Missouri Press Association
Serving Missouri Newspapers Since 1867
Missouri News Network: Statehouse News for MPA Members
This report is written by Missouri School of Journalism students for publication by MPA member newspapers in print and online.
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The Missouri News Network is back providing coverage of the Missouri General Assembly. All stories this week were published on Wednesday and include reports on proposals to reduce personal and corporate income tax rates, bills that would allow utilities to charge customers based on projected future costs and a rally by abortion rights supporters.
If you have thoughts or questions, contact Fred Anklam at anklamf@missouri.edu.
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Proposed House bills could make major changes to Missouri taxes
By Sterling Sewell, Missouri News Network
JEFFERSON CITY — Missouri House of Representative bills heard by a committee Wednesday could lower the Missouri corporate income tax to zero by 2029 and set a flat income tax rate of 4.7% or lower.
The bills heard by the House Special Committee on Tax Reform have been proposed by freshman representatives who seek to alter the tax system.
The bill proposed by Rep. Jeff Vernetti, R-Camdenton, would phase out the corporate income tax by 1% annually, ending the tax in 2029. Missouri’s 4% corporate rate is lower than all neighboring states. Currently, the only states without corporate income tax are South Dakota and Wyoming.
“Missouri does have a low corporate tax rate, but movements like this will certainly attract more business and will drive the business economy here in the state,” Vernetti said during the hearing.
He argued that the bill might benefit small businesses and believes that it could lower consumer prices as corporate tax rates are often passed onto consumers.
According to the bill’s fiscal note, if the bill were fully implemented it could reduce state general revenue by an estimated $893 million annually.
Committee Vice Chair Rep. John Simmons, R-Washington, pointed out that the potential nine-figure reduction accounts for just under 2% of the FY2024 state budget, and lost revenue in the first year accounts for roughly 0.2% of that budget.
“If we can’t find a 0.2% way to cut the state budget, we got our work to do,” Simmons said.
Jeremy Lafaver, a lobbyist representing Missouri Budget Project — a public policy analysis organization — spoke against the bill, expressing concerns that the easiest ways the legislature might cut funding would be in education.
“If you want to start cutting big chunks of money, eliminating schools, eliminating school districts and cutting back on some of the universities is gonna be an opportunity,” Lafaver said.
He also noted that Wyoming and South Dakota, the two states with no corporate income tax, have not attracted any Fortune 500 companies.
Another bill, proposed by Rep. Christopher Warwick, R-Bolivar, would see Missouri adopt a flat tax rate for all taxable income. The rate level will be either 4.7% across all incomes, or lower, based on tax rates as of 2026.
“This change aims to create a more straightforward and predictable tax environment for individuals and families,” Warwick said in defense of the bill.
The bill would also require the state of Missouri to have the same standard deductions as the federal government, plus an additional $4,000. This $4,000 addition would seek to help those in lower tax brackets to make up for the potential increase in taxes for those brackets from the flat tax, according to Warwick’s testimony.
The bill would also see the repeal of the Missouri Working Families Tax Credit Act. The act provides a credit equal to a certain percentage of a person’s federal earned income credit, according to the Missouri Department of Revenue website.
The federal earned income credit is aimed at low to moderate income workers and families. The Missouri Working Families Tax Credit provides an additional credit equal to a percentage of this credit. In 2023, this percentage was 10% and in 2024 it was 20%.
According to tax credit analysis done by the Missouri Department of Revenue, 452,000 Missourians utilized the Missouri Working Families Tax Credit, redeeming $102 million. This was an increase from the previous financial year which saw 425,000 Missourians utilize the credit with $51 million redeemed.
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Senate committee reviews bills that would modify utility rate increases
By Molly Gibbs, Missouri News Network
JEFFERSON CITY — Advocacy groups voiced opposition to Senate bills that would allow utility rates to be calculated using so-called “future test years” during a committee hearing on Wednesday.
The bills sponsored by Sen. Mike Cierpiot, R-Lee’s Summit, contain multiple provisions to aid utilities. Allowance of future test years is a feature of both bills and was the main point of tension between witnesses testifying for and against the bills.
Cierpiot is the committee chairman, a powerful position that allows him to determine which bills get public hearings. He introduced both bills ahead of testimony and spoke in support of using future test years.
“Utilizing a future period would benefit customers by having all interested parties, including the Public Service Commission, the OPC which is the state consumer advocate and other consumer groups to be involved in evaluating capital projects and expenditures prior to them occurring,” Cierpiot said.
A test year is a 12-month period used in a rate case to decide the cost of service to be included in future utility rates. Currently, Missouri utilities use a historical test year, which bases utility rates on expenses, investments and sales from a recent 12-month period to determine what it will cost to provide service in the future.
Senate bills 4 and 5 would give utility companies the option to use future test years, which base rates on projected expenses and revenue. The Public Service Commission can stop a company from using future test years if it determines it is harmful to the public interest, according to the bills.
Consumer advocacy groups testified against the bills, arguing that consumers would face unjustified rate increases if utility companies were allowed to use future test years.
“Doing a future test year rather than looking at projects that have been done, really is just an incentive for fiscal irresponsibility,” said Jay Hardenbrook, director of advocacy at AARP.
Using historical data ensures that customers are only charged what is completely justified, Hardenbrook said.
Rich Svinland, president of Missouri American Water, testified in favor of the bills.
“Under a future test year scenario, we believe we could do a project faster ... because there is a little more certainty around it,” Svinland said.
Sen. Tracy McCreery, D-Olivette, shared her concern with Svinland that using future test years would lessen financial incentives for utility companies to save money while completing projects.
