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NewsBook:  Missouri Government News for the Week of October 31, 2011

The Missouri Supreme Court heard oral arguments in a case over bargaining rights for one St. Louis suburb's police department.

Attorneys for the University City Police Department argued that the police department should control bargaining rights.

This is something that currently is in the hands of University City.

Supreme Court justices said they did not know if they should be making a decision in this case because it is something the legislature should decide.

Both sides of the case now wait for the Court to make a decision.

Get the radio story.

The state still owes the federal government for it's share of FEMA's help in clearing debris in Joplin. State budget director Linda Luebbering said she's not sure how much the state will end up paying. She also says she's unsure how the state will balance the budget.

"We've already done some expenditure restrictions. We announced those in June. That was for a combination of reasons including revenue concerns. Where we end up ultimately is not yet determined," said Luebbering.

The $15 million the state has paid so far isn't close to the final amount the state will eventually pay.

"Our obligation is much higher than that, we just don't know what it is yet," said Luebbering.

All of the money has come out of the state's general fund and Luebbering said it's too early to consider tapping into the state's rainy day fund.

Out of 110 social service workers 40 called in "sick" at the St. Louis office due to under staffing issues.

The Missouri Department of Social Services has yet to give more than a quote about the skipping state workers.

Director of Communications for the Department, Seth Bundy, said “On Tuesday, we had more than 40 staff members at the Choteau office serving any and every client that that came in for services. Our priority continues to be helping struggling families succeed by providing the resources they need as they work towards self sufficiency.”

The Department took severe cuts in its budget and has been consolidating its regional offices.

The DSS handles a variety of programs such as applying for food stamps, children services, Temporary Assistance to Needy Families and a Low Income Home Energy Assistance Program.

The Low Income Home Energy Assistance Program provides aid for families who cannot afford electricity bills, and with winter approaching and lack of staff, this could pose a problem.

More than 200 Family Support Division positions have been unfilled since 2009, according to FOX news.

Over the weekend, groups from Springfield, Kansas City, St. Louis and Kirksville brought up issues occurring from reduced staff and budget cuts to advocacy groups on a video conference in Columbia.

Although Moberly's partnership with the Chinese artificial sucralose Mamtek failed, the city has not given up the effort in developing international businesses.

Moberly Area Economic Development Corporation Vice President David Gaines said they are working on other international projects to help business communities find new places and customers. The non-profit organization brought Mamtek project to Moberly.

"The work on the Mamtek project has been going on around the clock, but so is all the other work," Gaines said. "We didn't stop working just because Mamtek had problems. We keep on talking to people about why it is still a good place to be to do business."

Gaines said Moberly's international partners include the Danish manufacturing Vest Fiber, as well as potential partners from Canada, Korea and Germany.

Early this week, the City Council says in a press release that Moberly won't use the city funds to pay for Mamtek bonds.

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House Speaker Pro Tem Shane Schoeller, R-Willard, proposed a package of election changes that he is calling the Missouri Fair Elections Act. The package includes requiring voters to show photo identification at the polls, creating new commissions to handle redistricting, changes in passing ballot initiatives and ballot language.

Requiring voters to show photo identification at the polls  is legislation that has already been passed by lawmakers, but recent language was vetoed by Governor Nixon.

A February Riverfront Times Editorial says Sen. Tim Green, D-Spanish Lake, and other Democrats suggested newer technology than photo I.D.s - fingerprint or retina scanners for polling places.

But now Schoeller says he has not heard anything about beyond photo identification.

“The conversation has clearly been about photo I.D. for some time...but if they want to make those proposals they are certainly welcome to file them and put them forth too,” he said.

Schoeller's proposal also includes creating new commissions to handle redistricting.

There are currently two redistricting commissions made up of an equal amount of Republicans and Democrats. Schoeller says for some time these two groups have not been able to agree, which sends redistricting decisions to appellate courts.

"The goal we’re trying to fulfill here is to create a commission where we don’t continually have to go to the courts to get a map drawn," he said.

Schoeller says he plans to file his proposal as a bill in the regular session in January.

General Motors announced Thursday it will expand its Wentzville plant, doubling the plant's employment over the next three years.

GM will expand the Wentzville plant after closing down its plant in Shreveport, Louisiana.

Wentzville Mayor Paul Lambi says he believes the expansion will not only create jobs but will have a major effect on the community.

