Tuesday, February 9, 2010

Purgason encourages conservatives to sign Contract with Missouri

Republican Senate candidate Chuck Purgason wants candidates to support a contract with Missouri that includes conservative principles.

"I truly believe that we must have leaders willing to stand up to the special interests in Washington and begin working for the long term viability of our nation," Purgason said in a press release. "They must show leadership and tell the truth about the problems we are facing as a nation. This is my commitment to the people of the State of Missouri."

The Contract's seven pillars include the following:

1. Balanced Budget
2. No Earmarks
3. No member of my family will be a lobbyist
4. No TARP or other so-called Stimulus Package programs
5. No Campaign Funds from Bailed Out Companies
6. I will have no fundraisers outside the State of Missouri
7. Self-Imposed Term Limit of Two Terms

Purgason is challenging Congressman Roy Blunt and businessmen Robert Praprotnik and Mark Memoly for the Republican nomination for Missouri's open U.S. Senate seat. The winner of the Aug. 3rd primary will likely face current Missouri Secretary of State Robin Carnahan.

Related Links:
Purgason Campaign Website

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AGO Collection rates down in workers comp fraud cases, dollars collected up

FACT CHECK

Claim: In mid-Jan. Attorney General Chris Koster's (D) office announced a "dramatic increase in workers' comp fraud collections in 2009."

"This office takes seriously its obligations to our state's business community, and individuals who steal from our workers' compensation system undermine a sound business climate," Koster said in a press release.

The presentation of the claim was somewhat surprising since Koster's predecessor, Jay Nixon (D), currently resides in the Governor's Mansion. The claims of massive increases in fines suggest there are corresponding increases in convictions and collections, and that Koster's team is more effectively combating fraud than Nixon did during his tenure.

Facts: While Koster's press release presents true information, according to official reports from the Attorney General's Office, it provides the information in a slightly misleading presentation.

It's true that the number of referrals increased by 30 cases, the number of convictions jumped by 12 cases, levied fines and penalties increased by $377,000 and that total collections increased by $187,900. But Koster's press release makes no indication that conviction rates decreased marginally, from 21.3 percent to 20.8 percent. The rate here is more important than the raw number because it normalizes the data across years.

The glaring omission from Koster's press release, however, is that collection rates for levied fines took a steep fall, from 85 percent in 2008 to just 69 percent in 2009. This is the figure that tells us out of total fines levied, how much was actually paid. Based on state data, that trend is not looking so rosy.

Koster claimed the increase in cases could be attributed to staff realignments. Perhaps Koster's team will also choose to focus on increasing collection rates in the future since it's one thing to win a conviction, and another to ensure proper enforcement of ordered fees and restitution.

Related Links:
AGO Press Release

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Monday, February 8, 2010

Federal government shuts down due to blizzard in D.C.

The federal Office of Personnel Management announced this evening that the federal government in Washington D.C. will be shut down again Tuesday due to blizzard conditions that struck over the weekend. Some areas in D.C. received more than 24 inches of snow in a one day period.

Federal employees in D.C. were dismissed early last Friday and ordered not to report on Monday or Tuesday.

OPM estimates that each day the government is shut down, the cost of lost productivity is approximately $100 million. Using that estimate, so far the most recent blizzard in the northeast cost taxpayers $250 million.

According to the National Weather Service, the region is expecting another 10 to 20 inches of snow on Tues. and Wed., which means more days of closures may come later this week.

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MoDOT obligates federal stimulus funds ahead of schedule

The Missouri Dept. of Transportation (MoDOT) reported today that it has obligated the full $524.6 million received from the federal stimulus package.

The obligations are important because a provision in the American Recovery and Reinvestment Act stipulates that states that fail to obligate funds from certain programs by next month would have that money pulled by federal agencies and redistributed to states able to obligate their money. The provision was intended to ensure expeditious spending, to meet the goals of the stimulus package.

