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SCHOOL RETIREMENT LEGISLATION PASSES SENATE COMMITTEE
The Senate Pensions, Veterans’ Affairs and General Laws
Committee voted Senate Bill 244 (Rob Mayer) “do pass”
on Feb. 7. The bill will enact a five-year extension for two
key provisions of PSRS law: the “25-and-Out” option
and the enhanced 2.55 percent benefit factor for retirees
with 31 years of service or more. Both provisions will expire
on June 30, 2008, if not re-enacted prior to that date.
In an
unusual move, the bill was voted out as a Consent Bill, meaning
the bill will be placed on a special calendar and cannot be
amended during floor debate. This is highly unusual because
the bill has an estimated fiscal impact of about $1 million
per year on school districts based on the contributions required
to fund the continuing actuarial cost of the provisions. Bills
with fiscal impact over $100,000 are not generally given consent
status, and there is some likelihood that the bill will be
stricken from the Consent calendar.
Missouri
NEA strongly supports this legislation. A logical system for
teacher retirement must take several factors into account.
Teachers and other education employees, who have 25 or more
years in the profession, should continue to have the option
of retiring with a fair return for their years of service.
At the same time, educators who choose to give more years
of service, from 30 to 35 years, should be rewarded with higher
levels of retirement benefits.
PENSION
TAX CUT BILLS
Pension tax cut bills continue to be very popular this week.
Large tax cuts appear to be a replacement for last year’s
emphasis on capping state spending by a constitutional limitation,
such as Colorado’s Taxpayer Bill of Rights. By enacting
large tax cuts, proponents can accomplish the same ultimate
objective—curtailing public sector investment over the
long term—by eliminating state revenues through permanent
tax cuts, rather than merely constraining the spending power
of the legislature.
Missouri
NEA believes taxes should be fair, adequate and sustainable.
The Social Security tax cut bills violate each of these three
principles. Accordingly, Missouri NEA opposes these bills.
Since Social Security income is already exempted from taxation
for many low-income people under federal rules, low-income
seniors, who rely heavily on Social Security payments, will
not pay lower taxes under these bills. Most of the total reduction
in tax payments will go to wealthy seniors. Overall, this
is a regressive change and undermines tax fairness. Worse,
exempting all Social Security income will reduce state revenues
by more than $100 million per year initially, increasing rapidly
over time. Exempting other pension income entirely raises
the cost to nearly $300 million per year.
Missouri
NEA supports equalizing the tax treatment of school pensions
and Social Security income but in a way that maintains overall
tax fairness and doesn’t diminish revenue adequacy now
or over the long term. Giving school retirement income the
same tax treatment that Social Security income now receives
would provide that equality. This change should be done as
part of an overall tax reform package that improves the adequacy
and sustainability of state revenues by making state income
tax more progressive, i.e., more nearly based on the taxpayer’s
ability to pay.
The Senate
Ways and Means Committee heard several bills, including Senate
Bill 230 (Jason Crowell), on Feb. 5. S.B. 230 is the same
as House Bill 444 (Rod Jetton) and would exempt all Social
Security income from state income tax. Missouri NEA spoke
in opposition to S.B. 230, as the bill fails to support any
of the Association’s standards for taxation: fairness,
adequacy and sustainability.
The House
Special Committee on Tax Reform heard more pension tax cut
bills on Feb. 6: H.B. 172 (Nathan Cooper) exempts all Social
Security benefits from state income tax; H.B. 239 (Mark Bruns)
exempts Social Security benefits, annuities and other pension
allowances from state income tax. The Association opposes
both bills due to their regressive nature and the significant
harm the bills will do to adequacy of state revenues.
The House
committee was scheduled to hear H.B. 218 (Bryan Stevenson)
to reduce corporate income tax rates. However, no testimony
was taken on the bill. Missouri NEA opposes this reduction
in corporate responsibility. Missouri NEA supports revisions
to ensure that all corporations in Missouri pay an appropriate
share of Missouri taxes using a formula of general application,
such as is used in most other states, rather than allowing
corporations to pick the factor that allows the lowest tax.
Also,
the committee heard H.B. 133 (Danie Moore) to allow a $6,000
pension deduction from state income tax for taxpayers when
they reach the age of 65 regardless of income. This measure
is far more limited in impact, but still has a regressive
effect due to the removal of the income limit.
