Politics
St. Louis-area has over 6,000 child abuse or neglect cases open

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When Anna Reilly saw a news article about how Missouri’s Children’s Division was critically understaffed, she felt compelled to be part of the solution.Last fall, the Washington University graduate was looking for a new career path. And, at a job fair, Reilly was hired on the spot as a Children’s Division investigator responsible for looking into cases of suspected child abuse or neglect.“I read the article and said: ‘This is something I can do. This is something that I can help with,’” Reilly said.It didn’t take long for Reilly to discover that the office of the Children’s Division that oversees St. Louis and St. Louis County was critically short of investigators. That meant she quickly had many more cases than she should handle.About four months into her tenure, Reilly had a weekend shift when, instead of being able to catch up on her existing workload, she was assigned more cases.She came to the conclusion that her job was unsustainable. After working on her heartbreaking caseload virtually around-the-clock one weekend, she reached her limit.“I went into Monday, and I worked again,” Reilly said. “And I couldn’t anymore. I couldn’t go on. Because you go in the next day and you have two more cases. But I also had two more cases from the weekend that I was still working on. I could no longer see a path of climbing out of it.”
“I couldn’t go on … I could no longer see a path of climbing out of it.”
Anna Reilly, former Missouri Children’s Division investigator
As of early August, there were only 16 investigators doing the work Reilly used to do – looking into cases of potential child abuse and neglect in St. Louis and St. Louis County. According to Department of Social Services and Children’s Division officials, the office should have roughly 60 investigators.Because of this staffing shortage, there’s a backlog of more than 6,000 cases with accusations of child abuse or neglect that have remained open for more than 45 days. That’s far more than other regions in Missouri — including offices that oversee Jackson County, Springfield and much of rural Missouri.Not all of the backlogged cases will be substantiated as child abuse or neglect. Still, Missouri policymakers who follow child welfare issues said the inability to fully investigate thousands of cases puts children at risk.“The stakes are that every case that has been routed is a child, and a child that is in a potentially unsafe situation,” said Jessica Seitz, the executive director of Missouri KidsFirst, which advocates for statewide policies to stop child abuse. “And the Children’s Division has been mandated to keep our kids safe in Missouri. And the stakes are they’re not fulfilling this. They’re not fulfilling this obligation. These aren’t just cases. These are kids.”Leaders at the Department of Social Services and the Children’s Division have been clear: What’s happening in St. Louis and St. Louis County is a major problem that needs decisive action. Officials in both agencies are trying to raise salaries for investigators and provide more outside support so that the backlog can be reduced.“In many cases, investigators are going to prioritize the cases that they believe are the highest risk of harm. But that doesn’t mean that there is no risk in those overdue cases,” said Department of Social Services Director Robert Knodell. “Which is why we’re determined to surmount the backlog and make sure that all of our investigations are completed in a timely fashion.”
“Children are not safe. Somebody reported that they might not be safe. And that child? I would not consider them safe until their case is closed.”
Anna Reilly, former Missouri Children’s Division investigator
Both lawmakers and officials in the state’s executive branch stress that clearing the backlog won’t be easy or quick. And getting the investigative team fully staffed may be difficult, especially as other jobs available around the St. Louis region may pay better and provide more flexible schedules.“It is going to take an effort from a lot of people focusing on it,” said state Sen. Mary Elizabeth Coleman, R-Arnold. “I think it’s easy to feel helpless when you find out about things like this. And if you feel helpless and then you kind of turn away and don’t keep working on it — or don’t try to do something to help — I don’t think that’s the right solution.”Added Reilly: “Children are not safe. Somebody reported that they might not be safe. And that child? I would not consider them safe until their case is closed.”
Brian Munoz
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St. Louis Public RadioAbove: Darrell Missey, the director of the State of Missouri Children’s Division, is interviewed in a St. Louis Public Radio studio. Missey said some of allegations made to the state’s hotline include physical and sexual abuse and child neglect which he adds is “usually fueled by addiction, mental illness and poverty.” (Brian Munoz / St. Louis Public Radio)Top: Missouri has more than 10,000 allegation of child abuse and neglect, with St. Louis and St. Louis County counting for more than 6,000 of them and only 16 investigators tackling the caseload as of early August. (Photo by Dion MBD / Special to The NPR Midwest Newsroom)
From call to visitIn Missouri, anyone who believes that a child is being abused or neglected is advised to call the state’s hotline.When the hotline operators screening the call believe that an accusation is serious enough to warrant more attention, they send it to investigators at regional offices across the state. If a child is in imminent danger, Children’s Division workers will try to see that child within a few hours and make sure law enforcement is contacted.“You have allegations of physical and sexual abuse, which are our most serious things. And you have neglect, which are most of the cases,” said Children’s Division Director Darrell Missey. “And [the neglect cases] are usually fueled by addiction, mental illness and poverty.”Investigating a claim of child abuse or neglect requires a number of steps: calling the person who made the accusation, traveling to the home where the suspected abuse or neglect could be occurring, talking with the child’s parents and speaking with the child. Investigators also need to speak with other children in the home or people who may have a relationship with the family in question.