"From launching the nation's first transportation stimulus project to obligating all of our recovery act funds ahead of schedule, MoDOT has worked rapidly to show that transportation projects do play an integral role in supporting jobs and rebuilding our nation's economy," MoDOT Director Pete Rahn said in a press release. "While these funds don't come close to covering all of our transportation needs, they have helped fill a short-term gap as other federal and state resources continue to decline."

MoDOT has 187 projects slated for completion in coming years and estimates those projects will support 12,500 direct, indirect, and induced jobs.

MoDOT's press release also notes that bids for all planned projects came in $24 million under estimates, enabling an additional 53 recovery act projects.

To date Missouri has spent $2.05 billion of the $2.42 billion in stimulus funding received from the federal government. In the final quarter of 2009, recipients estimated 16,022 jobs were created from stimulus funds in Missouri.

Related Links:
MoDOT Recovery Website
Missouri Stimulus Website
Recovery.gov, Federal Stimulus Website

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House District 2: McClanahan rakes in $62,000 for election to date, likely challenger emerges

Second-term Rep. Rebecca McClanahan (D) raised nearly $62,000 to date for her re-election campaign, $11,700 of which came in during the final quarter of 2009.

District 2, which includes Kirksville and other parts of Adair County, was long held by Republicans until McClanahan narrowly defeated Nancy Summers in 2006 by a 1.4 point margin.

And so far this election cycle, McClanahan and Democrats have shown they aren't willing to lose this seat, especially without a costly fight. Even with McClanahan's substantial fundraising to date, MPN rates this district as a "lean Democrat" given the historical propensity for voters to swing between parties.

The fundraising momentum will be important as the first of potentially several Republican challengers announced his intention to run against McClanahan. Twenty-five year old political novice Zach Wyatt (R), a Novinger native, announced his intention to challenge McClanahan and is currently garnering support through Facebook, an online social media forum. Wyatt has not yet formed a political committee with the Missouri Ethics Commission and will not be able to raise funds for a campaign until doing so.

McClanahan (D) Campaign Finance Report
McClanahan's fourth quarter fundraising fell far below the first quarter of 2009, but still brought in $11,705 during the three month period. Of total receipts during the period, 63 percent ($7,415) came from businesses and individuals, averaging $75 per contribution, and 36 percent ($4,225) came from other political committees.

For the entire election cycle, McClanahan raised $61,955, half of which came from political committees, mostly during the first quarter of 2009, and the other half from individuals and businesses. 44 percent of McClanahan's total contributions came from individuals inside Missouri.

McClanahan's committee also reported $48,483 in disbursements including $3,446 in contributions to other candidates and committees. Contributions over the last quarter include $100 to Lifeline Pregnancy Resource Center in Kirksville and $250 to the American Heart Association. Contributions from previous quarters were made to the Friends of the NRA, Kirskville Band Boosters, and Putnam County Relay for Life.

At the end of the period McClanahan's committee reported $48,167 cash-on-hand and $1,000 in debt.


Related Links:
McClanahan Campaign Finance Reports | McClanahan Campaign Website
Wyatt Facebook Group

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Sunday, February 7, 2010

State government doled out $144 million in tax credits to date for 2009

Even as state revenues are declining, Missouri government doled out $144 million in tax credits in 2009.

The tax credits are applied for based on statutorily authorized programs, ranging from subsidies for wine and grape producers to film production support.

Historical Perspective on Tax Credits
In nominal terms, tax credit expenses increased from 2001 to 2006 by more than $200 million. From 2006 to present, the trend has declined sharply.

The downward trend is due in part to a general decline in economic activity in 2008 and 2009, but may also be due to the fact potential recipients of 2009 tax credits have not yet filed appropriate paperwork to claim their credit. In other words, the 2009 data should be interpreted with extreme caution. Even given this caveat, it's clear businesses are claiming fewer tax credits in light of the recession.