After
the hearing, the committee voted out a House Committee Substitute
for H.B. 444, 217, 225, 239, 243, 297, 402 & 172. The
HCS exempts all Social Security pensions from income tax,
along with other public employee pensions not eligible for
Social Security, such as PSRS. The HCS does not change the
taxation of federal or state pensions. The fiscal note estimates
the HCS will reduce state revenues by more than $160 million
per year beginning in the first year, and the amount will
increase rapidly as Baby Boomers reach retirement age. However
as drafted, the HCS runs afoul of the limitations established
by the relevant case law: Davis v. Michigan Dept. of Treasury.
That federal case establishes that states must treat all public
pensions in the same way. Other bills will be voted out later
to exempt military and other state and federal pensions and,
ultimately, the provisions are likely to coalesce into one
omnibus bill eliminating all state income tax on pension income.
Such a bill would reduce state revenues by at least $300 million
per year. Missouri NEA continues to oppose HCS/H.B. 444 due
to the regressive nature of the tax change and the significant
harm the bill will do to adequacy of state revenues.
Action
needed:
Please call, write or e-mail to urge your state representative
to oppose HCS/H.B. 444—the tax and service cut bill.
The following link will connect you to the MNEA Legislative
Action Center Action Alert on H.B. 444. The Action Alert
contains a brief summary and an editable message box to
help you send an e-mail to your state representative on
the issue.
http://capwiz.com/nea/mo/issues/alert/?alertid=9349036&type=ST&show_alert=1 |
OMNIBUS
HIGHER EDUCATION BILL
The Senate Education Committee voted out a SCS version of
Senate Bill 389 (Gary Nodler) on Feb. 7. S.B. 389 is an omnibus
bill relating to higher education. Among many provisions,
the bill authorizes the use of proceeds from the sale of Missouri
Higher Education Loan Authority assets to fund capital projects
for public higher education institutions. An SCS was offered
which excluded six specific projects identified by pro-life
advocates as likely to conduct activities related to stem
cell research. Amendments were offered and adopted to add
each of those projects back in, with opposition from Senators
Loudon, Mayer and Rupp. A vote was taken on the SCS and was
defeated by a vote of 3-7, when Senators Coleman, Days, Graham
and Wilson joined with Loudon, Mayer and Rupp in voting “no.”
Then a new SCS was proposed that excludes funding for the
six identified projects, and the SCS was adopted by a party-line
vote of 6-4.
Missouri
NEA continues to oppose the tuition cap provision affecting
public higher education institutions. While controlling tuition
growth is a desirable goal, the Association believes it must
not come at the expense of maintaining quality programs and
services. Institutions need adequate funding so instructors
and staff have the tools and resources to meet student needs.
The legislature must also be held accountable for adequate
funding to state institutions before tuition caps can be imposed
without sacrificing quality instruction. The Association urges
that the tuition cap be stricken from the bill or revised
to reflect a commitment on the part of the legislature to
only impose tuition caps if the legislature provides adequate
funding to public higher education institutions.
SENATE
EDUCATION COMMITTEE
The Senate Education Committee heard several bills on Feb.
7:
Senate Bill 320 (Dan Clemens) creates the "Large Animal
Veterinary Student Loan Program" and modifies the Large
Animal Veterinary Medicine Loan Repayment Program.
.
S.B. 133 (Scott Rupp) alters provisions regarding expedited
due process hearings.
S.B. 140
(Scott Rupp) allows school boards to identify a designee to
bind the school district in a settlement agreement reached
during the resolution session of a special education due process
hearing.
S.B. 160
(Scott Rupp) alters provisions regarding higher education
scholarships. The bill authorizes A+ schools funding for students
attending private technical institutions such as Ranken Tech.
Also, the bill provides community college associate degree
transfer scholarships.
S.B. 135
(Gary Nodler) was scheduled for hearing but was not heard
due to a lack of time following the lengthy executive session
on S.B. 389. S.B. 135 would allow the Missouri Higher Education
Loan Authority to provide primary school loans.
STUDENT
ACHIEVEMENT COMMITTEE
The House Special Committee on Student Achievement heard the
following bills on Feb. 7:
House
Bill 417 (Jane Cunningham) changes the laws regarding teacher
certification in mathematics, science, technology, engineering
and certain other areas, authorizes differential and “merit”
pay and establishes guidelines regarding students transferring
into a district. Missouri NEA continues to oppose eliminating
Missouri’s salary schedule law, as the law helps support
fairness in teacher compensation in the absence of bargaining
rights for teachers and other employees. The Association also
opposes the additional certification provisions that would
create another certification based on content knowledge and
technical expertise without ensuring that teachers so certified
are also properly trained in essential teaching competencies.
