Rep. Justin Hill, R-St. Charles County, speaks during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Terry Thompson, R-Lexington, wears a pair of socks emblazoned with the Republican Party logo during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Peter Merideth, D- ºüÀêÊÓƵ, gives an impassioned speech during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
People listen in the gallery as the House debates a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to debate and vote on the tax bill, it has already passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Chad Perkins, R-Bowling Green, left, Rep. Bill Hardwick, R- Waynesville, center, and Rep. Jim Murphy, R- ºüÀêÊÓƵ County, confer during debate on Wednesday, June 30, 2021. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Sara Walsh, R-Ashland, left, Rep. Nick Schroer, R-St. Charles County, center, and Rep. Mary Elizabeth Coleman, R-Arnold, right, talk during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Raychel Proudie, D-Ferguson, motions to speak during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Mary Elizabeth Coleman, R-Jefferson County, left, Rep. Maggie Nurrenbern, D-Clay County, center, and Rep. Rasheen Aldridge, D- ºüÀêÊÓƵ City, talk during a special session to pass a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Colter Peterson
Rep. Keri Ingle, D-Lee Summit, works on her computer during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
JEFFERSON CITY — The Missouri House on Wednesday sent renewal of a major tax that funds the state’s Medicaid program to Gov. Mike Parson, warding off the likelihood of deep budget cuts by the governor.
Passage of the Federal Reimbursement Allowance came only after long debate on a separate bill banning funds from going to abortion providers and affiliates. The House sent that measure to the Senate, but GOP leaders in the Legislature’s upper chamber said they would not take it up.
Rather than attach the controversial ban to the Senate-approved bill, which would have sent the FRA renewal back to the Senate, House lawmakers opted to approve that bill without any changes, sending it to Parson.
The two-pronged approach allowed Republicans to approve the renewal in time for the start of the new fiscal year on Thursday and also put lawmakers on the record in regard to defunding abortion facilities.
The bill renewing the FRA won approval on a bipartisan 140-13 vote. The bill restricting funds to providers such as Planned Parenthood passed on a 109-45 vote, with only Republican support.
In a statement following the vote, House leaders including House Speaker , R-Arnold, called on the Senate to return and pass the ban on money for abortion providers.
But with the Senate adjourned, the Planned Parenthood legislation is dead for now.
Senate Majority Leader , R-Columbia, and Senate President Pro Tem , R-Sullivan, announced the formation of the Interim Committee on Medicaid Accountability and Taxpayer Protection that will partially focus on “the continued protection of unborn life in Missouri.â€
Schatz and Rowden last week said that with a commitment from Parson, through executive action, the state would be equipped to defund Planned Parenthood.
The two said Wednesday they “look forward to working with them (the House) and Governor Parson in the weeks and months to come to take definitive action to make these initial actions permanent.â€
Opponents of attaching new restrictions to the FRA renewal said doing so would jeopardize federal funds under Democratic President Joe Biden’s administration.
Democrats echoed those concerns Wednesday even though the ban to abortion providers was no longer tied to the FRA renewal, which accounts for about $4 billion of the state’s $11 billion Medicaid bill.
“The problem is, all this bill does is it puts us out of compliance with federal law, risking the very federal dollars that we are in fact trying to make sure we have with the FRA so that our Medicaid program is solvent,†said Rep. , D-ºüÀêÊÓƵ.
The push to defund abortion providers and affiliates through a standalone bill was led by Rep. , R-St. Charles County, who is running for state Senate.
“Missouri will not kowtow to the Biden administration,†said Rep. , R-Arnold, who is also running for the state Senate.
The House action followed Parson signing legislation authorizing the collection of sales taxes from online retailers.
The so-called “Wayfair†bill had been sought by the governor, mayors and brick-and-mortar businesses that have seen their sales drop as more people make their purchases via computer.
“Passing Wayfair legislation has been a top priority of my administration, and we are happy to be signing this critical legislation into law today,†Parson said. “This law will help even the playing field between Missouri small businesses and large, out-of-state retailers. With more than 570,000 small businesses in the state of Missouri, it is time that we establish a 21st century tax code that benefits our Main Street businesses rather than companies that don’t invest in our communities or employ our citizens.â€
Included in the package is a phased-in reduction in the state’s income tax rate, as well as an earned income tax credit, worth 20% of the amount allowed in the federal earned income tax credit.
Republicans included the income tax drop in the legislation in an attempt to make the change revenue neutral.
A fiscal analysis of Senate Bill 153 shows local governments could see an overall increase of $26 million in revenue once the law is fully implemented in 2028.
The state, however, could see an overall drop of $185 million in revenue by 2028.
The new Freedom Caucus vows to block tax on hospitals and nursing homes, which helps pay for Missouri’s Medicaid program, unless Planned Paren…
Rep. Justin Hill, R-St. Charles County, speaks during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Nick Schroer, R-St. Charles County, motions to speak during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Terry Thompson, R-Lexington, wears a pair of socks emblazoned with the Republican Party logo during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Peter Merideth, D- ºüÀêÊÓƵ, gives an impassioned speech during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
People listen in the gallery as the House debates a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to debate and vote on the tax bill, it has already passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Chad Perkins, R-Bowling Green, left, Rep. Bill Hardwick, R- Waynesville, center, and Rep. Jim Murphy, R- ºüÀêÊÓƵ County, confer during debate on Wednesday, June 30, 2021. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Sara Walsh, R-Ashland, left, Rep. Nick Schroer, R-St. Charles County, center, and Rep. Mary Elizabeth Coleman, R-Arnold, right, talk during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Raychel Proudie, D-Ferguson, motions to speak during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Mary Elizabeth Coleman, R-Jefferson County, left, Rep. Maggie Nurrenbern, D-Clay County, center, and Rep. Rasheen Aldridge, D- ºüÀêÊÓƵ City, talk during a special session to pass a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com
Rep. Keri Ingle, D-Lee Summit, works on her computer during a debate over a Medicaid tax bill in the House chambers at the Missouri State Capitol Building in Jefferson City on Wednesday, June 30, 2021. The special session was called to pass the Medicaid tax bill, which has passed the Senate. Photo by Colter Peterson, cpeterson@post-dispatch.com