Gov. Blunt Warns Against Plans to Spend Budget Surplus on Taxpayer-Subsidized Welfare

Missouri Governor Matt Blunt's Office Press Release             JEFFERSON CITY - Gov. Matt Blunt's strong, conservative fiscal management of the state budget has resulted in an $833 million surplus, the third surplus in a row under his leadership.  Members of both political parties have acknowledged the surplus even though doing so acknowledges the success of the fiscal restraint, spending discipline, and responsible stewardship of Missouri tax dollars that has turned a $1.1 billion deficit into three straight surpluses without raising taxes.           But some politicians are salivating over the surplus as they announce political plans to deplete it by spending hundreds of millions of dollars on taxpayer-subsidized welfare.  It has also been falsely asserted that the $833 million surplus was solely generated from the 2005 Medicaid changes even though this action represents less than 50 percent of the changes Gov. Blunt made that year to rein in out-of-control spending.            Gov. Blunt enacted sweeping reforms across state government saving taxpayers hundreds of millions of dollars which together with saving Medicaid from bankruptcy have created a healthy surplus at the same time as other states were spending themselves into deficits.           "Strong, conservative management of Missouri's budget over the last three and a half years has turned a $1.1 billion deficit into three consecutive surpluses while cutting taxes and increasing education funding by $1.2 billion which is the largest such increase without a tax increase in Missouri's history," Gov. Blunt said. "Now some politicians want to spend the surplus on a big government welfare program that was nearly bankrupt before we reformed the system.  Despite liberal assertions, the changes we made to save Medicaid represent less than half of the changes we made to get spending under control in 2005.  Responsible budgeting has placed Missouri in the small category of states that are not experiencing budget shortfalls, deficits and other problems plaguing their fiscal stability.  Now is not the time to increase the size of government by spending the surplus on big government welfare programs, especially those we have successfully reformed by attacking waste and fraud, and removing ineligible participants.  Because of the surplus, radical proposals to dramatically increase welfare spending might be sustainable for a few years, but they will eventually drive the state to either bankruptcy or a tax increase."            Gov. Blunt also replaced the old broken Medicaid system with an entirely new system called Mo HealthNet which focuses on the health and wellness of the participant where the old system only provided assistance when the participant got sick.           The state's budget wrapped up Fiscal Year 2008 with an $833 million ending balance.  That balance becomes the starting point to begin the Fiscal Year 2009 budget and demonstrates the long term benefits of spending restraint.              Gov. Blunt's leadership on the budget has also moved the state's rainy day fund up by nearly $100 million dollars, from $463.3 million at the end of Fiscal Year 2005 to $557.3 million at the end of Fiscal Year 2008. Gov. Blunt has made it a priority to protect and grow the state's rainy day fund further strengthening Missouri's fiscal situation.             Since 2005, Gov. Blunt has kept his commitment to responsible, efficient and effective government. His efforts have saved hundreds of millions of dollars and put an end to out of control growth and spending of the past.  The change in the state budget under Gov. Blunt's leadership showed a smaller percent growth than all of the past eight administrations.            Since taking office Gov. Blunt:  Reduced the state work force to fewer than 60,000 employees for the first time in years Eliminated more than 235,000 square feet of wasted office space Identified innumerable ways to save taxpayer dollars, from consolidating maintenance and janitorial services to restructuring the state's entire information technology (IT) support system Reduced and consolidated energy use to save taxpayers nearly $16 million in energy costs every year. Initiatives range from centralizing and monitoring statewide energy consumption to utilizing landfill gases as a heating source Put an end to duplicate services across departments, such as programs in both the Departments of Corrections and Mental Health that provided the same services to convicted criminals Ensured the state is no longer spending money it did not have, on things it does not need           Gov. Blunt's leadership in managing the budget and getting spending under control is getting results.  In April, the National Conference of State Legislatures reported that Missouri is one of only 13 states projecting stable or optimistic revenue outlooks for 2009.           Responsible budgeting and a diligent effort to improve efficiency and save money have put Missouri in the black at a time when the Center for Budget and Policy Priorities is reporting that 29 other states face revenue shortfalls in their coming budgets totaling $48 billion.             "We must remain committed to being responsible with Missouri's hard earned tax dollars," Gov. Blunt said. "The spending proposals of liberal politicians would return us to the old broken system and lead towards another spending crisis. If we are going to spend additional state funds we should continue down the path I have led our state over the last three and a half years by ending the education cuts and withholdings and increasing education funding to ensure our children are prepared to compete for jobs in our global economy."           Over the last three and a half years, Gov. Blunt has increased education funding by $1.2 billion, the largest such increase without raising taxes in the history of our state. -- http://www.bransonedge.com http://www.bransonmissouri.blogspot.com