The bill also fails to support dignity in the workplace, as
the teachers certified under the new alternative process would
not have access to Missouri’s teacher tenure law.
H.B. 481 (Mike Sutherland) eliminates the Missouri Advisory
Council for the Certification of Educators and establishes
the Commissioner's Advisory Council on Teacher Quality within
the Department of Elementary and Secondary Education. Missouri
NEA continues to oppose the elimination of MACCE, as this
change would create a council with even less autonomy, diminish
the participation of higher education institutions and move
the state even farther away from the Association’s goal
regarding certification standards: the establishment of an
independent Professional Standards Board composed of a majority
of actual teachers which would be empowered to set high state
standards for teaching and teacher certification.
H.B. 620
(Scott Muschany) requires the State Board of Education to
create another alternative teacher certification based on
certification by the American Board for Certification of Teacher
Excellence and establish mentoring standards for beginning
teachers and principals. Missouri NEA recognizes the value
in discussing issues regarding alternative teacher programs.
However, the Association opposes creation of another alternative
certification program that lacks adequate requirements to
ensure those teachers are properly trained in essential teaching
competencies before achieving full certification. Missouri
NEA supports revisions to the existing alternative certification
program to address the weaknesses of that program with respect
to teacher preparation prior to entry into the classroom and
mentoring and support of such teachers in the first two years.
Those changes will increase the likelihood of success and
continued participation on the part of the participating teachers
and better ensure quality instruction for our students during
this transitional time.
HOUSE
ELEMENTARY AND SECONDARY EDUCATION COMMITTEE
The House Elementary and Secondary Education Committee heard
the following bills on Feb 8:
House
Bill 469 (Maynard Wallace) expands the liability protections
for school employees and volunteers. Missouri NEA strongly
supports the intent of this bill to expand liability protections
to all district policy areas but has a specific objection
to the provision that would allow school districts to require
any employee to receive training to administer medication.
The Association believes that education employees should have
the right to refuse to administer medication or perform medical
services without fear of repercussion. The Association urges
the legislature to ensure that only school nurses and other
medical professionals may be required by a school district
to obtain training to administer medication. Rep. Wallace
acknowledged the need to address MNEA’s concern and
promised the committee to work on the issue with the intention
of bringing back a proposed committee substitute that would
be agreeable to all interested groups.
H.B. 196
(Gary Dusenberg) allows school boards to commission certified
law enforcement officers to stop, detain and arrest persons
for local violations and certain crimes committed on school
premises, at school activities or on buses.
H.B. 33
(Jane Cunningham) requires governing boards at public colleges
and universities, community college districts and school districts
to take roll-call votes on school policy matters.
H.B. 38
(Jane Cunningham) establishes procedures for the evaluation
of credits for students transferring into an accredited public
school district from an unaccredited public or nonpublic school
or home school.
H.B. 29
(Jane Cunningham) was scheduled for hearing but was not heard
due to lack of time. The bill establishes term limits for
members of the governing council of the Special School District
of St. Louis County. Currently, no term limit applies, and
each district school board selects one of its members to serve
on the governing council. Missouri NEA opposes the term limit
proposal as an unneeded intrusion on the selection of a school
board representative from these districts.
KINDERGARTEN
VISION SCREENING
The Senate Seniors, Families and Public Health Committee met
on Feb. 6 to hear Senate Bill 16 (Delbert Scott) which requires
that each child enrolled in kindergarten or first grade receives
a comprehensive vision examination. Missouri NEA supports
the objective of ensuring that all students have a vision
screening and all vision problems are diagnosed as early as
possible. Sen. Scott offered a committee substitute to eliminate
the unfunded mandate by allowing parents to “opt”
their students out of the vision exam. While this eliminates
the Association’s opposition to the mandate, a larger
concern remains that needy children may remain unserved and,
thus, struggle in school with impaired vision. Proper vision
correction is essential to learning to read and, ultimately,
to school success. Given the belief by some that the state
has a surplus, the Association believes the state should invest
funds to ensure that all beginning students are in school
and ready to learn and needy students get the vision exams
and eyeglasses they need to see properly in school and learn
to read. This is a far better choice for the state than to
cut taxes in a regressive way that gives the most tax benefit
to wealthy individuals and permanently reduces state revenues.
