Independent Credit Agencies Say HB 253 Bad Idea
Three leading independent credit rating agencies — Standard & Poor’s, Fitch, and Moody’s — show that House Bill 253 poses serious risk to Missouri’s financial health and long-standing AAA credit rating.
Missouri House Bill 253 was vetoed in June by Governor Jay Nixon, who called the bill “an ill-conceive, financially irresponsible experiment that would inject far-reaching uncertainty into our economy, undermine our state’s fiscal health, and jeopardize basic funding for education and vital public services.”
Governor Nixon’s veto could be overturned when the General Assembly meets on September 11th for its annual veto session. It will take 109 votes in the Missouri House to overturn the Governor’s veto, at which time the bill would move to the Missouri State Senate. In the Senate, 23 votes are needed to officially overturn Governor Nixon’s veto, placing Missouri public education in danger.
“We believe that if the Missouri legislature overrides the governor’s veto [of HB 253] and enacts the legislation, and the federal government passes the Marketplace Fairness Act, it has the potential to result in a significant financial impact to the state, despite requirements for the maintenance of a balanced budget.”
— Standard & Poor’s in its July 24th Report on HB 253
In its August 8th coverage of the House Bill 253 veto, The Ozarks Sentinel said:
“The negative impact of House Bill 253 on schools in the Springfield area would be significant. When fully implemented, the cost each year could be $4.3 million for Springfield schools; $800,000 for Branson schools; and $2 million for Nixa schools. If the Federal Marketplace Fairness Act becomes law, the cost for the current year could be $7.5 million for Springfield schools; $1.3 million for Branson schools; and $3.5 million for Nixa schools.”
To learn what the impact of House Bill 253 would be on your school district, check the Foundation Formula Scenario published by the state.
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Posted on Thu, August 15, 2013
by MOParent filed under