BUDGET AX FALLS: AREA LAWMAKERS FEAR CUTS WILL HURT

Several Southeast Missouri legislators said Saturday they are concerned about the impact of budget vetoes and withholdings made by Gov. John Ashcroft. But all agreed the cuts that were made Thursday are necessary to ensure Missouri maintains a balanced budget.

"I am quite concerned about what these cuts will mean in services to people of the state, but I also realize there was no other choice," said Rep. Mary Kasten, R-Cape Girardeau. "Hopefully the economy will pick up and some of the funds that are being withheld can be released."

Kasten, who is a member of the budget committee of the House that helped draft the $9 billion budget for the fiscal year starting Monday, said the General Assembly passed a budget pretty much in line with what Ashcroft had recommended.

"It's just that there has been a slow-up in the whole national economy," Kasten said. She explained that the budget had been based on revenue growth of 3.1 percent, but now it looks like the state tax growth will be just 2.3 percent.

She noted that the revenue growth rate projected for the Fiscal 1992 year is the lowest in about 12 years.

Cuts and withholdings in the budget announced by Ashcroft totaled $212 million. Although education was not cut as much as other state agencies, which averaged 12 percent, higher education was cut 5 percent and elementary and secondary education was subjected to a 3 percent withholding.

For the first time in many years, the school foundation formula will be less than the previous year, dropping about $200 million under the $1.3 billion distributed in Fiscal Year 1991.

"I just didn't think we had overshot the budget for him to make those kinds of cuts," remarked Rep. Dennis Ziegenhorn, D-Sikeston. "I really felt like the economy was coming back to support the budget we had approved, but I also realize the governor has to be fiscally responsible, as we all want to be.

"If there is a revenue shortfall, we have to cut spending," added Ziegenhorn. "We in Missouri balance our budget; we are not the federal government and do not print money. We try to live within our means like all people do."

Rep. David Schwab, R-Jackson, pointed out that the cuts Ashcroft made were from an already tight state budget.

"There wasn't that much of an increase in the budget this year so most things were budgeted at existing levels or less to begin with," said Schwab. "To go back and make additional cuts will definitely affect and hurt programs.

"I am certainly glad that we are required in the state of Missouri to balance our budget and make our cuts before we come to the end of the fiscal year and find we can't balance our budget."

Like Kasten and Ziegenhorn, Schwab also felt the legislature had approved a realistic budget. "I assumed when we passed the budget this year we were pretty close on our figures; hopefully there will not be a need for any additional cuts."

Kasten said from reviewing the higher education cuts, it looked like an effort was made to treat all universities the same. "I think the cuts were done as fairly as possible," she noted.

Two casualties at Southeast Missouri State University were $240,000 for continued planning of a new building for the College of Business and $180,600 for construction of an elevator in the Grauel Building.

Sen. John Dennis, D-Benton, said he was particularly concerned about these cutbacks.

"Both of these projects are badly needed and we'll do everything we can to get them in the budget next year," declared Dennis. "I knew we were running short of money but I sure hate to see him cut some of these areas like mental health and education."

The senator said he fears the state's financial picture may be tight for a while because even after the economy picks up, funds will have to be appropriated to cover capital projects and needs that are being delayed now.

"There's no doubt the loss of some of these services will hurt some people," added Kasten. "It's going to be a tough year; we are really in a budget crunch.

"I'm always fearful when we don't take care of some problems, particularly with youngsters and families at the beginning, then we pay for it on down the road."

The fifth-term representative noted that a budget crunch like Missouri's is not unique. "A lot of other states are having some of the same problems we are and having to make some difficult decisions," said Kasten.

One real problem is that states facing budget crunches are often unable to spend money now on programs that will save them money in the long run, observed Kasten.

"Hopefully some good can come out of all this because it will continue to force us to evaluate every program and job position so that we are getting the most for our money," she said. "This could also lead to better coordination and cooperation between state agencies."