"This could have a billion dollar impact over the next three years in the region. That’s why its such big news. It's not specifically those assembly line jobs, it’s what they create," Lambi said.

The plant will add a second shift of workers and will begin building GM's Colorado midsize pickup.

Wentzville GM Personnel Director Ranae Tallon says the plant has waited nearly two years for the agreement.

"The momentum is still building. Then today with the announcement of the new product, people are excited [and] people are enthusiastic. We're a happy plant," Tallon said.

The expansion will take about fifteen months to complete.

The right of those harmed by doctors to collect high-dollar damages came before the seven justices of the Missouri Supreme Court on Wednesday.

When Ronald Sanders' wife died of brain damage in 2005, he sued.

He sued a whole slew of doctors for wrongful death and medical malpractice, and he dismissed or settled with all but one, neurologist Iftekhar Ahmed. At the end of the trial, the jury awarded Sanders and his daughters nearly $1 million to pay back medical bills as well as $9.2 million in non-economic damages, those that aren't related to medical or monetary costs.

There was just one problem: The doctor's attorneys whipped out a state statute that caps the non-economic damages a jury can award in medical malpractice lawsuits. That statute knocked down Sanders' non-economic awards to $1.2 million; his attorneys responded that the statute was unconstitutional. The case was appealed and cross-appealed to the Missouri Supreme Court.

Judges in the state's high court heard arguments Wednesday from the attorneys on whether the legislature's cap on non-economic damages in medical malpractice lawsuits violates the Missouri Constitution.

The legislature first imposed limits on non-economic damage awards in an effort to hold down the rise in medical malpractice insurance rates.

The attorneys focused on the arguments from the plaintiff's appeal, which said that the reduced damages are unconstitutional because the statute capping the awards denies a legitimate trial by jury and violates the separation of powers between branches of the government.

Gov. Jay Nixon presented eight Missouri law enforcement officers with the Medal of Valor at the state Capitol Wednesday.

Joseph Haman, an officer with the St. Louis Metropolitan Police Department, was one of the award recipients. During a routine traffic stop in May 2010, Haman was shot more than half a dozen times.

"You don't really think about it and once everything happened it was just reacting. I wasn't thinking about anything. I was just trying to take out the situation and save my life", said Haman.

Gov. Nixon said the eight men are "true heroes."

"If you ask any of them about what they did, I'm certain they would say I was just doing my job."

The state governor awards the Medal of Valor annually to firefighters, law enforcement officers and emergy personnel.

Missouri Attorney General Chris Koster and dozens of state attorneys general are requesting $15.8 million in federal funding to fight human and sex trafficking.

Deputy Attorney General Joe Dandurand says Missouri’s central location makes the state vulnerable to human and sex trafficking.

"Missouri is an easy place for this to be a breeding ground, the St. Louis and Kansas City areas especially with the major interstates that go through them," Dandurand said.

If the U.S. House and Senate Appropriations Committee accepts the request, the Department of Justice will distribute funds to federal task forces across the country to aid anti-slavery programs and victim services.

A Missouri group is challenging a petition, originally proposed by a controversial conservative billionaire, which would eliminate the state's income tax and raise sales taxes.

Leaders from the organization, known as the "Coalition for Missouri's Future," said the end of the state's income tax would create increased hardships for Missourians--accusing the petition's main backer, billionaire Rex Sinquefield, of protecting personal interests.

However, Travis Brown, a lobbyist in Jefferson City on behalf of the Sinquefield-funded group "Let Voters Decide," argued the end of a state-wide income tax will lead to roughly $3.5 billion in revenue for Missouri.

As officials in Missouri rid the state of its methamphetamines, another- and some say more dangerous- drug has traveled to the forefront: heroin.

According to the Missouri State Highway Patrol, meth labs in Missouri have decreased from 1,960 labs in 2010 to 1,112 in 2011. However, almost 2,000 state residents are now entering Missouri drug rehab for heroin addiction every year.

"We are seeing the same trend with this heroin as we did with the meth," Detective Corey Mitchell of the Poplar Bluff police department said. "Every time we step up enforcement for one illicit drug and it declines, another illicit drug will take its place. It's predominantly in the major metropolitan areas on the east and west coast and it's slowly working its way into the center of the United States."

