Budget chairman sees good reason to release funds

To the editor:

I read the fine article by Marc Powers concerning the current status of the state's finances. While most of the article was an accurate, balanced portrayal of the differing views, there was one inaccurate statement. I do not prefer to use the revenue growth that includes federal fiscal relief. The 5.1 percent net revenue growth through October, which economists around the country say can be sustained, is a more accurate representation of where we are in revenue collections. It appears that nearly 75 percent of the federal relief money should be available to assist us in the fiscal year 2005 budget.

The article also made reference to having paid some fiscal year 2002 expenses in fiscal year 2003, making the numbers in fiscal year 2004 not an accurate comparison. I do not believe this is the case. When people receive their paycheck, they are not able to spend their gross amount because there are deductions. Likewise, the state cannot spend its gross but only can spend the net to cover our obligations. Thus when we compare fiscal year 2003 net revenue collections to fiscal year 2004 collections, we are making an apples to apples comparison.

The bottom line is that Missouri is benefiting from the president's tax-relief package. We are seeing economic recovery in many areas. And school funding, at least a good part of it, should be released to relieve some of the financial pressures on our schools.

CARL BEARDEN

Chairman

Budget Committee

House of Representatives

Jefferson City, Mo.