Special session defies expectations

JEFFERSON CITY, Mo. -- After just eight workdays and scant partisan division, the General Assembly completed a legislative hat trick and wrapped up its special session.

Gov. Bob Holden called lawmakers back to town Sept. 5 to complete work on two tasks left unfinished when the regular legislative session ended in May -- passing a prescription drug program for senior citizens and changing a livestock pricing law that some felt was hurting small farmers. Lawmakers were also charged with exempting the recent federal tax rebates from state income levies.

In the weeks leading up to the special session, many lawmakers predicted their work could take weeks to finish, particularly crafting the prescription drug plan. However, the most divisive issues were resolved days before the session began, making for a relatively smooth process.

Lawmakers sent all three bills to the governor's desk Friday afternoon.

"As far as I am concerned, it has been a bipartisan lovefest," Senate President Pro Tem Peter Kinder said as the upper chamber concluded business.

Targeted drug plan

The new prescription drug plan replaces a $200 per person pharmaceutical tax credit adopted in 1999. The tax credit was anticipated to cost the state $20 million a year. The actual cost turned out to be more than $80 million a year, in part because it was handed out to senior citizens even if they spent little or no money on prescription drugs.

The new program targets those age 65 or older who have an annual income of less than $17,000 for an individual or $23,000 for a married couple. Participants will be required to pay enrollment fees of $25 to $35 and a minimum deductibles of $250 or $500, depending on their income.

The price of the program was the key issue during legislative debate. The Legislature's own fiscal researchers tabbed the program's first-year cost at nearly $100 million. However, a private actuarial firm hired by the state task force that crafted the bill put the cost at $60 million for the first year.

State Rep. Pat Naeger, R-Perryville, was the bill's lead GOP sponsor in the House of Representatives. Naeger said he is "absolutely confident" that the lower figure more accurately reflects the program's cost. The higher figure assumes more Missourians will participate than is likely, Naeger said.

Despite tight budget times that led the governor to recently order most state departments to reduce spending, Holden and legislative leaders said the state can afford the program.

Naeger noted that the program is subject to legislative appropriations and that if in future years the cost is too high, it wouldn't be funded.

Livestock law

The changes in a 1999 livestock pricing law was in response to threats by major livestock buyers to pull out of Missouri. According to one estimate, Missouri producers lost as much as $20 million in sales because of the law.

"The old law was intended to protect livestock producers, but actually caused buyers to pull out of the cash markets where most small- and medium-sized producers sell their livestock," said state Sen. John Cauthorn, R-Mexico and the bill's Senate sponsor.

The tax exemption measure will cost the state approximately $30 million in lost revenue, but will save taxpayers up to $18 per individual.

Free-spending GOP?

In an odd twist on traditional partisan stereotypes, House Republicans attempted to restore nearly $9.6 million in spending for social programs vetoed from the current budget by Holden, a Democrat. The attempted veto overrides were blocked by House Democrats.

The attempts came during Wednesday's veto session, legislators' annual opportunity to make law measures rejected by the governor.

The Senate finished its veto session within minutes, making no move to override the governor. The House, however, spent more than three hours trying restore funding for purposes ranging from raising the reimbursement rate for foster parents to increasing funding for domestic violence shelters.

Republicans said they were simply trying to protect essential state services. Democrats countered that the GOP's true goal was to create a political issue to use against Democrats in next year's elections.

Producers deny gouging

Following the sky high jumps in gasoline prices reported in many areas of the state hours after Tuesday's terrorist attacks in New York and Washington, a petroleum marketers group said it wasn't to blame.

"The Missouri Petroleum Marketers and Convenience Store Association is unaware of member who is allegedly price gouging the consumer," said Ron Leone, the group's executive vice president. "If a consumer believes that an isolated, rouge fuel retailer is in fact price gouging, the best thing to do is drive to another retailer in the are who is selling their fuel at a fair price."

Attorney General Jay Nixon said his office is investigating reports of price gouging and will prosecute those suspected of doing so.

mpowers@semissourian.com

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