Politics
Missouri budget earmark-loaded as governor’s deadline looms

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For years, state Sen. Mike Moon has railed against the unfairness of businesses being told they owe money when the Missouri Department of Revenue revises the list of things covered by the state sales tax.That happened after 2008, when the Missouri Supreme Court ruled that fitness clubs were places of “amusement, entertainment or recreation” and must charge tax on memberships and class fees. Audits subsequently resulted in tax bills for thousands of dollars that businesses struggled to pay.Moon has filed bills seeking to force a refund and this year, for the second time, has secured an earmarked appropriation of $38,000 to refund the money paid by a Kansas City fitness club owner. Gov. Mike Parson vetoed a $150,000 appropriation for the same purpose in 2021, arguing that the proposal violates the state Constitution’s ban on “refunding money legally paid into the treasury.”Moon, in an interview with The Independent, said he won’t be surprised if it happens again.“I don’t know that the governor will leave it in there,” Moon said. “He has been known to cut it out of that before.”Moon’s $38,000 proposal is one of more than 400 earmarks, spending more than $2.1 billion, sprinkled throughout the $51.7 billion state budget passed by lawmakers this year. The total includes 284 new earmarked items, worth $1.7 billion, and 124 that are to receive continuing appropriations.Last year, The Independent identified 275 earmarked items, totaling about $1.1 billion. The number began increasing during the 2021 session, as the size of the growing state budget surplus became apparent.Parson must take action on the 16 appropriation bills before the new fiscal year begins on Monday. Whether the earmarked items are approved is not a question of money – the state has almost $6.4 billion in surplus funds and revenues through Tuesday have already exceeded estimates for the current fiscal year with three more days for collections.But despite that surplus, Parson has targeted earmarked funds in his veto messages in each of the last three years. Last year, he cut $550 million from the budget by vetoing or reducing 201 budget items.The previous year, the veto pen fell on $650 million in spending lines.In an analysis of the budget, The Independent defined an earmark as an item not originally requested by Parson that is directed to a specific organization or region.The largest example in this year’s budget is $727.5 million from general revenue and borrowed funds for improvements along Interstate 44 in southwest Missouri. The earmark was inserted by House Budget Committee Chairman Cody Smith, a Republican who represents Jasper County and is a candidate for state treasurer.Other big road items include $150 million to widen U.S. Highway 67 through Butler County and $48 million for work on U.S. 65 between Buffalo and Warsaw.Some of the items, like Moon’s refund money, are repeats of items Parson vetoed last year. One is $3.4 million for improvements to LeCompte Road on the east side of Springfield.“This is a local responsibility with minimal statewide impact,” Parson wrote about the project in last year’s veto message, a line that found a place in many vetoes.There’s money to build hospitals in Kirksville and in Dunklin County, to fund eight local water and sewer projects, to convert a building at the University of Missouri-Columbia to the state Wine and Grape Institute and to pay for a parking lot at the stadium where the KC Current play soccer.The Urban League of St. Louis is in line for a $1 million grant through the Department of Higher Education and the Boys and Girls Club of Poplar Bluff is in with a $2 million grant from federal COVID relief funds.
Maria Altman
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St. Louis Public RadioThe Urban League of St. Louis is in line for a $1 million grant through the Department of Higher Education to support its programs and facilities, like the newly-established Ferguson center.
