Jefferson City, MO - Sparks will be flying this week, as lawmakers debate the House version of the state budget. The Missouri House Budget Committee has proposed deep cuts that some say will unnecessarily harm thousands of Missourians and leave unmatched federal dollars on the table.

The long list of possible cuts that could affect 70,000 Missourians includes Medicaid, mental health services, child care for low-income families, even clothing and diapers for foster children. Members of the House Budget Committee say the cuts are about thinking long-term, and they want stimulus dollars spent on a one-time tax rebate or on construction projects.

Amy Blouin, executive director of the Missouri Budget Project, says the deep cuts are unnecessary and there is plenty of money to go around, with more than one billion dollars in federal money remaining.

"Only about 200 million of it would be needed to restore health, mental health, and social services. There's a lot of room left there, a lot of wiggle room."

Blouin says the state stands to forfeit more than 160 million dollars in federal matching funds which are meant to prevent cuts to critical services during an economic downturn and to maintain and create jobs that will stimulate the economy. She says that by failing to take advantage of the funds, Missouri could worsen its budget problems.

"We are probably going to be falling behind other states in our recovery, and we are likely to see our tax revenue go to other states."

Members of the House Budget Committee continue to comment on how this budget is extremely complicated for everyone involved.

Blouin says if the House version of the budget passes, Missouri could also lose about 3,700 additional jobs. Once approved, it will move on to the Senate for debate.

More information is online at www.mobudget.org


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INDIANAPOLIS -- A new coalition is forming to push back against predatory lending and urge state lawmakers to take action to protect consumers.

Indiana has 286 payday-loan storefronts, where people go to take out small loans with high interest rates, and borrowers are often low-income residents who cannot pay the loans back and get caught in a debt cycle.

Natalie James, one of the leaders of the Hoosiers for Responsible Lending coalition, said predatory lending has been an issue brewing for years, and she noted the pandemic has made many folks more financially insecure.

"We aim to send a message to our federal and state lawmakers that a pandemic is no time to allow lenders to take advantage of Hoosiers' financial distress," James asserted.

Among payday borrowers, 82% take out another loan within 30 days of paying off their previous one. James noted some states have reasonable caps on the annual percentage rate (APR), the overall cost of financing these loans, including fees, but Indiana is not one of them.

Andy Nielsen, another leader with the coalition, said they support legislation to cap the APR for payday loans at 36%. In Indiana, the current cap is 391%.

Nielsen explained, "36% APR has been a long-held rate that preserves a borrower's ability to repay, and allows lenders to still earn a profit."

Nielsen added payday loans drain $60 million a year in fees from Indiana consumers, and with a 36% APR cap, they could save millions of dollars.

Sixteen states plus D.C. have already implemented similar caps, and a study in North Carolina shows the absence of payday lenders has not impacted credit availability for low- and moderate-income families there.

HARRISBURG, Pa. -- More than 200 high earners have written a letter urging Congress to raise taxes to help support social safety-net programs that would have a major impact on Pennsylvania.

The $3.5 trillion budget plan unveiled by House Democrats would increase taxes on the country's wealthiest to help fund the Biden administration's Build Back Better agenda, which would lower costs on child care and health care, and also create jobs to tackle climate change.

Ashley McBride, state director of For Our Future Pennsylvania, said the plan is ambitious but necessary to move the state and nation forward.

"This idea of folks paying their fair share, it doesn't seem like rocket science," McBride contended. "It is something that we should want to do in communities in which we live because we know when our neighbors thrive, it also means that we thrive. We still know that there are millions upon millions of Americans and folks across the Commonwealth who could still benefit greatly from their prescription-drug costs being lower."

Nine Pennsylvanians were among those who signed the letter addressed to House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer. A recent poll showed Americans overwhelmingly support raising taxes on the wealthy instead of borrowing and increasing debt.

Sandra Fluke, president of Voices for Progress, the lead organizer behind the letter, said investments in the Build Back Better plan are key to rebuilding the economy and dealing with the climate crisis.

"And we only have to look out of our window to see what is happening in terms of the severe weather being caused by climate change," Fluke observed. "So we gotta make those investments and not be giving away tax cuts to corporations that are actually lower than they even asked for."

House Democrats' new proposal calls for a corporate tax rate of 26.5% and an individual tax rate of 39.6%. The Biden administration has pledged to not increase taxes for anyone making under $400,000 annually.

FARGO, N.D. -- This month, Congress could give final approval to a $1 trillion infrastructure bill. With cold weather on the horizon, there could be extra money to help qualifying North Dakotans protect their homes from winter chills.

Since the mid-1970s, the Weatherization Assistance Program has helped low-income homeowners and renters make their homes stronger and more energy-efficient. Its usual annual budget is about $300 million, and the infrastructure plan would tack on $3.5 billion.

Andrea Olson, executive director of the Community Action Partnership of North Dakota, said its weatherization staff often works with seniors who want to stay in their own homes, but need assistance to make them livable.

"It needs some additional work to keep that home safe for them," Olson explained. "We also want to help them, you know, save money from heating costs."

Upgrades often include furnace repairs and installing insulation. Currently, there's a waiting list of nearly 300 in North Dakota for weatherization services, and Olson noted the additional funding would allow them to expand their reach. The current version infrastructure bill has bipartisan support, after Republicans argued the original plan was too large.

Brandon Kjelden, energy and rehab coordinator for the Southeastern North Dakota Community Action Agency, said certified crews do a lot of important work to ensure a home is energy efficient and safe.

"For example, we verify how much air is leaking in and out of the house, prior to weatherization and after," Kjelden recounted.

Fuel-burning appliances also are tested to ensure they're not emitting harmful emissions. Agency officials say it protects the health of residents, and helps them avoid future medical costs.

And Olson added investing in home weatherization is also an economic boost to local communities.

"The majority of these dollars is locally spent," Olson observed. "We work with contractors that are local."

The Senate already passed the spending bill, and a final House vote is expected by the end of this month.