Battle lines drawn over Missouri tax-cut bill

State Republicans and Democratic Gov. Jay Nixon are preparing for another standoff over a tax cut proposal that could leave the state's education funding hanging in the balance.

Senate Bill 509, sponsored by State Sen. Will Kraus, R-Lee's Summit, would gradually cut individual state income tax rates from 6 percent to 5.5 percent and phase in a 25 percent deduction on business income earned by individuals. It also would require tax brackets to be adjusted annually for inflation.

If that scenario sounds familiar, it's because the debate is nearly identical to that over House Bill 253, which also sought to cut income tax rates gradually. The bill was passed last year before the Missouri General Assembly took its recess in May, but was vetoed by Nixon. The governor spent the summer traveling around the state rallying against the measure when a veto override was threatened. Legislators fell just short of the necessary numbers to override the veto after the House and Senate convened in September.

But proponents of the Senate bill are hopeful a successful override could be mounted this session if Nixon uses his veto pen for the new measure.

The Senate passed the bill 23-9 with Republicans -- including Sens. Wayne Wallingford, R-Cape Girardeau, and Doug Libla, R-Poplar Bluff -- standing strong in their support.

Republicans in the House also stood united, with the bill passing 104-48. Even a few Republicans who voted against House Bill 253 voted "yes" for the new measure, along with local representatives Kent Hampton, R-Malden; Donna Lichtenegger, R-Jackson; Holly Rehder, R-Sikeston; Todd Richardson, R-Poplar Bluff; and Kathy Swan, R-Cape Girardeau.

A sole Democrat, Rep. Jeff Roorda of Barnhart, also voted in favor of the bill.

State Rep. Steve Hodges, D-East Prairie, was absent from the vote. He voted in favor of House Bill 253 last year, but stood with the governor against the veto override, citing concern for cuts to education funding.

Also absent were five GOP lawmakers who could help Republicans reach that 109th vote needed to override the expected veto.

The governor has not announced whether he will veto the bill, but he held a news conference hours after the House approved it, reaffirming his stance against the tax-cutting measure.

"This afternoon, the Missouri House voted to send to my desk a bill that takes $620 million annually from public education and other priorities," he said. "This legislation will get a thorough review over the coming days and weeks -- but it's worth noting that on its face, this year's reckless fiscal experiment looks a lot like last year's reckless fiscal experiment."

Proponents of the bill said Nixon's concerns are exaggerated because the bill contains safeguards: No reduction will go into effect unless the net general revenue collected in the previous fiscal year increases by at least $150 million.

Lichtenegger said in her most recent report to constituents: "You should know that I and other legislators will never allow a bill to affect state revenues in such a way that our elementary and secondary education programs fiscally suffer."

Rehder made similar comments in her Friday report, stating the current House-approved budget will increase K-12 education funding by as much as $278 million, and funding to the state's public universities and community colleges will increase by as much as 3 percent.

Check back with the Southeast Missourian in Monday's edition to see reactions and perspective from local school officials.

srinehart@semissourian.com

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