn’t worried that he won’t be able to compete in November. Since Malek was appointed to his post, Osmack contends he hasn’t proven that he’s a formidable opponent in a general election.“His actions and his decision making so far in his roughly two year tenure in that office have been questionable,” Osmack said.Among other things, Osmack was critical of Malek for placing unclaimed property notices on video gaming machines which are usually found in gas stations or convenience stores. The legality of the machines has been questioned for some time.As Malek explained on his own episode of Politically Speaking, he wanted to make sure the unclaimed property program was as widely advertised as possible. But he acknowledged it was a mistake to put the decals close to the machines and ultimately decided to remove them.Osmack said: “This doesn’t even pass the common sense sniff test of, ‘Hey, should I put state stickers claiming you might have a billion dollars on a gambling machine that is not registered with the state of Missouri?’ If we’re gonna give kudos for him acknowledging the wrong thing, it never should have been done in the first place.”Osmack’s platform includes supporting programs providing school meals using Missouri agriculture products and making child care more accessible for the working class.He said the fact that Missouri has such a large surplus shows that it’s possible to create programs to make child care within reach for parents.“It is quite audacious for [Republicans] to brag about $8 billion, with a B, dollars in state surplus, while we offer next to no social services to include pre-K, daycare, or child care,” Osmack said.Here’s are some other topics Osmack discussed on the show:How he would handle managing the state’s pension systems and approving low-income housing tax credits. The state treasurer’s office is on boards overseeing both of those programs.Malek’s decision to cut off investments from Chinese companies. Osmack said that Missouri needs to be cautious about abandoning China as a business partner, especially since they’re a major consumer of the state’s agriculture products. “There’s a way to make this work where we are not supporting communist nations to the detriment of the United States or our allies, while also maintaining strong economic ties that benefit Missouri farmers,” he said.What it was like to witness the skirmish at the Missouri State Fair between U.S. Sen. Josh Hawley and Democratic challenger Lucas Kunce.Whether Kunce can get the support of influential groups like the Democratic Senatorial Campaign Committee, which often channels money and staff to states with competitive Senate elections.
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As Illinois receives praise for its cannabis equity efforts, stakeholders work on system’s flaws

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Medical marijuana patients can now purchase cannabis grown by small businesses as part of their allotment, Illinois’ top cannabis regulator said, but smaller, newly licensed cannabis growers are still seeking greater access to the state’s medical marijuana customers.Illinois legalized medicinal marijuana beginning in 2014, then legalized it for recreational use in 2020. While the 2020 law legalized cannabis use for any adult age 21 or older, it did not expand licensing for medical dispensaries.Patients can purchase marijuana as part of the medical cannabis program at dual-purpose dispensaries, which are licensed to serve both medical and recreational customers. But dual-purpose dispensaries are greatly outnumbered by dispensaries only licensed to sell recreationally, and there are no medical-only dispensaries in the state.As another part of the adult-use legalization law, lawmakers created a “craft grow” license category that was designed to give more opportunities to Illinoisans hoping to legally grow and sell marijuana. The smaller-scale grow operations were part of the 2020 law’s efforts to diversify the cannabis industry in Illinois.Prior to that, all cultivation centers in Illinois were large-scale operations dominated by large multi-state operators. The existing cultivators, mostly in operation since 2014, were allowed to grow recreational cannabis beginning in 2019.Until recently, dual-purpose dispensaries have been unsure as to whether craft-grown products, made by social equity licensees — those who have lived in a disproportionately impacted area or have been historically impacted by the war on drugs — can be sold medicinally as part of a patient’s medical allotment.Erin Johnson, the state’s cannabis regulation oversight officer, told Capitol News Illinois last month that her office has “been telling dispensaries, as they have been asking us” they can now sell craft-grown products to medical patients.“There was just a track and trace issue on our end, but never anything statutorily,” she said.
Dilpreet Raju
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Capitol News IllinoisThe graphic shows how cannabis grown in Illinois gets from cultivation centers to customers.
