In Jefferson City, our focus in these challenging economic times has been keeping the state budget in balance by reducing unnecessary costs.
One way we are working to accomplish this is through the Senate’s innovative “Rebooting Government” initiative. We know it is simply not enough to make cuts. We need to change the fundamental structure of government with increased effectiveness and efficiency in mind.
Some of the Rebooting Government ideas advanced in the legislative process this year (we reviewed hundreds of citizen-submitted proposals) amounted to millions of dollars in savings. Although other solutions will take some time to work out, such as much-needed prison reform, we did manage to pass a handful of cost-saving measures this year.
Bills to cut Medicaid costs ($20 million), eliminate certain printing expenses ($1.5 million) and combine the State Highway Patrol and Water Patrol ($1 million) were signed into law. State employee pension reform was also part of the Rebooting Government plan to save Missouri taxpayers more than $600 million over 10 years. Other measures, such as combining the departments of Higher Education and Elementary and Secondary Education, will likely be brought up again. Two things, however, are certain: The current level at which our government operates is simply too expensive for Missouri taxpayers and our state’s budget woes will continue into fiscal year 2012.
Budget officials were originally predicting a $600 million shortfall for next fiscal year, but with the recent approval of $400 million in federal funds allocated to Missouri for Medicaid and education, they are now expecting somewhere between a $200 million to $500 million shortfall. (The official forecast is released in December.) Still, two months into the current fiscal year, revenue is a bit weaker than expected. Time will tell if it can pick back up, but a shortfall is probably inevitable.
Rebooting Government is a great first step, but it is highly likely further cuts and reforms will be needed. Raising taxes is simply not an option, and depending on misguided federal handouts is a disastrous fiscal policy. Here in the Show-Me State, we pride ourselves on our fiscally conservative nature, which so far, has put us in a far better position than some of our neighbors. We must continue to exercise restraint with spending and push the envelope to develop a more efficient, less costly government.