Bill to tap Rainy Day Fund may be in trouble

JEFFERSON CITY, Mo. -- With barely a word of debate, the House of Representatives on Monday gave first-round approval to raiding the state's reserve fund to balance the budget for the upcoming fiscal year.

However, the vote was an indication the plan will have significant trouble winning final passage.

The bill would take $53 million from the state's Rainy Day Fund to help ensure the state's $19 billion budget for fiscal year 2003, which begins July 1, is balanced as required by the Missouri Constitution.

Since Gov. Bob Holden, a Democrat, first proposed tapping the fund in January, Republicans have criticized the plan as deficit spending. Supporters say the reserves must be used to preserve vital state programs.

State Rep. Tim Green, D-St. Louis, said that when the House worked on the 12 bills that make up the budget last week, it was apparent few lawmakers of either party were in the mood to make deeper cuts.

"As soon as there were cuts, there were people finding ways to spend that money," said Green, the House Budget Committee chairman.

The only remaining options to balance the budget, Green said, are using the Rainy Day Fund or relying on the Senate, which is now working on the budget, to eliminate more programs.

Little discussion

Aside from Green's statements, there was little discussion of the bill. The measure passed on an announced vote of 71-52, with 39 representatives not voting.

On first-round action, only more "yes" votes than "no" votes are required for passage. However, supporters will have to round up 38 more votes to move the bill to the Senate.

In 2000, voters approved a constitutional change that requires two-thirds approval of both legislative chambers to use the Rainy Day Fund. In the House, that means 109 members must endorse the measure, instead of the usual constitutional majority of 82.

Members Southeast Missouri's House delegation followed their parties on Monday's vote, with four Democrats supporting the bill and five Republicans opposing it. Another six area representatives didn't vote.

State Rep. Phillip Britt, D-Kennett, said it is clear the measure is in jeopardy.

"Unless a lot of folks change their votes, we've got a problem," Britt said.

Even with all 87 House Democrats backing the bill, it would still fall short of gaining the needed supermajority without 22 Republican crossovers.

May forego vote

With final passage of the bill doubtful, Britt said the House may forgo a final vote to see if the Republican-controlled Senate can reduce the budget by another $53 million.

"If the Senate finds the cuts, that would be wonderful," Britt said. "If they can't, they are going to have to put pressure on Republicans in the House" to authorize tapping the Rainy Day Fund.

State Rep. Jason Crowell, R-Cape Girardeau, said he and most other Republicans will remain solid in their opposition to raiding the state's savings.

"I don't think that is any way to run a government -- tapping the Rainy Day Fund for continuing operations," Crowell said.

He added that the House "took the easy way out" by passing a budget not truly in balance.

If the fund were used, the money would have to be repaid with interest within three years, beginning in FY 2004, which lawmakers will work on next year.

In his original proposal, Holden suggested using $135 million from the fund to pay for specific programs. Through cuts, the amount needed from the fund was reduced.

The House plan would use the Rainy Day money as an infusion into general revenue, rather than as earmarked spending for certain programs.

mpowers@semissourian.com

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