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Nixon says he'll order layoffs over partial funding for Division of Motor Vehicles

This article first appeared in the St. Louis Beacon: Gov. Jay Nixon announced Wednesday that he would reduce staff and services at the Division of Motor Vehicles if the General Assembly passes a budget funding two-thirds of its fiscal year budget.

But the chairman of the Senate Appropriations Committee said such a move is unnecessary -- and added that the legislature needs to pursue its plan to  force the agency to change how it issues driver's licenses.

Earlier this week, budget negotiators agreed to a version of the state's 2014 fiscal year budget thatincludes only eight months worth of funding for the Division of Motor Vehicles. That decision reflects Republican antagonism over the new method in which the Department of Revenue issues driver's licenses.

House Budget Committee Chairman Rick Stream, R-Kirkwood, earlier told reportersthat budget negotiators planned for the money to cover the division's costs through February. Stream said that whether the department would get money later for the rest of the fiscal year would depend on "whether (they) change their policy of scanning and storing source documents for driver's license applicants."

But at a quickly arranged press conference, Nixon called the move an "irresponsible tactic of attempting to fund government in a piecemeal fashion."He went onto say that the tactic "is not the way we have done business in the past and is not the way we will do business going forward."

The governor's office has noted that the General Assembly is required by the state constitution to deliver a full budget for the coming fiscal year (FY2014) by Friday. The governor can accept or veto any part of the budget but cannot add money that has not been appropriated by legislators.

Nixon went on to say that if the General Assembly passes a budget that includes these cuts by the conference committee, "they leave me no choice:  I will reduce staff and services accordingly -- including making the necessary layoffs – effective July 1.

"The unique action taken by the legislature this week would undermine our strong budgetary framework, and would introduce unnecessary and dangerous levels of uncertainty into the historical budget process practiced by governors and legislatures for decades," Nixon said.

After reading the statement, Nixon refused to take any questions from reporters. 

In response to Nixon's statement, Senate Appropriations Chairman Kurt Schaefer, R-Columbia, said that layoffs were "absolutely unnecessary."

"There is absolutely no reason for the governor to lay off," Schaefer said. "If he wants to do that, there's nothing I can do about it. That's his call. It's absolutely unnecessary and I would ask you to ask the governor why he believes that necessary."

Schaefer added, "Keep in mind the governor started this train on the tracks -- and I guess now he wants to deflect from that.

"As far as the general revenue in the operating budget, we gave them a full eight-month operating budget," said Schaefer, noting that some of the federal money for biometric (photo) research was also eliminated.

"And we will come back and do a supplemental when we come back in January, provided they're on the right track and the governor is not doing the illegal things with the Department of Revenue. We made it very clear we would fund the rest of the budget for the rest of the year."

The Department of Revenue announced last year that it would change the way it issues driver's licenses to save money and improve security. Instead of fee offices issuing the licenses directly, Missourians would receive licenses in the mail.

For several years, Missourians have had to provide certain documents -- such as a birth certificate or passport -- to obtain a driver's license.  The furor arose a few months ago when the department began scanning the personal documents and keeping copies in a secure statewide database.

But the controversy arose when some gun owners balked because the retained documents initially included concealed-carry permits, which the bearers often add as an “endorsement’’ on their driver’s license.

At least one lawsuit has been filed challenging the practice of scanning and retaining the concealed-carry permits. Republicans got further incensed when they learned that the state’s Highway Patrol had allowed federal investigators to look at the database as part of an anti-fraud investigation.

Nixon has ordered that concealed-carry permits no longer be scanned, and Department of Revenue chief Brian Long recently stepped down. But the governor has defended most of the department’s practices regarding driver’s licenses, including retaining copies of other personal documents, saying they’re in line with efforts to improve security and prevent fraud.

Schaefer is seeking to force the Department of Revenue to revert to the old way of issuing driver's licenses over the counter at fee offices. 

The Department of Revenue has said that it would cost the state at least $1.4 million more each year to return to over-the-counter driver's licenses because new equipment would be required at each of the fee offices.  The licenses now are processed by a firm in Georgia with the special equipment.

Asked if the department would have to go back to the old way of issuing driver's licenses to receive a full year's funding, Schaefer replied, "Yes, absolutely."

"At a bare minimum we've told them you have to go back and comply with the Administrative Procedure Act," Schaefer said. "[That is] promulgate a rule, put it in the state register, tell you all in the media and the public this is what we're doing, we'll go through the notice and comment period and then go forward. They still haven't done that. As we sit here three months later, as this 'can of worms' was opened when we found out what they were doing, they're still doing it. They're still violating state law as we sit here today."

If the agency doesn't change course, Schaefer said, "We would give them no more money and you would probably see a legislative change to change those responsibilities to some other agency or entity that could follow the law in the state of Missouri.

"There is absolutely no reason for the governor to lay anyone off," Schaefer said. "If chooses to do that, that's solely his own choosing."

OA and House continue war of words

Meanwhile, Nixon's Department of Administration continued its sparring match with the Missouri House over access to an online database containing the list of Missourians with concealed weapons permits.

Nixon's administration last weekpointed to almost two dozen improper attempts in recent days by someone in the state House to access the online database where the scanned copies are stored.

Jones told reporters earlier this week that the computer attempts -- 23, according to one count -- were made with his knowledge to determine whether the database had adequate protections preventing access. The computer attempts were unsuccessful.

The Department of Administration issued an open records request to Jones, Information of House Services Rich Beckwith and House Clerk Adam Crumbliss for "any and all House firewall logs, DHCP logs, workstation logs and any other computer logs for May 2, 2013, during the time period 9:30 a.m. to 10:30 a.m."

On Wednesday afternoon, Department of Administration director Doug Nelson told reporters that the House had denied open records request. In response to OA's request, which had been provided to reporters, Crumbliss said the request "violates the legislative privilege embodied" in an amendment to the Missouri Constitution.

That amendment states that lawmakers "in all cases except treason, felony, or breach of the peace, be privileged from arrest during the session of the general assembly, and for the fifteen days next before the commencement and after the termination of each session; and they shall not be questioned for any speech or debate in either house in any other place."

"Even if the Missouri Constitution did not privilege legislative investigations into your agency, it is our belief that the above requested information cannot be considered a 'record,'" Crumbliss wrote. "Furthermore, even it were a 'record,' I am not providing you with such 'records' requested on this matter pursuant, but not limited, to one of the exceptions in Missouri's Sunshine law [related to information about computer networks]."

Nelson told reporters at a press conference that the exemptions cited were "unsatisfactory" and "troubling."

"It is time for the House to provide them to the public," Nelson said. "These are open records. And the public -- and the press -- have the right to access them so that the facts in this matter can be ascertained."

Meanwhile, Jones announced that former U.S. Attorney Todd Graves was appointed to serve as general counsel to a bipartisan committee looking into the Department of Revenue controversy.

Jones said in a statement that Graves -- the brother of U.S. Rep. Sam Graves, R-Tarkio -- is "one of the most highly-respected attorneys and former law enforcement officials in Missouri, and I know that he will be a tremendous asset to the Bipartisan Investigative Committee on Privacy Protection as they work to find answers about Department of Revenue policies which have placed Missourians’ private information at risk."

"I know that his advice will be invaluable as we work to hold those responsible accountable and recommend solutions which will help prevent another situation like this from ever taking place," Jones said.

Beacon reporter Jo Mannies contributed to this story.

Jason is the politics correspondent for St. Louis Public Radio.