Obscure originsSmith wanted to make sure everyone knew who was inserting the money for I-44 by holding a news conference to announce it. And Moon doesn’t hesitate to say that he sought the money for the tax refunds.But finding the sponsors of the remaining 406 earmarks is more difficult. Unlike the earmark process in Congress, there are no legislative rules requiring members to make their appropriations requests public.At their end-of-the-year news conferences, Republican and Democratic leaders in the Missouri House took opposite views on whether lawmakers should have to put their name on earmark requests.House Speaker Dean Plocher, a candidate for secretary of state, said the legislature as a whole has responsibility for spending. There are no new earmarks that are targeted to Plocher’s St. Louis County district.“We’re not up here for personal credit,” Plocher said. “I don’t think it’s about bringing money back to your district.”Every legislator who voted for the budget bills is responsible for the earmarks, Plocher said.House Minority Leader Crystal Quade of Springfield, a candidate for governor, said lawmakers “absolutely” should have to identify the earmarks they seek.The Independent identified eight earmarks targeted to her district, totaling $45.8 million, for items ranging from $250,000 for the Springfield Sports Commission to $15 million for an alliance of health care providers to expand medical training.“I’m proud when I’m able to bring money home to my district,” Quade said. “I wouldn’t ask for something I was ashamed of that I didn’t think Missourians would be happy with that money going towards.”The transparency of requiring earmarks to have sponsors, Quade said, would help Missourians understand the legislature.This year’s budget process, derailed by filibusters and finished with hours to spare under the constitutional deadline, was particularly obscure, with Smith and Senate Appropriations Committee Chairman Lincoln Hough cutting the final deal on every item behind closed doors.“We should be responsible and be held accountable to the people of Missouri, and they should know how we’re making those decisions,” Quade said.For more than 250 of the new earmarks, The Independent was able to identify the House or Senate district where the appropriation is to be spent, either by decoding the legislative language describing the item or assigning it based on the home address of the organization to receive the funds.Moon said he often has trouble figuring out where a spending item is going.“When a particular area, a county, is mentioned in a legislative bill, you talk about counties with a certain population, but not not less than or not more than a certain amount, and of course, that’s a way around the special law prohibition,” he said.In Moon’s view, many of the appropriations violate the constitution’s long-standing provision against grants of state money or credit to private entities. He filed constitutional objections, printed in the Senate Journal, specifically questioning 64 earmarked items totaling $131.9 million.The largest item on Moon’s list is $17.5 million to support the Kansas City organization preparing for the 2026 World Cup matches at Arrowhead Stadium. In Moon’s letters, he encouraged Parson to veto the appropriations.The constitutional limit only applies to state funds and includes an exception for using federal funds for designated public purposes. Many of the items on Moon’s list for the Department of Social Services use money the state receives for the Temporary Assistance to Needy Families program, or TANF.Since the enactment of a federal welfare overhaul in 1996, Missouri has received about $200 million annually as a block grant intended to equal the amount used for cash benefits before the law.Because Missouri only paid out $16.5 million in direct benefits in fiscal 2023, the remainder is available for anti-poverty program grants. The earmarks in this year’s budget from TANF funds total $29.4 million.Spending questionsSome earmarks began taking flak before the final budget votes.Democrats criticized $12.5 million to purchase land for a state park in McDonald County in the district of House Budget Committee Vice Chairman Dirk Deaton.And Northeast Regional Medical Center in Kirksville attacked an earmarked $15 million for Hannibal Regional Healthcare System to construct a radiation oncology center in Kirksville. Northeast Regional’s attorney, Chuck Hatfield, said in a letter sent in April to Hough that the appropriation is improper because it allows Hannibal Regional to open a competing hospital where no need has been established.Missouri requires medical providers to obtain a Certificate of Need for major capital investments. Hannibal Regional hasn’t even begun the process of obtaining the certificate, Hatfield noted.“It would be inappropriate for the legislature to provide funding for a project that has not provided or demonstrated need in accordance with Missouri law,” Hatfield wrote.If the Kirksville facility is not licensed as an inpatient hospital or long-term care facility, it would not need a certificate of need, Lisa Cox, spokeswoman for the Department of Health and Senior Services, said in an email.It could need a certificate for capital purchases of $1 million or more, she said.There are $57 million in earmarked appropriations for hospital construction or capital equipment in the budget plan on Parson’s desk. The largest is $25 million for an acute care inpatient behavioral health center at KC Children’s Mercy and the smallest is $425,000 for a computed tomography scanner at Golden Valley Memorial Hospital in Clinton.The increased number of earmarks while the state enjoys a large surplus is likely to continue. Requiring legislative sponsors to be public for each item might cut back on the special spending, Moon said.“It would make it a lot more transparent,” Moon said. “Most people, especially those who are opposed to earmarks, would like it. Those who want earmarks may not be so inclined to like it, though.”
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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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