Spending limits

The biggest issue facing Missouri legislators, now that they've passed the halfway point of this year's session in Jefferson City, is how to stretch available dollars to meet all the requests for funding.

While other bills are competing for attention, most of the legislative focus and most of the public's awareness is focused on how to cram everything into a $19 billion spending limit -- about flat with the current fiscal year's spending.

Gov. Matt Blunt's budget proposal exceeded anticipated state revenue by nearly $240 million. The governor, knowing a balanced budget would have to be passed, hoped cuts could be made through more efficient operations to offset the difference.

The ballooning costs of two major items, Medicaid and education, have received most of the General Assembly's attention so far this year. Blunt, with the support of many members of the Republican-dominated legislature, wants to cut Medicaid spending, which is intended to provide health care for the state's neediest residents, at the same time more money is appropriated for public education.

Essential cutbacks

The effort to put reins on Medicaid is essential. This program's growth in recent years has put it on a course to bankrupt the state in the not-too-distant future. So any attempt to remove Medicaid recipients who don't qualify or who have been receiving benefits fraudulently should not be a matter of much concern. Instead, the effort to slow down the growth in Medicaid spending has prompted strong resistance even from programs that aren't going to be affected.

As for education funding, the legislature is having to balance funding requests with an attempt to tweak the formula that governs how state funds are distributed to school districts. The upshot of both efforts is a major increase in proposed school funding.

Two major flaws

There are two flaws, one in the Medicaid program and the other in school funding, that appear to be as off limits for serious review as the third rail of federal politics, Social Security.

Currently, there are loopholes for well-off Missourians in Medicaid guidelines big enough for a hippopotamus to walk through. Under these guidelines, elderly Missourians who have worked and saved and own their own homes and other assets can legally hide those assets so they will qualify for nursing-home care at the expense of a liberal Medicaid program.

While most of the outrage over Medicaid reform has spotlighted the truly needy who might lose benefits, almost no attention has been given to the way Missourians intent on passing on an inheritance to their families can rely on Medicaid to take care of them in their old age.

And spending more for education? There's probably not a school board member or administrator in Missouri who doesn't believe more dollars are needed to provide better schooling for our children. And there's hardly a legislator who is willing to risk his or her political future on pointing out the obvious: More spending doesn't automatically mean better public education.

Spending pressure

The pressures of this year's budget process have rightfully drawn attention to needed reforms in state government and how Missouri's tax dollars are spent. At the same time, pressure is mounting for additional taxes whose revenue would make budgeting a snap.

Spending on the Medicaid program and public education needs to be fair and balanced. But neither program has to break the state's checking account.