Tax Credit Uses
More than half of the tax credit expenses for 2009 were accounted for by housing projects related to low income or affordable housing. Collectively these tax credits accounted for $75.2 million, or 52 percent of all tax credits claimed to date.

The next largest categories were for redevelopment (e.g., Brownfields) and job retention training. These programs accounted for $29.6 million (21%) and $20.6 million (14%), respectively.

Tax Credits by Legislative Districts
The distribution of tax credits is also unequal across the state, even when considering by legislative district. In MPN's analysis, businesses from 60 House districts received no tax credits in 2009. On the senate side, just one district received no credits in 2009.


Tax Credits by Senate District
The greatest value of tax credits in any single district was in Senate District 5, represented by State Sen. Robin Wright-Jones (D). Businesses in that St. Louis district received 81 tax credits valued at $26.9 million. The majority of these tax credits were for housing developments or brownfield redevelopment activities.

Business in State Sen. David Pearce's (R) district, District 31 which includes portions of Cass and Johnson counties, claimed no tax credits in 2009 to date.

Districts held by Democrats received an average of $6.9 million in tax credits whereas districts held by Republicans received an average of $2.7 million.
Tax Credits by House District
St. Louis City received the most in tax credits, House District 63 in particular, represented by Tishaura Jones. So far for 2009, businesses in the district received 49 tax credits valued at $24 million.

Related Links:
Missouri Map Your Taxes Tax Credit Website

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Saturday, February 6, 2010

Missouri State Government Expenditures in 2009

Below is a quick overview of Missouri's state expenditures for 2009, using publicly available data from MapYourTaxes.

The majority of the state's expenses are tied up in social programs, including the Dept. of Social Services, Mental Health, and Health and Senior Services. These three agencies accounted for 44 percent of 2009 expenditures.

The next largest expenditures are the two education departments, which accounted for 34 percent of the state's 2009 expenses.

In particular note that many programs we spend a substantial amount of the time discussing receive relatively little funding. For instance, collectively the three environmentally-related agencies account for just 2 percent of the state budget, much of which is actually offset with fees and federal grant funding.

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Friday, February 5, 2010

Nixon appointed by President Obama to National Governors Council

Missouri Gov. Jay Nixon (D) was picked this week to serve on a new Council of Governors, created this year in an Executive Order signed by President Barack Obama.

The bipartisan council, made up of 10 governors appointed to 2 year terms, will coordinate defense and security issues between state governments and Federal agencies, specifically issues related to various national guard units.

"Close cooperation and communication between the federal government and the states are vital if we are to make the most effective use of state resources on matters of national defense and homeland security," Nixon said in a press release. "Having personally seen the accomplishments of the Missouri National Guard both here in Missouri and in Afghanistan, my focus on this Council will be to ensure that we continue to use our Citizen-Soldiers and Airmen to the best effect possible on these fronts."

According to the White House, the Council will be co-chaired by Vermont Gov. Jim Douglas (R) and Washington Gov. Chris Gregoire (D). Other members of the Council will include Arizona Gov. Janice Brewer, Puerto Rico Gov. Luis Fortuño, Oklahoma Gov. Brad Henry, Virginia Gov. Robert McDonnell, Maryland Gov. Martin O'Malley, North Carolina Gov. Beverly Eaves Perdue, and South Dakota Gov. Michael Rounds.

Related Links:
White House EO Announcement
White House Executive Order: Establishment of the Council of Governors (PDF)

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Skelton Weekly Column: A More Responsible Approach to Energy Legislation

From Congressman Ike Skelton (D):

Last week, I introduced H.R. 4572, a bipartisan bill that would prohibit the Environmental Protection Agency (EPA) from regulating greenhouse gas emissions under the authority of the Clean Air Act. I submitted this legislation to the U.S. House of Representatives because, simply put, we cannot tolerate turning over the regulation of something as important as the American energy system to unelected bureaucrats.

In 2007, the U.S. Supreme Court ruled in Massachusetts v. EPA that the EPA had authority under the Clean Air Act to regulate greenhouse gas emissions. Since that time, EPA has been putting in place a framework to do just that.