Mitchell said his department has seen 20 heroin cases this year and the age group varies from teenagers to adults in their 40s and 50s. This new heroin replaces the stigma of "shooting up" with easier forms such as inhalants or pills, attracting a younger demographic.

The effects of heroin remain in the body for one to three hours. After this time, the user goes into a violent withdrawal period, vomiting and shaking for up to five hours. Mitchell said the fear of withdrawal side effects is why heroin has been in such high demand.

To stop this possible epidemic, Mitchell said Poplar Bluff police department's first step is public awareness, primarily the education of parents and teenagers. Mitchell said the department also has ongoing investigations and are working with the FBI to find people and make arrests.

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The American Council for an Energy-Efficient Economy ranked Missouri as one of the worst states in energy efficiency.

Ameren Missouri Vice President Warren Wood said the study is beneficial in raising an awareness. However, Wood also said efficiency rates were not enough to represent the state's performance in energy space.

"You are highlighting one piece of the puzzle, and really if you want to talk about the entire energy space, you need to look broader than just efficiency rates," Wood said.

Ameren Missouri did a similar study on energy efficiency in January 2010. The two studies differ in several areas.

Wood said they were looking at the state's potential and progress.

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House Speaker Steve Tilley wrote a letter asking State Auditor Tom Schwiech to audit the city of Moberly, which is now facing a $40 million debt after Mamtek failed to pay bondholders.

Tilley said that action must be taken immediately to see what other projects have failed, besides Mamtek, and what the cost to the taxpayers will be.

The audit can only take place if a petition is signed by Moberly residents or if the governor gives his approval.

But Scott Holste, Gov. Jay Nixon's spokesman, refused to say what the governor's plan of action will be.

"I don't even know that we've received the speaker's letter yet -- I think we've read about it. But we just don't have a comment on it," Holste said.

Schweich has not issued a response to the letter either.

Attorneys for Democratic Gov. Jay Nixon and Republican Auditor Tom Schweich faced off in court Monday in the auditor's challenge to Nixon's spending cuts to the legislature's budget.

Cole County Circuit Judge Jon Beetem didn't immediate rule on the case after hearing the arguments, The Associated Press reported.

Nixon's attorneys said Nixon is authorized to make the cuts under a section of the state constitution; Schweich's attorneys said the governor is only allowed to reduce expenditures when actual revenues fall below projections, the AP reported. Nixon's attorneys said the cuts are temporary; Schweich's said they're permanent, the AP said.

Over the summer, Nixon pulled funding from the General Assembly's approved budget and reallocated it for disaster relief in areas such as Joplin.

Schweich audited the action and contended that Nixon has no constitutional authority to withhold funds from the budget regardless of unforeseen emergencies. He then filed the lawsuit against Nixon on Aug. 26, charging that the governor violated the state constitution.

Last Week

At the Missouri Department of Health and Senior Services, state health officials met behind closed doors and refused any and all requests from the media, about the E. coli outbreak that has hospitalized at least nine people in the St. Louis metro area.

This rare strain of E. coli is being called "one of the top three most serious strains," by St. Louis County Health Department Spokesman John Shelton.

At least 22 people have been sickened by the E. coli virus - 16 of them in St. Louis County.

Still, state health officials refused to talk about the virus facing St. Louis - except for a press release that says the department is "dispatching additional investigators as more food borne illness cases are reported." The press release also said scientists from the Federal Center for Disease Control and Prevention will be arriving in the area by the end of the day Saturday.

The Federal Center for Disease Control and Prevention, or CDC, is sending scientists to St. Louis to deal with the E. coli outbreak in the area.

A press release from the Missouri Department of Health and Senior Services says the scientists will arrive within the next 48 hours. The release also says the state has begun testing 16 specimens reported to contain E. coli.

Health officials urge anyone who is experiencing gastrointestinal symptoms, including sever stomach cramps, diarrhea or nausea, should seek medical attention.

The Missouri National Guard has worked aggressively since 9/11 to improve its suicide prevention and employment programs for its 11,000 deployed troops.

Twenty-nine Missouri National Guard members have committed suicide out of the 11,000 deployed in Iraq and Afghanistan since 9/11. To improve suicide prevention, the Missouri Guard is focusing on the education of the troops' families and friends on the signs and symptoms of post-traumatic stress disorder and depression. Missouri National Guard Lt. John Quin said the Missouri Guard also has a suicide prevention office and marital and other relationship programs.

