Amid Shrinking State Revenues, House Seeks Transparency

Missouri’s general revenue fund ended fiscal year (FY) 2014 down over $70 million from the previous year. With funding levels low, it is critical that the legislature diligently oversee how taxpayer resources are spent. Last week the Budget and Appropriations - Health, Mental Health, and Social Services committees met for a joint transparency hearing to hold departments accountable for efficiently using their budgets to benefit the people of our state.

The budget shortfall led Governor Nixon to withhold or veto over $1.1 billion from the fiscal year 2015 budget, but the House of Representatives discovered that funds from the Department of Social Services’ (DSS) Children’s Division were used to pay dues to the National Governor’s Association. The needs of vulnerable children in Missouri are great, and money set aside for the Children’s Division should not be diverted for organizational memberships.

House appropriations staff compiled a 27-page spreadsheet of the organizational dues in Missouri’s budget. Departments need to reveal these expenditures and explain why they are needed, especially during budget shortfalls. The Governor’s Budget Director, Linda Luebbering, agreed at the hearing that when departments submit next year’s budget requests, the larger dues will be presented as separate line items to provide transparency.

The committees also questioned Luebbering about the discrepancy between the Missouri Lottery’s profits and the money it allocates to schools. During FY 2014 the Missouri Lottery had a record year, bringing in nearly $1.16 billion. The amount going to education, however, declined to only $267 million. The Governor’s office has ordered a review of the lottery to determine what changes need to be made to ensure a steady funding stream for Missouri’s schools. The Budget committee will discuss the results of the study at a future hearing.

During the public testimony period, citizens and organizations from across the state had an opportunity to comment on state spending. Several individuals voiced concerns about the Governor and Department of Mental Health’s (DMH) decision to close Cottonwood Treatment Center, which serves young people with severe emotional disturbances, as part of the budget restrictions. DMH officials testified that closing Cottonwood was not an easy decision, but that it was necessary because the center does not run at capacity and operates at a steep financial loss. The legislature will continue to monitor this situation because it is essential that children in Southeast Missouri receive appropriate care after Cottonwood closes.

The Spending Oversight Council, a group of citizens dedicated to reviewing government spending, cited instances of improper expenditures by state and federal programs and suggested linking future funding to measureable outcomes. The Appropriations – Health, Mental Health, and Social Services committee that I chair consistently requests performance data to determine whether or not programs are producing a return on the state’s investment.

The Budget and Appropriations – Health, Mental Health, and Social Services committees will have their next oversight and transparency hearings in late August. By holding departments accountable and requiring government programs to prove their value to the state, the House will have the information needed to responsibly allocate Missouri’s revenue during next year’s budget cycle.