All this can take days, even weeks.State Rep. Keri Ingle, D-Lee’s Summit, used to work as an investigator in the state Children’s Division. She said that it wasn’t unusual for her to investigate a specific claim of abuse or neglect — and then find something completely different.“Ideally, best practice is that an investigator has no more than two cases a day. One would be ideal,” said Ingle, who also worked in other positions in the Children’s Division before being elected to the Missouri House. “Because one case can spiral into all different kinds of things. I had one circumstance where I would get a case of educational neglect. And I would walk in, and there is really bad hoarding going on in the home. It’s absolutely unsanitary. Maybe there are other children there that aren’t even on the original report. Maybe there’s sexual abuse going on. Maybe it’s an open meth lab. These things happen. And so, the majority of cases that I actually referred to court came in as neglect.”While some cases can end up with an investigator recommending a child be taken out of a home, other times an accusation of abuse or neglect may not be substantiated. Certain circumstances may result in an investigator steering a family toward critical social service programs.For Reilly, having a large caseload made it difficult to do her job effectively.She said sometimes she had to drive from one end of the city of St. Louis to a distant part of St. Louis County in the same day — which meant she was spending time traveling instead of being with a family. The hours she worked didn’t always align with the schedules of families being investigated, she said.“Because we have these allegations, but there’s not necessarily the proof behind them, we go to the homes without calling ahead,” Reilly said. “Because part of the job is to talk about the allegation, but part of the job is to check the safety of the home. We do a no-call knock on the door. We also have to be invited in. There’s no mandatory process for us coming into a home.”If no one is home, an investigator starts the process again another day.
Brian Munoz
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St. Louis Public RadioMissouri Gov. Mike Parson in May 2023 during a press conference in St. Louis. “We want to make sure they look at those case files, understand the facts of that case, and then understand when to take action,” Parson said, acknowledging the open case problem in the St. Louis branch of the state’s Children’s Division. “You don’t want to put people in a position where they just candle the job or the stress of it — and not be able to really help somebody.” (Brian Munoz / St. Louis Public Radio)
Cases pile upThe backlog of child abuse and neglect claims is not a new issue. Staff shortages have been an endemic problem in Missouri state government, especially within the Children’s Division.
But both lawmakers and executive branch officials acknowledge that the open case problem in the St. Louis branch of the Children’s Division is an outlier compared to the rest of the state.“I’m going from an old law enforcement [background] where when you get a case file stacked on your desk, at some point you’re trying to get through case files,” said Missouri Gov. Mike Parson, alluding to his prior experience as a sheriff. “And that’s the wrong area where we want to have anybody in that position. We want to make sure they look at those case files, understand the facts of that case, and then understand when to take action.”“You don’t want to put people in a position where they just can’t handle the job or the stress of it — and not be able to really help somebody,” he added.As of late August, the St. Louis region had 6,124 cases that were not closed after 45 days. That is more than half of the entire state’s backlog of 10,167 overdue cases.
Ingle said there are a number of reasons a case cannot be closed, including waiting on documents like medical records. It’s also possible that investigators have done everything they need to do in one case but haven’t entered the documentation into the state computer system because they’re busy with other cases.Still, Ingle said the backlog presents a host of problems for the state and the state employees who are working as investigators, as well as for those most vulnerable: children.“When a restaurant closes for a day, no one is in imminent danger,” Ingle said. “But the Children’s Division can’t shut down for a day because they don’t have employees. These folks work 365 days a year. They have night workers. They have weekend workers. People work on holidays. I worked on Christmas and Thanksgiving, and they do too. It never stops.”Currently, the average caseload for an investigator in St. Louis is around 150. That’s far beyond the 12 to 15 cases that an investigator should have.State Rep. Raychel Proudie, D-Ferguson, is a licensed educator who serves on a joint legislative committee on child abuse and neglect. The lawmaker says that Children’s Division employees have continually told legislators that turnover was causing caseloads to become unsustainable.“It’s impossible for them to do,” Proudie said. “You can’t rush them just to satiate lawmakers and folks calling for this to be just clear.”Of the 6,124 overdue cases, investigators have recorded that they’ve seen 3,205 reported victims of abuse or neglect. That doesn’t mean that the investigators haven’t seen the remaining kids in the 2,919 cases, but rather they haven’t been able to enter information into the state computer system due to the volume of work. There are other instances in which a child or family cannot be found or have been found out of state.