A recent study shows 11.7 percent of 9/11 veterans are unemployed and the Missouri National Guard is adjusting programs to help them. To better employment rates, the Missouri National Guard offers two programs to ease the transition from deployment to civilian life. One program created by Gov. Jay Nixon in 2010 helps veterans find jobs; the other program aids troops with resume-writing and interview training.

Missouri's House Speaker Steve Tilley, R-Perryville, announced on Thursday [Oct. 27] the creation of an interim committee to investigate the failed Mamtek investment in Moberly that had been promoted by the state Department of Economic Development.

The facility being built by the Chinese company has been abandoned, and the company failed to meet its first round of bond issue payment obligations, leaving the town of Moberly potentially owing nearly $40 million to bondholders.

The House Interim Committee on Government Oversight and Accountability is to conduct an independent investigation into Mamtek's default while a Senate committee has been looking into the same situation since Oct. 6.

The chairman of the House committee, Jay Barnes, R-Jefferson City, said members will explore from the minute Mamtek made contact with someone in the state government until now.

"We want to know everything that happened in between and to figure out if something went wrong, if there was something that could have been avoided, and if so, figure out how we avoid that happening ever again," Barnes said.

The committee will ask for documents from the Department of Economic Development related to Mamtek and its contact with the state of Missouri. He said the committee would seek subpoenas if it does not get the documents.

A few weeks earlier, a  into the Mamtek situation.

The chair of the Senate committee's investigation, Sen. Jim Lembke, R-St. Louis County, said his committee is still waiting on receiving documents it has requested. Lembke said the committee might receive the documents next week.

Barnes said the House committee might schedule a hearing in mid-November.

The St. Louis County Health Department reported 14 cases of E. coli in the St. Louis area. The Health Department spokesman, John Shelton, told Missouri Digital News, "There are more than 700 strains of E. coli and this is one of the top three most serious strains."

"We are continuing our investigation and waiting for test results and lab results and conducting interviews with perspective victims and patients," said Shelton.

Shelton said the Health Department is not sure where the E. coli strain is coming from, but the Department is continuing to investigate the cause.

Symptoms of this E. coli include severe dehydration; diarrhea, kidney damage.

Shelton said one likely cause is from meat and some produce in supermarkets.

According to the National Centers for Disease Control an estimated 70,000 people in the U.S. become ill each year from E. Coli 0157-H7.

 

Governor Nixon closed a trade agreement with China Wednesday that would increase Missouri exports by $100 million of over the next three years. In addition, officials from Hebei, Missouri’s sister province, have agreed to work with the Missouri Department of Economic Development to manage $100 million in investments from Chinese businesses.

This week, Nixon has been in China leading a delegation of Missouri business and agricultural leaders to negotiate with China on trade deals. On Monday, Nixon announced a $4.4 billion export agreement with the China Council for the Promotion of International Trade.

Nixon said in a press release, "this trade mission is delivering tangible results for Missouri businesses and helping them open new doors in the Chinese market. We're also laying a solid foundation for continued growth in the years to come."

The next stop for Nixon and his delegation is Shanghai.

Top Democratic legislative leaders challenged Republicans in the statehouse on Wednesday to get serious about passing legislation to create new jobs.

Republicans, who have made up a majority of both chambers since the November 2010 election, came into office last year fired up about creating jobs in Missouri. However, they have yet to facilitate a jobs plan making it to the governor's desk in either the regular or special legislatives sessions this year.

"The Republican-controlled General Assembly lost yet another chance to address the most important issue facing the state, and GOP legislative leaders lost their credibility," said Democratic Floor Leader Rep. Mike Talboy, D-Jackson County.

More than 14 Democratic lawmakers called on the Republicans to begin passing bills when the regular legislative session begins in January.

The Missouri National Guard will see changes in troop deployment following President Barack Obama's announcement that he plans to withdraw all troops from Iraq.

Currently, the Missouri National Guard doesn't have any soldiers stationed in Iraq, but a Black Hawk helicopter unit had planned on deploying there this December.

The unit, Company C 1st Battalion 106th Aviation Regiment, will still be deployed. But

public affairs officer for the Missouri National Guard, Maj. Tammy Spicer, said her office doesn't know yet where the unit will go.

According to Spicer, the Missouri National Guard has almost 1,000 soldiers and airmen stationed in Afghanistan, Egypt and Qatar.