Svinland argued that incentive is built into the system to “get things done for cheaper.”
Both bills address the scenario in which a company uses less money than they projected using the future test years. Utility companies would be required to return the difference to consumers.
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Abortion-rights supporters rally to protect new rights
By Charlie Dahlgren, Missouri News Network
JEFFERSON CITY — Leaders of the Amendment 3 Coalition gathered at the Missouri State Capitol on Wednesday for a rally to defend reproductive freedom.
Over 200 supporters joined the demonstration by visiting their lawmakers’ offices to petition for the reproductive rights now enshrined in the state’s constitution.
The approval of Amendment 3 in November was not the last step in the continued fight for bodily autonomy, said Mallory Schwarz, executive director of Abortion Action Missouri. Along with similar organizations, Abortion Action Missouri has shifted its focus after the election to preventing laws that would limit the power of the new amendment.
“Changing the constitution was never going to be like flicking a light switch that would immediately change the context or change the environment,” Schwarz said. “It’s going to be a long fight.”
Despite the rights granted by Amendment 3, Republican legislators have voiced plans to restrict the power of the law. By defining language in the bill, such as “the point of fetal vitality” and “extraordinary measures,” they hope to limit the scope of the amendment.
The rally began in the capitol rotunda at 9:30 a.m. with brief instructions given to the attendees about how to approach their lawmakers. Organizers were looking to engage in a respectful dialogue, and to assist with this, attendees were given a script. Participants were then grouped by Senate or Congressional districts and departed for their respective lawmakers’ offices.
Lisa Williams led the constituents of Senate District 15 to the office of Sen. David Gregory, R-Chesterfield, — a potentially contentious meeting due to the senator’s staunch anti-abortion views, said Abortion Action Missouri External Affairs Director Maggie Olivia.
The crowd of 25-or-so packed into Gregory’s waiting room but was only briefly greeted by the senator before he returned to his office. As planned, Gregory’s constituents lined up single-file and handed personalized letters to one of his legislative aids. Although Williams was disappointed by the brief interaction with the senator himself, she was left feeling hopeful.
“It makes me feel good that people care so much and that they are willing to let their representatives know and have a voice,” Williams said.
Rita Fitzjarrell was one of Gregory’s constituents who left a note. In her letter, she shared her life experience having access to reproductive healthcare that, until recently, was easy to obtain. Fitzjarrell said she wants her family and children to have that same level of control over their reproductive lives.
“I just hope that we can get a few stories in front of him and say this is something that is a good for all the people,” Fitzjarrell said.
Schwarz said she aims to stop this backsliding by getting more people involved in the abortion rights coalition. She hopes that through continued action like Wednesday’s Capitol rally, reproductive freedom will continue to make gains — even in a deep-red state such as Missouri.
“As abortion and reproductive health advocates in a hostile state, we know that the fight is never over,” Schwarz said. “The more people we can reach, the more people are with us, but it takes effort.”
Following the office visits, the groups gathered again in the Capitol rotunda and listened to speakers for about 30 minutes.
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House Lounge opens to first tours since 2020
Jackson Cooper, Missouri News Network
JEFFERSON CITY — The House Lounge at the Missouri State Capitol is open to public tours for the first time since before the pandemic.
New Missouri House Speaker Jon Patterson, R-Lee's Summit, announced the reopening Friday. The lounge had been closed to the public since March of 2020 due to COVID-19 concerns.
Now, the space will be open to tours when not in use by House members.
In a news release, Patterson expressed hope that reopening the House Lounge would help visitors feel better connected to the state's history.
“We are proud to showcase the rich history of our state by inviting Missourians and visitors back into the House Lounge,” Patterson said. “As speaker of the house, I want to make state government more accessible to constituents and that starts (with) us.”
The lounge is best known for "A Social History of the State of Missouri," an expansive mural painted by native Missourian Thomas Hart Benton in 1935 and 1936. The mural depicts elements of the state's political, agricultural and social history from European settlement through the early Great Depression.
The mural was deemed by Benton himself as a career-defining piece.
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Krewson has confirmation hearing for UM Board of Curators
By Kat Ramkumar, Missouri News Network
Editor's Note: Krewson's appointment to the UM Board of Curators was unanimously approved Thursday by the Senate.
JEFFERSON CITY — Former St. Louis Mayor Lyda Krewson had a confirmation hearing Wednesday to be formally appointed to the UM System Board of Curators.
Krewson, who has served on an interim basis since last summer, testified in front of the Senate Gubernatorial Appointments Committee.
She was appointed by Gov. Mike Parson in 2024 and was joined on Wednesday by sponsor Sen. Steven Roberts, D-St. Louis.
Roberts had initially blocked Krewson and three others from receiving gubernatorial nominations, but he later clarified that was a lack of communication from the governor’s office.
Krewson has a background in education and previously worked as a certified public assistant at Deloitte and as a CFO for PGAV, a design and planning firm. In 2017, Krewson was elected the first female mayor of St. Louis.
During her hearing, Krewson expressed optimism about and support for two big projects the University of Missouri has undertaken: the MU Research Reactor and the North End Zone expansion.
“There are a lot of exciting things going on there. I’ve served just for a few months as an interim appointee, so I look forward to supporting the administration and the current Board of Curators,” she said.
Krewson shared that her goals of being efficient align with that of the university.
“We need to do things are efficiently as possible,” Krewson said. “The main mission here is to educate young people to follow the workforce and be productive members of our state.”
Interim appointees made while the Missouri General Assembly is not in session are required to undergo a Senate hearing and confirmation the following year in order to continue in their position.
