By BRENT MARTIN
St. Joseph Post
Missouri lawmakers generally look back fondly on the recently concluded legislative session, with one glaring exception.
Legislators failed to extend the Federal Reimbursement Allowance, known as the FRA, crucial to the funding of the state Medicaid program.
Gov. Mike Parson has been asked to call a special legislative session to address the issue, but tells Missourinet in an interview he’s hesitant to call lawmakers back unless assured an agreement has been reached.
“I think it’s going to really be up to the House leadership and the Senate leadership and Cody (Rep. Cody Smith, House Budget Committee chair) and Dan (Sen. Dan Hegeman, Senate Appropriations Committee chair), the people really involved in this, to come to me and tell me they have a plan in place and they’re going to get it passed,” Parson tells Missourinet. “Short of that, we’re not going to call a special session.”
Sen. Dan Hegeman of Cosby tells St. Joseph Post negotiations are progressing to give the governor the assurance he wants.
“See if we can find some resolution to some of the concerns that are out there, including concerns the governor has expressed, as well as others,” Hegeman says. “I think the urgency to get this done and to fill the $3 billion hole that could be created in our budget is necessary for us to be able to work out these differences and move forward.”
Missouri could be heading toward a financial crisis if state lawmakers cannot reach agreement.
The Missouri Hospital Association reports the provider tax was first created in Missouri in 1991, due to state budgetary problems. It was expanded and enacted into laws as a provider tax in 1992. The tax on hospitals provides the state match to draw down federal funds. Together, the funds total approximately $3 billion.
Hegeman points out the FRA sunsets at the end of September. If not renewed, the state would be forced to cut its budget drastically and, perhaps, reduce services.
“I don’t know that either one of those is acceptable if we can find a resolution to this and move forward,” Hegeman says.
The House approved extension, but the issue got hung up in the Senate over an abortion dispute.
As for reaching an agreement that would give the governor enough confidence to call legislators back to Jefferson City, Hegeman hesitates.
“We’re working on it right now,” Hegeman says. “It’s
a work in progress and we’ll continue to work for it and hopefully we’ll have
something put together by the end of the month.”
Hegeman says he has been in touch with the governor.
“We’ll continue to talk with the governor and the senators involved and see if we can find a path forward.”
Not there yet, though.
“Not there yet, but we will get there.”