The bill’s fiscal note indicates that about $500,000
would cover the uninsured costs of the comprehensive vision
exams.
LABOR
ISSUES
The Senate Small Business, Insurance and Industrial Relations
Committee heard several bills relating to Project Labor Agreements
and prevailing wage law on Feb. 6.
Senate
Bill 339 (Rob Mayer) revises the prevailing wage law. After
considerable negotiation, Sen. Mayer was able to present a
proposed committee substitute that had support from numerous
business and labor organizations. The bill includes enhanced
penalties for violations of the prevailing wage law by contractors.
Missouri NEA joined with other labor groups in supporting
the bill. No witnesses spoke in opposition. The Association
appreciates Sen. Mayer’s effort in bringing the parties
together to achieve a consensus on the bill. Sen. John Loudon,
the committee chair, also seemed agreeable to the proposed
committee substitute.
S.B. 175
(Tim Green) strengthening the prevailing wage law was not
heard due to support for the compromise version of S.B. 339.
S.B. 178
(Tim Green) bars employers from misclassifying employees as
independent contractors. This bill will protect workers from
loss of benefits due to this kind of reclassification abuse.
S.B. 181
(Tim Green) creates the "Public Service Accountability
Act.” The bill requires most public bodies to analyze
costs and benefits of privatizing their services for any service
valued at $25,000 or more. They must specify the services
to be contracted and the specific quantity and standard of
quality which will be used to solicit bids. Missouri NEA supports
this bill to highlight and maintain the value of service accountability
in the public sector.
HOUSE
HIGHER EDUCATION
The House Higher Education Committee heard several bills on
Feb. 7:
House
Bill 250 (Ed Robb) increases the amount of the Higher Education
Academic Scholarship Program, commonly known as Bright Flight,
from $2,000 to $4,000 a year. Missouri NEA went on record
in support of this change.
H.B. 313
(Vicki Schneider) allows two-year public and private nonprofit
vocational and technical schools to participate in the A+
Schools Program and establishes the Community College Associate
Degree Transfer Incentive Program.
H.B. 134
(Jim Guest) extends the sunset provision for equipment grants
for engineering programs at the University of Missouri to
June 30, 2017.
IMMIGRATION
AND HIGHER EDUCATION
The House Special Committee on Immigration heard House Bill
369 (Jerry Nolte) on Feb. 7. The bill bans all undocumented
aliens from attending public institutions of higher education.
Missouri NEA went on record in opposition. The Association
believes that denial of education services is not a substitute
for comprehensive immigration policy reform. The committee
voted the bill “do pass” after the hearing concluded.
JOINT
COMMITTEE ON EDUCATION
The statutorily created Joint Committee on Education held
an organizational meeting on Feb. 7. The committee selected
Rep. Scott Muschany as chair and Sen. Rob Mayer as vice-chair.
The committee members suggested several possible topics for
the committee to study: urban education and St. Louis schools
in particular, other districts with low student achievement
scores, implementation of the new funding formula and early
childhood education.
CAPITOL
ACTION DAYS
MNEA’s Capitol Action Days rounded out its first week
on Feb. 7. MNEA members from Governance Districts 4 and 11,
higher education members and others, including members from
the Liberty local, came to the Capitol to meet with legislators
and discuss Missouri NEA’s priority issues and how to
support great public schools. The Association thanks those
participating in the first week of Capital Action Days for
getting the program off to great start!
Capitol
Action Days offer a chance to educate legislators about vital
issues affecting public education. Capitol Action Days will
be on Tuesdays and Wednesdays starting this week and continuing
through the first week of May. Your MNEA calendar includes
the dates that members of the MNEA Board of Directors selected
for your Governance District. If you are not able to attend
on these designated days, feel free to contact Otto Fajen
(otto.fajen@mnea.org)
to arrange to attend a different Capitol Action Day. Each
Capitol Action Day will start with a briefing at 10:00 a.m.
to provide you with the most up-to-date information.
PLAN
TO ATTEND YOUR MNEA LEGISLATIVE BRUNCH
Legislative involvement is close to home at your MNEA Legislative
Brunch. The brunch is a great opportunity to visit with local
area legislators and hear a legislative briefing. Area legislative
brunch schedule:
St. Louis
– Feb. 10
Jefferson County (Festus) – Feb. 24
St. Charles – Mar. 3
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