I, like many residents of the Fourth Congressional District, do not agree with the Supreme Court. Congress never explicitly granted EPA the authority to regulate greenhouse gases, like carbon dioxide, under the Clean Air Act. Instead, that law was meant to eliminate lead in the air and to reduce smog.

Urgent Congressional action is needed to assert leadership and make clear that EPA does not have authority to regulate these sorts of gases. That is why I, along with Congressman Collin C. Peterson, the Chairman of the House Agriculture Committee, and Republican Congresswoman Jo Ann Emerson, a fellow Missourian, have submitted H.R. 4572 to the House of Representatives for consideration. If Congress does not act, unelected bureaucrats may soon be setting policies harmful to rural Americans.

This legislation sends a clear message that many of us in Congress are just plain concerned about what EPA is trying to do under the authority of the Clean Air Act and are ready to do something about it. And, agricultural and utility groups from the Fourth District, such as the Missouri Rural Electric Cooperatives, the Missouri Municipal Utilities, the Missouri Corn Growers, and the Missouri Soybean Association, agree.

I am very hopeful that H.R. 4572 will become law or will be included in any sort of responsible energy bill drafted this year. In my view, enacting common sense, bipartisan energy legislation, like the bill I have introduced, will help build consensus among the American people and Congress on energy and environmental reforms and allow for the United States to reduce greenhouse gas emissions over time.

Related Links:
U.S. Rep. Ike Skelton's Official Website

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House District 121: Cole outraises incumbent for second consecutive quarter

The race between incumbent state Rep. Denny Hoskins (R) and challenger Courtney Cole (D) is beginning to take shape, evidenced through recent campaign finance report filings.

Over the last quarter Cole raised $2.55 for every dollar received by Hoskins, a sign that Cole's campaign has picked up momentum since it's launch last August. In fact, this is the second consecutive quarter Cole outraised her opponent.

Hoskins, however, doesn't seem to be taking the race all that seriously yet and has not begun raising substantial funds from sources other than political committees.

MPN's House race ratings at the of 2009 labeled this district a toss-up, noting in part Cole's performance to date and also the fact that Hoskins won in 2008 by less than a percentage point.

On Cole's performance, just take for instance the significant following she developed on the social media platform Facebook -- more than 564 fans. On top of that, Cole has amassed a Twitter following that is currently greater than that of statewide Republican Auditor candidate Tom Schweich.

Compare Cole's use of social media to Hoskins who has just 225 followers on Facebook and a larger Twitter following, but with an account that has restricted access.

Hoskins (R) Fundraising
So far this election cycle, Hoskins reported raising $19,613 with $2,000 in outstanding debt. More than half of Hoskins' receipts to date came from political committees, a total of $11,190.

In the fourth quarter alone, Hoskins reported only 10 contributions, at an average of about $300 each. Four of those contributions were from political committees, two from Ameristar, and four from individuals.


We noticed just one anomaly in the reports for Hoskins: while Hoskins reported $2,000 in debt at the end of 2009, there was an additional $874 in loans reported in the third quarter, not indicated repaid in subsequent reports.

At the end of 2009, Hoskins reported $16,003 cash-on-hand.


Cole (D) Fundraising

Cole raised about $4,000 more than Hoskins to-date and has relied substantially less on political committees. 32 percent of Cole's fundraising comes from political committees and the remaining 68 percent is from businesses and individuals. Compared to Hoskins, Cole raised about $10,000 more from individuals and businesses to date, suggestive of strong grassroots support.

In the most recent quarter Cole reported $7,370 in receipts from 101 itemized contributions, the average from non-political committees was about $55.

At the end of the period Cole reported $18,182 cash-on-hand with no debt.


Related Links:
Hoskins Campaign Website | Hoskins Campaign Finance Reports
Cole Campaign Website | Cole Campaign Finance Reports

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