At the same time the Missouri legislators killed the plan to encourage trade with China from Lambert-St. Louis International Airport, a St. Louis-based coal company announced its plan of expanding its trade with China and other countries.

The world's largest private-sector coal producer, Peabody Energy Corporation, will become the only acquirer of Australia's major coal supplier, Macarthur Coal.

The acquisition deal came after steelmaker ArcelorMittal pulled out of its partnership with Peabody to buy the Australian mining company.

Although Peabody's executives were not available for interviews, its chief executive officer Gregory Boyce said in an announcement that the acquisition will give the company access to the highest growth coal markets to serve increasing demand for coal in the Asia-Pacific region.

Boyce also said in the announcement the investment continues the company's global market focus and increases profits made from international assets.

The company said it would increase the offer to 16.25 Australian dollars per share if it could secure 90 percent of Macarthur's stock by Nov. 11, though it is possible the deadline could be extended. The investment is only a midway point in the company's plan.

According to the announcement, the company has built a relationship with a coal company in Mongolia to market coal in China and the Asia-Pacific region. The company also plans to develop a mine in the Xinjiang Province in China.

One month after Missouri lawmakers stopped an agency from implementing federal health care in Missouri, that same agency will meet again ... to discuss federal implementation.

One member of the Missouri Health Insurance Pool confirmed the board of directors for the group will meet Thursday to discuss a federal health care exchange.

State Sen. Rob Schaaf, R-St. Joseph, said the board should not accept these grants because it is out of their hands.

"It is beyond their scope, and they should not be doing that," Schaaf said.

Schaaf said the Senate would most likely stop an exchange from taking place.

"There's probably enough will in the Senate to block any legislation that would back the exchange," Schaaf said.

One month ago, lawmakers rushed to a Missouri Health Insurance Pool board meeting to stop a vote that would accept $21 million in federal grants to set up an exchange to implement President Barack Obama's federal health care plan in Missouri.

The differences between Missouri House of Representatives and Senate have finally brought the major economic development bill lawmakers were assigned to pass and the special session to an end.

Only two senators were in session Tuesday: Senate President Pro Tem Rob Mayer, R-Dexter, and Senate Majority Floor Leader Tom Dempsey, R-St. Charles. The entire session lasted less than a minute.

The tax credit reform that Gov. Jay Nixon said was "essential" to the state didn't pass, even though legislators said the bill was a sure thing to pass in July. Mayer said the biggest stake into the heart of the bill was the "irreconcilable" differences between the Republican-controlled House and Senate.

"The crux of the problem or the issue is sunsets and seven-year sunsets," Mayer said after adjourning the Senate.

The House did not want termination dates on tax credits because representatives thought they gave the Senate too much power. The Senate said there was no chance of a bill passing without those sunsets. The proposed bill would have reduced Missouri's existing tax credits, but would have added tax incentives for a China Hub at Lambert-St. Louis International Airport, amateur sports events, computer data centers and other businesses. 

Mayer said Missouri lawmakers will take another look at those issues during the regular session, which starts in January. Although the House still has a technical session scheduled and hasn't permanently adjourned yet, it couldn't pass the bill even if it wanted to because the Senate has physical custody of the bill. 

  Missouri governor signs intent to export $4.4 billion of goods to China 10/24/2011

Missouri Gov. Jay Nixon announced on Monday a deal with Chinese officials to "aggressively pursue and expedite the completion of export transactions to the People's Republic of China" totaling $4.4 billion, according to the official document. The statement of intent commits the Missouri Department of Economic Development and the China Council for the Promotion of International Trade to working together in order to determine what specific trade and investment activities will take place.

The document outlines several obligations, including exchanging information and facilitating "business matchmaking services," and to "generally advance the promotion of trade and investment between the state of Missouri and the People's Republic of China."

Nixon, who's currently in Beijing, said he closed the deal during his trip despite concerns voiced by the Chinese regarding the legislature's failure to agree on the St. Louis trade hub.

"The topic [of the China hub] came up a couple of times but not as a centerpiece of any of the agreements we were involved with," Nixon said.

The China hub bill, which Nixon included in his call for the special session, created incentives to encourage an international trade hub at Lambert-St. Louis International Airport. The bill has made little progress but was previously touted by Nixon as something that would greatly encourage expanded trade with China.

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