Tristen Rouse
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St. Louis Public RadioAdrienne Williams, a senior social services specialist with the Department of Social Services, waits for interested applicants to fill out forms during a hiring event on Aug. 29 at the Family Support Division building in Overland. (Tristen Rouse / St. Louis Public Radio)
Compounded problemsIt wasn’t just Reilly who decided that the workload was unsustainable.This year, Brittany White worked at the Children’s Division for three months before leaving for another job. She said it was difficult to juggle a demanding job with a relatively low salary of around $43,000 a year, especially when she had children.If there were more investigators in the St. Louis office to deal with cases, White said, the job would have been more manageable.“I would have had a work-life balance,” White said. “I wouldn’t have been staying in the office longer than I needed to to get the job done. It would have helped me tremendously.”One response to the backlog has included having other Children’s Division employees take on some of the overdue cases. Missey said while Children’s Division employees from around the state have volunteered to help with the St. Louis region’s backlog, it’s not a permanent solution.“What we have to concentrate on right now is getting enough people,” Missey said. “It is job one for us to let people know about this important work, to recruit people, to retain people and to do everything we can to make this situation better.”Lazarus Jameson used to license homes for foster children at the St. Louis office of the Children’s Division. They said their supervisors took on some of the abuse and neglect backlog. But that caused them to fall behind on their primary jobs — which, in turn, delayed other key aspects of the Children’s Division’s work.“Having problems in one area compounds everything else,” Jameson said. “That we’re having all of these gaps everywhere is creating an enormous amount of unsafeness.”Ultimately, Coleman said investigators are often placed in untenable positions.“If you reach a critical threshold where there are so few workers to do such a high volume of work, it is in many ways a moral hazard,” Coleman said. “You know that if you stop to eat dinner with your family, you’re not investigating a kid who is being hurt. And it just becomes something where the option is to not do it all or do it every hour of the day.”
Tristen Rouse
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St. Louis Public RadioRecruitments materials and blank name badges sit on a table during a State of Missouri Department of Social Services hiring event on Aug. 29 at the Family Support Division building in Overland. (Tristen Rouse / St. Louis Public Radio)
No quick fixWhile Missey and other officials see the backlog of cases in St. Louis as an unquestionable problem, they are making progress. Since June, the backlog has been cut from 6,820 overdue cases to 6,124 cases. And lawmakers provided close to $30 million in additional funds during this year’s budget to deal with the Children’s Division’s staffing issues.But officials both within and outside of the Children’s Division pointed to a number of reasons why hiring and retaining investigators has been difficult.Knodell said the labor market in St. Louis is much more competitive than in other parts of the state. Not only is Missouri competing with schools and private contractors for potential employees, but also other states.While the starting salary for an investigator in Missouri is around $43,000 a year, Knodell said Illinois can offer people close to $57,000 for similar work.“We’ve obviously lost staff due to the pay. We’ve obviously lost staff due to the workload. Both situations. And even when we were able to replace that staff person, replacing that experience is very difficult,” Knodell said.Knodell said Missouri does not allow his agency to adjust salaries based on cost of living. That means an investigator who lives in, for example, West Plains makes the same amount as someone who resides in Oakville or the city of St. Louis.“In a perfect world, I would like to pay these individuals a lot more than we do right now,” Knodell said. “But we’re going to continue to do what we can to take those steps. People are not taking these jobs to become wealthy. There is a heart for children. There is a passion for helping to keep kids safe.”
Clara Bates
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Missouri IndependentTodd Richardson, Director of MO HealthNet, Kim Evans, Director of Family Support Division, and Robert Knodell, acting director of Department of Social Services. (Clara Bates / Missouri Independent)
Seitz said another factor that has hurt retention and recruitment of investigators was the 2021 decision to have state employees return to their offices for in-person work.She said that directive “really turned people off” from working for the Children’s Division.“This is a job that requires a flexible schedule. And so mandating that state employees come back to the office led to a lot of people quitting. And they don’t make enough money anyway. I had heard incredible frustration,” Seitz said.Parson said that while he would be open to discussing an arrangement where investigators could do some of their work from home, he added there are benefits to being in a central office.“If there’s some hybrid version of that, we’re fairly open to that to see what really does work and what’s successful,” Parson said. “But we also know in the private sector you can’t just let people go home and stay home. Right now, our main priority is to get more people involved — to hire people and address the issue. And the issue is trying to take care of these kids.”Beyond pushing for higher salaries, Knodell said his agency initiated more private contracting in the St. Louis office to handle efforts to place children in foster homes — which he said could free up people who could focus on reducing the abuse and neglect backlog. The agency is also bringing in contract managers to make sure cases are being handled in an efficient manner.The Department of Social Services also is deploying more preventative services, Knodell said, so that a family can get state assistance before reaching its breaking point and a child suffers.“We see mental illness, we see substance abuse. And being able to connect that family with services to address the root cause of the situation, rather than waiting for that situation to deteriorate where something is actionable, then we’re able to reduce the number of kids in care,” Knodell said. “We’re able to have stronger healthier families in the state.”
