Job Creation and Economic Development

In 2011, one of Senator Schmitt’s job-creating proposals, Senate Bill 19, became the first bill approved by the General Assembly and one of the first bills signed by the governor. This bill dealt with the corporate franchise tax, which is a tax based on a percentage of a company’s assets. Corporations already pay taxes on their earned income as well as Missouri sales and property taxes. The franchise tax is a disincentive that penalized companies for investing in Missouri.

Senator Schmitt’s legislation reduces and ultimately eliminates the heavy burden placed on businesses by this tax. Franchise tax liabilities are now capped at 2010 levels and will be phased out steadily over the next five years. By January 1, 2016, franchise tax liability will be eliminated, providing a much-needed boost to Missouri’s businesses and allowing Missouri to compete more effectively for jobs. While Illinois is raising its taxes on businesses, Missouri is lowering the burden on businesses to give them the ability to expand and to create new jobs to put Missourians back to work. With the elimination of the franchise tax, Missouri will be poised to become a fertile ground for new businesses and allow existing businesses to expand more readily. Companies can now invest in hiring new employees instead of growing government through higher taxes.

Autism Insurance Reform

One in 91 children born today will be diagnosed with autism, but out of the top 10 neurobiological conditions, autism was the only one specifically excluded from insurance coverage. However, thanks to Senator Schmitt’s leadership and dedication, legislation was passed in 2010 leading the way to change.

In 2009, the Senate passed legislation providing for insurance reform, but when time ran out in the House of Representatives, Sen. Schmitt took action, organizing rallies across Missouri, drawing thousands and building unstoppable grassroots support for the legislation – effectively paving the way for its passage. In 2010, Sen. Schmitt’s hard work and passion paid off. House Bill 1311, a dream of so many families before, became a reality with an overwhelming bipartisan vote.

The required insurance coverage will include a physician or psychiatrist’s referral of ABA (Applied Behavioral Analysis) therapy – up to $40,000 per year for those 18 years of age and younger. A cost-of-living adjustment has been included to adjust the cap for therapy services in future years. Actuarial studies estimate the cost of offering this life-changing therapy – often the difference between a child being invited to a birthday party, a dad being able to take his son to a baseball game, a mom being able to take her daughter to a movie, or a family being able to go to a restaurant without having to leave before the meal is over – is an increase in premiums of less than 1%.

Hard-working families across Missouri pay for insurance their entire lives and when their child is diagnosed with autism, coverage will be there when they need it most. Autism insurance reform will allow children on the autism spectrum to reach their full potential and provide real hope and opportunity for thousands of Missouri families and generations of Missouri’s children. For more information, contact the Missouri Dept. of Insurance at their hotline number 1-800-726-7390 or visit their website

Property Tax Reform

Senator Schmitt worked to fulfill his promise to fundamentally reform the property assessment process in St. Louis County with the passage of Senate Joint Resolution 5 and the subsequent Constitutional Amendment passed by voters in November, 2010. The Amendment requires the assessor in St. Louis County to be elected, rather than appointed. Senator Schmitt believes having an independent, elected assessor attacks the problem of unfair property assessments on the front end, ensuring the assessment process is more open, transparent, and – most importantly – accountable to voters. Assessors are elected in more than 100 other counties in the state, including suburban St. Charles County. The State Tax Commission and University of Missouri-St. Louis Public Policy Research Center have pointed out that St. Charles County has the highest assessment accuracy in the state. Senator Schmitt believes that St. Louis County taxpayers deserve the same level of accountability, and the voters overwhelmingly agreed with him at the polls in November 2010.

In 2010, Senator Schmitt successfully amended legislation to include a provision making it easier for local taxpayers to find information online about their reassessment and comparable properties. This amendment provides greater transparency in the property tax assessment process and puts even more power and information in the hands of the taxpayers.

Cracking Down on Fraud and Promoting Transparency

In 2009, Senator Schmitt filed Senate Bill 549 to create the MO HealthNet (Medicaid) Data Transparency Program and successfully amended House Bill 577 to include the landmark legislation.

When HB 577 was signed into law, Missouri became the first state in the nation to require the posting of all Medicaid payments made to providers online, with recipients’ information protected and redacted. Senator Schmitt believes consumers have a right to know the cost and quality of their care, which is why he created this first-of-its-kind web portal allowing all Missourians to see what providers charge for their services with just a click of a mouse.

Posting this data online will also help Missouri crack down on fraud and abuse. Nationwide, outright fraud accounts for as much as 10% of all healthcare spending. That is nearly $200 billion every year. In 2005, the Kansas City Star estimated that fraudulent Medicaid claims could total up to $575 million a year in Missouri – which is $575 million Missouri tax dollars going into the pockets of criminals. This is why Sen. Schmitt fought hard to make Missouri a leader in cracking down on Medicaid fraud with the MO HealthNet Data Transparency Program.

Plus, the information collected can be used to guide public policy. For example, every woman over the age of 40 should have a yearly mammogram. With the database, policymakers may discover that only 40% of women over 40 are receiving mammograms, thus triggering policy changes that encourage outreach awareness.

Standing Up for Local Schools

Senator Schmitt comes from a family of educators and his wife, Jaime, taught in a local school district. Making sure students get a world-class education is one of his top priorities.

In 2010, there was an effort to balance our budget on the backs of “hold harmless” school districts, several of which are located in the 15th District, such as Kirkwood, Parkway, and Lindbergh. Sen. Schmitt led the fight to remove a harmful provision to make sure our local school districts get their fair share of funding and are not treated inequitably.

Common Sense Good Government Reforms

Senator Schmitt sponsored Senate Bill 851, which requires additional notice to the public before local governments can vote on tax increases, eminent domain, tax increment financing, or certain districts and projects receiving public funding. The new law requires four days notice, rather than the previous 24-hour notice. This extended notice allows taxpayers the opportunity to have their voices fully heard on important issues in local government, including their property rights and the use of their tax dollars. Ensuring that taxpayers have sufficient opportunity to participate in their democracy is just one example of the common sense, good government reforms that Eric Schmitt has fought for in the Senate.

Balancing the State Budget

In recent years, Missouri has been forced to face many difficult budgetary decisions. While revenues are beginning to grow, there are still shortfalls that need to be faced by the General Assembly. Because so little of the state’s general revenue dollars are discretionary dollars, the General Assembly is faced with little flexibility as it works to reduce spending.

Some highlights of the Fiscal Year 2012 budget include full funding for the Missouri Rx Program, stable funding for K-12 classrooms, and $150,000 for Parents as Teachers, a critical program for young children. The legislature also worked to increase funding in several areas over the governor’s recommendations, including $10 million for K-12 transportation funding and $12 million for public higher education.

Right-Sizing State Government

The Missouri General Assembly has been working on efforts to consolidate state agencies and to reduce the size and scope of state government. The Missouri Senate opened the process up to the public and received thousands of suggestions on ways to reboot the state government. It is important that legislators think outside of the box and consider every possibility when trying to keep government at the right size.

Legislation that has been passed to reform the way our government works includes: Senate Bill 842, which modifies provisions relating to public assistance programs administered by the state for a total cost-savings of over $24 million; House Bill 1868, which saved $1 million by merging the State Water Patrol with the State Highway Patrol; House Bill 1965, which eliminated the printing of state manuals and statute books for a cost-saving of $1.7 million; and House Bill 1, which modifies the retirement system for new state employees with potential savings of $660 million over its first ten years alone.