No notice has been posted, but Johnson’s verbal guidance comes almost two years after the first craft grow business went online in Illinois.It allows roughly 150,000 medical patients, who dispensary owners say are the most consistent purchasers of marijuana, to buy products made by social equity businesses without paying recreational taxes. However — even as more dispensaries open — the number available to medical patients has not increased since 2018, something the Cannabis Regulation Oversight Office “desperately” wants to see changed. Johnson said Illinois is a limited license state, meaning “there are caps on everything” to help control the relatively new market.Berwyn Thompkins, who operates two cannabis businesses, said the rules limited options for patients and small businesses.“It’s about access,” Thompkins said. “Why wouldn’t we want all the patients — which the (adult-use) program was initially built around — why wouldn’t we want them to have access? They should have access to any dispensary.”Customers with a medical marijuana card pay a 1% tax on all marijuana products, whereas recreational customers pay retail taxes between roughly 20 and 40% on a given cannabis product, when accounting for local taxes.While Illinois has received praise for its equity-focused cannabis law, including through an independent study that showed more people of color own cannabis licenses than in any other state, some industry operators say they’ve experienced many unnecessary hurdles getting their businesses up and running.The state, in fact, announced last month that it had opened its 100th social equity dispensary.But Steve Olson, purchasing manager at a pair of dispensaries (including one dual-purpose dispensary) near Rockford, said small specialty license holders have been left in the lurch since the first craft grower opened in October 2022.“You would think that this would be something they’re (the government) trying to help out these social equity companies with, but they’re putting handcuffs on them in so many different spots,” he said. “One of them being this medical thing.”Olson said he contacted state agencies, including the Department of Financial and Professional Regulation, months ago about whether craft products can be sold to medical patients at their retail tax rate, but only heard one response: “They all say it was an oversight.”This potentially hurt social equity companies because they sell wholesale to dispensaries and may have been missing out on a consistent customer base through those medical dispensaries.Olson said the state’s attempts to provide licensees with a path to a successful business over the years, such as with corrective lotteries that granted more social equity licenses, have come up short.“It’s like they almost set up the social equity thing to fail so the big guys could come in and swoop up all these licenses,” Olson said. “I hate to feel like that but, if you look at it, it’s pretty black and white.”Olson said craft companies benefit from any type of retail sale.“If we sell it to medical patients or not, it’s a matter of, ‘Are we collecting the proper taxes?’ That’s all it is,” he said.State revenue from cannabis taxes, licensing costs and other fees goes into the Cannabis Regulation Fund, which is used to fund a host of programs, including cannabis offense expungement, the general revenue fund, and the R3 campaign aiming to uplift disinvested communities.For fiscal year 2024, nearly $256 million was paid out from Cannabis Regulation Fund for related initiatives, which includes almost $89 million transferred to the state’s general revenue fund and more than $20 million distributed to local governments, according to the Illinois Department of Revenue.Medical access still limitedThe state’s 55 medical dispensaries that predate the 2020 legalization law, mostly owned by publicly traded multistate operators that had been operating in Illinois since 2014 under the state’s medical marijuana program, were automatically granted a right to licenses to sell recreationally in January 2020. That gave them a dual-purpose license that no new entrants into the market can receive under current law.Since expanding their clientele in 2020, Illinois dispensaries have sold more than $6 billion worth of cannabis products through recreational transactions alone.Nearly two-thirds of dispensaries licensed to sell to medical patients are in the northeast counties of Cook, DuPage, Kane, Lake and Will. Dual-purpose dispensaries only represent about 20 percent of the state’s dispensaries.While the state began offering recreational dispensary licenses since the adult-use legalization law passed, it has not granted a new medical dispensary license since 2018. That has allowed the established players to continue to corner the market on the state’s nearly 150,000 medical marijuana patients.But social equity licensees and advocates say there are more ways to level the playing field, including expanding access to medical sales.Johnson, who became the state’s top cannabis regulator in late 2022, expressed hope for movement during the fall veto session on House Bill 2911, which would expand medical access to all Illinois dispensaries.“We would like every single dispensary in Illinois to be able to serve medical patients,” Johnson said. “It’s something that medical patients have been asking for, for years.”Johnson said the bill would benefit patients and small businesses.“It’s something we desperately want to happen as a state system, because we want to make sure that medical patients are able to easily access what they need,” she said. “We also think it’s good for our social equity dispensaries, as they’re opening, to be able to serve medical patients.”Rep. Bob Morgan, D-Deerfield, who was the first statewide project coordinator for Illinois’ medical cannabis program prior to joining the legislature, wrote in an email to Capitol News Illinois that the state needs to be doing more for its patients.“Illinois is failing the state’s 150,000 medical cannabis patients with debilitating conditions. Too many are still denied the patient protections they deserve, including access to their medicine,” Morgan wrote, adding he would continue to work with stakeholders on further legislation.Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
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