Brian Munoz
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St. Louis Public RadioMissouri Rep. Raychel Proudie, D-Ferguson, speaks on an amendment on a bill regarding child custody in May 2023 during the waning hours of the legislative session in Jefferson City. “We need the public to be taken aback and outraged by this information because I think it will compel the legislature to do what we need to do to really get to the bottom of this issue,” Proudie said of the situation in the Children’s Division. “We need to pay these folks. We need to pay them. That’s the bottom line.” (Brian Munoz / St. Louis Public Radio)
More help on the horizon?Some lawmakers say they want to alleviate hiring problems at the Children’s Division in the next legislative session.“We need the public to be taken aback and outraged by this information, because I think it will compel the legislature to do what we need to do to really get to the bottom of this issue,” Proudie said. “We need to pay these folks. We need to pay them. That’s the bottom line.”Several lawmakers said it would be worthwhile to allow for the Department of Social Services to tie salaries to cost-of-living geography. And Ingle agreed with Proudie that making salaries more attractive to potential hires should be a top priority for her legislative colleagues.“I think this is a business decision when it comes down to it,” Ingle said. “When you look at a really, really high-stress job like this and one where children’s lives are literally in your hands, you would hope that we would want to put our money where our mouth is. If we value the children of Missouri, we have to do more in order to ensure that the folks ensuring their safety are able to come into work every day.”State law bars private contractors from serving as investigators. Still, Coleman said it may be a good idea to allow for contractors to assist investigators, including assessing whether a child is safe in a particular home.“And there are states that are doing that,” she said. “I think that could be a really useful tool to try to drop the number of [open] investigations.”Lawmakers from both parties have praised Knodell and Missey for acknowledging the issues with the St. Louis and St. Louis County child abuse and neglect backlog — and proactively working to reduce the number of open cases. Knodell noted that there are investigators who are currently being trained to add to the 16 currently working in St. Louis.Knodell, who recently became permanent director of the Department of Social Services, said he’s making it a priority to get more cases closed.“What I’m trying to do is foster an environment where simply not pointing fingers back and forth at one another because we haven’t been as successful as we should be,” Knodell said. “But we’re all working together. These children are ours. And this is our state.”
Brian Munoz
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St. Louis Public RadioMissouri Rep. Keri Ingle, D-Lee’s Summit, listens to House Minority Leader Rep. Crystal Quade, D-Springfield, speak in January 2023 during the first day of the legislative session in Jefferson City. (Brian Munoz / St. Louis Public Radio)
Still, without more investigators, Ingle doesn’t expect the backlog situation to significantly improve.She said that when she was working as an investigator, people would stop getting new cases when they had yet to close previous ones. That’s not possible now, she said, when there are so few investigators. Accusations of abuse and neglect don’t stop simply because workers are overloaded.“This is a crisis,” Ingle said.August typically brings in more reports of abuse or neglect, she said, primarily because children go back to school during that month.“And they’re going to start telling stories about what happened over the summer. And people are laying eyes on them in the community that they don’t get to during the summer,” Ingle said.“The vacancies in the Children’s Division across the state is something that still keeps me up at night,” she added.Proudie, a member of the House Budget Committee, said raising the pay of investigators is urgent and vital. Not dealing with the issue now, she said, could mean that children grow up having difficulties as adults.“If we don’t get a handle on this and take this as seriously as we purport ourselves to do, we’re going to cultivate kids that could become adults with severe mental health struggles that we are then going to have to deal with from the Children’s Division to the Department of Corrections,” she said. “And children are going to die.”Have you had experience with the Missouri Children’s Division and have ideas on how to make the child abuse and neglect investigations more effective? If you wish to speak with us for future stories, send an e-mail to news@stlpr.org.This story was produced in partnership with the Midwest Newsroom, an investigative journalism collaboration including St. Louis Public Radio, KCUR 89.3, IPR, Nebraska Public Media News, and NPR.
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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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