Plan to end tax break for Missouri seniors, disabled stalls

JEFFERSON CITY, Mo. -- Missouri's top Senate budget writer said Thursday he's not counting on money from a contested proposal that would eliminate a tax break for low-income senior and disabled renters as he plans next year's budget.

The Republican-led House has voted to end the tax break to spare cuts to other programs for the elderly and disabled in the next fiscal year, but that plan has met pushback in the Senate.

Senate Democrats spoke overnight and into Wednesday morning to block a vote on the measure. Without it, Senate Appropriations Committee chairman Dan Brown said at least $52 million in cuts to other programs are needed to balance the budget in the fiscal year that begins in July.

"As far as I'm concerned, right now, I have to move forward, as that ship's sailed," the Republican said.

The budget crunch comes as Missouri's revenue has been growing this year, but not by as much as needed to fully fund the current budget. Declining corporate tax revenue is part of the reason. Republican Gov. Eric Greitens and House Budget Committee chairman Scott Fitzpatrick also have cited growing spending demands, particularly by the Medicaid health-care program for low-income residents.

Greitens initially recommended cuts to services for in-home and nursing care for seniors and people with disabilities to address shortfalls, but he later backtracked.

Fitzpatrick instead proposed eliminating the tax break for low-income senior and disabled renters, which the Department of Revenue estimates went to 98,400 renters that received $56.3 million last fiscal year.

The legislation faces an uphill battle in the Senate, though. Brown said it's "not going to happen," although there's still some time if supporters want to try again before the session ends May 12.

Brown wants to make up a potential budget hole that would be left without that tax revenue by cutting some in-home care and nursing home services, though not as severely as Greitens first proposed.

He said other money could come from basic aid to public K-12 schools and school transportation funding. Brown said unexpected tobacco settlement money could be used to soften potential cuts.