CAPE CHAMBER GIVES BACKING TO PROPOSITION B

Citing the need for educational reform, the board of directors of the Cape Girardeau Chamber of Commerce has endorsed Proposition B.

Missouri voters will decide the fate of the tax-and-reform measure for education in a Nov. 5 election.

Robert Hendrix, president of the chamber of commerce, said Thursday that the 18-member board voiced unanimous support for the measure at its August meeting. But the board's endorsement was not publicly disclosed at that time.

Hendrix said the chamber plans to lobby its members to support Proposition B.

He said, "There was a lot of discussion about it as you can expect because of the taxes involved.

"It was felt by the board that this was one of those things that the bullet had to be bitten. And if we are going to get quality education, we are going to have to make some reforms and put our money where our mouth is," he said.

Hendrix said Proposition B would provide for some important reforms to improve education.

"They (board members) felt that the reforms will be worth it, because they felt this would bring better educated people out of not only high school, but college."

The reforms for elementary and secondary education would include financial incentives to reduce class sizes, additional funding of the Parents As Teachers program, vocational education and other programs, guaranteed high school diplomas, school report cards, alternative teacher certification and increasing the minimum school year from 174 to 177 days.

Reforms for higher education include increased funding of scholarships, expansion of community college services, added funding for building and equipment maintenance and equipment purchases, developing a statewide plan to refine the missions of all public colleges and universities in Missouri, and granting power to the Coordinating Board for Higher Education to eliminate duplicate, unnecessary or inefficient programs on college campuses.

It's estimated Proposition B would initially raise $385 million, with $190 million allocated for elementary and secondary schools and an equal amount for higher education, and $5 million earmarked for job development and training.

The money would come from sales, corporate, cigarette and tobacco taxes, as well as through limiting of state deductions for federal income and Social Security taxes.

"It is going to be a big burden on business," said Hendrix. "But at the same time, it is going to be a burden on everybody."

Hendrix said, "Some of the taxing policies that they've got in there are going to take a chunk out of business."

But he said he doesn't have any estimates on what the tax load would be for businesses. Figures being put out by proponents emphasize what the cost would be for the individual taxpayer as opposed to businesses.

"Businesses don't vote," said Hendrix, "people do." As a result, he said, the emphasis has been on what the measure will cost the individual taxpayers.

The chamber president said the state chamber of commerce has endorsed Proposition B, as has Associated Industries of Missouri, a business group.

Hendrix said he believes the majority of business groups are supporting Proposition B.

"I think they realize the need for the reforms and the additional funds to make the reforms work," said Hendrix.

He added that businessmen are also realists when it comes to taxes. "I don't think we are Pollyanna-ish enough to think this is the last time we are going to have our taxes raised."

Hendrix said he believes at some point the entire state tax structure needs to be overhauled.

"I think what needs to happen eventually is the state needs to sit down and look over the overall tax structure of the state. Missouri is a low tax state compared to most of them you look at.

"One day they will have to look at both corporate and personal taxes. They are going to have to look at sales taxes," said Hendrix, adding that sales taxes are "getting to a point where they are going to have to look at not adding any more."