Missouri's 'recovery' leaves thousands in critical condition

By Ruth R. Ehresman

Policies that make Missouri a desirable place for investment and business development are certainly good for our state. However, for state Sen. Jason Crowell to credit Missouri's economic recovery to legislative changes that have been enacted for less than a year is a long stretch. (July 14, "Missouri economy is on track to a recovery").

While we don't dispute that Missouri's financial picture is rosier than in recent years, we take exception to several of Senator Crowell's statements: "Investment has paid off for all citizens" and "Fewer people needing state assistance means that more people are self-sufficient." In spite of a healthy budget surplus of $292 million in the fiscal year ending June 30 and the creation of some jobs, many Missourians simply are not better off than they were two years ago.

The "fewer people needing state assistance" that Crowell refers to are the lower numbers of families receiving cash assistance from the Temporary Assistance for Needy Families program. These numbers have decreased from 120,800 individuals (July 2004) to 113,700 (May 2006). That is good news.

However, it is unlikely that these families have moved into jobs which allow them to be self-sufficient. More likely, they have joined the growing ranks of the working poor.

We have seen an increase in the number of children eligible for free and reduced lunches in schools -- now at an all-time high of just over 40 percent of all students. The increasing numbers of people who participate in the food-stamp program strongly suggest that more families are struggling to meet their basic needs. Food stamp participants have increased by 87,000 people since July 2004. In May 2006, nearly 800,000 Missourians received food stamps -- about 80 percent of them families with children.

Loss of health insurance compounds low-income working families' challenges to be self-sufficient. Using July 2004 as a baseline, 54,200 fewer children are insured this year by Medicaid and the State Children's Health Insurance Program. Even more Missourians have lost access to Medicaid health insurance: 80,600 fewer adults; 7,000 fewer people with disabilities, and 2,000 fewer elderly.

Survey results summarized in a March report by the Missouri Budget Project and the Missouri Association for Social Welfare indicate that those whose Medicaid insurance was cut by the Missouri Legislature in 2005 are scrimping on food and utilities, cutting back on prescriptions or forgoing needed medical care (see the report "Losing Health Care in Missouri" at www.mobudget.org).

While we are glad that Missouri is experiencing an economic recovery, not all boats have risen with the tide. Our public policy needs to pay attention to those who are still mired in the mud.

We also urge Missouri policymakers to remember that building a desirable business climate requires developing an infrastructure that includes good schools, opportunities for quality higher education and a healthy population.

Missouri now has surplus revenue. Seize the opportunity to make up lost ground in adequately funding elementary and secondary education, higher education, mental health and health care.

Ruth R. Ehresman is director of health and budgetary policy for the Missouri Budget Project in St. Louis.