CARNAHAN FLOOD PLAN CRESTS WITYH LEGISLATORS

JEFFERSON CITY -- A legislative package proposed by Gov. Mel Carnahan for members of the General Assembly to consider in trying to deal with flood damages across Missouri was well received by area legislators Wednesday afternoon.

"It seems like an easy package for us to get behind and should have near unanimous support," said Rep. Larry Thomason, D-Kennett, the House majority whip. "I don't see any controversy there."

"I'm very relieved we don't have to raise taxes," added Rep. Mary Kasten, R-Cape Girardeau. "I think everybody can live with it.

"The whole package is very good. There are no controversial areas."

Kasten, who served on the House and Senate Budget committees' joint subcommittee on flood relief, said she was pleased the governor took many of its recommendations into consideration.

The House budget committee will hold a hearing at 8 this morning to consider the parts of Carnahan's package that will require appropriations.

Carnaham outlined his plan Wednesday afternoon before a joint session of the Missouri House and Senate that began a special session called by the governor.

Lawmakers were in Jefferson City already for the annual veto session. That session will conclude this morning without any serious override attempts on the six bills the governor vetoed from the 1993 session.

Some of the controversial proposals floated several weeks ago by Carnahan and some legislators are not part of the package because the state share of flood damage costs will be less than once thought.

Carnahan's staff worked through the night to get a new package ready for Wednesday's speech after receiving word on Tuesday that the federal government will pay 90 percent of the damages in Missouri.

The traditional share is 75 percent, with local governments paying 15 percent and state governments 10 percent for disaster relief.

With a 75 percent share, Carnahan had said the state would probably have to consider a tax increase, approval of a bond issue and possibly moving up the effective dates of two 2-cent gas increases scheduled to begin in 1994 and 1996.

Carnahan explained that the state's share will take $16 million from general revenue sources. That money will come from the Rainy Day Fund, which contains $27-30 million and is designated for emergencies.

"I have proposed a specific plan to pay these costs, a plan that does not require a tax increase and does not require an acceleration of previously scheduled taxes," the governor said.

"It is clear we can pay these costs out of existing revenues and without existing taxes, and that is what I am calling on you to do."

Rep. Herb Fallert, D-Ste. Genevieve, praised Carnahan for his persistent efforts that led to the decision by the federal government to pay 90 percent of flood relief costs. "All the groundwork the governor did with the federal officials is a big deal and means a lot of savings for the state and local governments," Fallert said.

His district includes Perry and Ste. Genevieve counties, which were especially hard-hit by the flooding. "What this all means is that many cities won't be bankrupt because of the flood," said Fallert.

For example, Fallert said some estimates of flood damage at Ste. Genevieve have been put at $10 million. If the federal share was just 75 percent, the city would need to come up with $1.5 million and the state $1 million.

Now both entities need $500,000. "This is about as good a deal as we can expect," said Fallert.

The state facility hardest hit by flooding was the Renz Correctional Facility for Women near Jefferson City. Because of the damage from this flood an past floods, the prison will be relocated.

Carnahan proposed that the legislature approve supplemental funding to cover the cost of housing the prisoners elsewhere temporarily, and also appropriate $750,000 to begin studying the size, location and needs for a new permanent facility.

Carnahan also announced that he would create a task force by executive order "to work through the thorny issues of flood plain management" and to help minimize the risk of future devastations.

"The purpose of this group is to recommend policies on levee and highway replacement and to make timely suggestions for long-range policy," the governor explained.

He also called on legislators to adopt a resolution supporting his request that the federal government waive the five-day waiting period required of people who bought flood insurance just prior to the event.

Several area legislators said they were pleased that Carnahan had abandoned plans to merge the Rainy Day and Cash Reserve funds. "I was a little leery of meshing those funds," Kasten said.

Thomason said there is some merit to merging the funds, which would require a vote of the people as a constitutional amendment. He said it likely will be proposed during the regular session next year because a special election would cost $2 million.

Rep. Dennis Ziegenhorn, D-Sikeston, praised Carnahan for not proposing a tax hike. "These kinds of problems are what the Rainy Day fund are set up for. This is the way to go. People don't want any new taxes."

He joined several of his colleagues in praising the governor's call for not rebuilding state facilities in flood-prone areas.

Rep. Gene Copeland, D-New Madrid, predicted fast action on the package. "There is nothing controversial, especially with the tax increase out," Copeland said. "There should be no real opposition. This is just more of a technicality."

Rep. David Schwab, R-Jackson, said he wants to be sure Rainy Day funds are replaced as soon as possible so there will be money ready for future emergencies.

A longtime advocate of the fund, Schwab pointed out that it was in place for several years before it was funded.

It was established during a 1989 special session necessitated by a Supreme Court ruling requiring the state to make income tax refunds to retired employees. Schwab said House Republicans tacked on an amendment requiring that excess funds from the temporary tax they enacted go to the Rainy Day Fund.

Last year, that surplus revenue was put in the fund. Schwab expressed support for the overall plan. "I think everybody can live with this whole package. It is very good, with no real controversial areas," Schwab said.

Carnahan told legislators that he felt the difficult times caused by the flood had brought the best out in Missourians. "As destructive as these times have been, they have given us a rare opportunity to learn a great deal about ourselves and human nature.

"A great many of Missouri's citizens are hurting as a result of this disaster. It is our job to help them rebuild their lives and livelihoods," he said.