GENERAL ASSEMBLY WRAPS UP SESSION THIS WEEK; DENNIS: MUCH WORK REMAINS TO BE DONE

JEFFERSON CITY - With the clock winding down on his final legislative session, Sen. John Dennis said late last week that lawmakers will have to deal with worker's compensation reform and a new school foundation formula before adjournment.

The Senate spent last week handling a backlog of bills and had several late night sessions in an effort to get caught up.

Both worker's compensation and the foundation formula have contributed to the slow pace in the Senate. Dennis said, "The two issues have us all tied up."

In between, senators worked Thursday to give final passage to the fiscal 1993 budget of $10.2 billion, which by law must be on the desk of Gov. John Ashcroft by today.

Premiums for worker's compensation insurance have increased 38 percent in the last year and another increase of 15 to 20 percent is projected for this year. Many businesses have warned that they may go under without some relief. Others have said that increased costs of worker's compensation have kept them from hiring additional employees.

"We've got to do something about worker's comp costs this year," said Dennis. "Only the lawyers seem to be getting rich on it."

If a bill fails to win approval by the May 15 adjournment, Dennis said some senators plan to ask the governor to call a special session to deal with the issue.

Dennis said he doubts Ashcroft would call a special session if lawmakers fail to act. He said he was optimistic a bill will pass. "Something absolutely has to be done this session," he said.

The House passed a worker's compensation bill on April 13 and a Senate version is on the informal calendar. A substitute Senate bill is being drafted and may be considered Sunday night when senators are scheduled to return for the final week of work.

A final bill will be ironed out in a House-Senate conference committee.

As for the school foundation formula, Dennis said there are three or four versions floating around, including a new plan offered this week. Dennis said he hopes the better parts of each proposal can be merged into a final bill.

Several weeks ago the House also passed a new foundation formula bill. It included an increase in funding for the formula through a hike in the state corporate income tax and capping the amount of federal income tax that can be deducted on state income tax forms.

Dennis said he agrees that additional funding is necessary to make a new school foundation formula work, but was unsure what kind of revenue source might be used in the final bill.

"I know we need additional funding for the formula, but I'm not sure what direction it will take," said Dennis.

The budget approved Thursday by the General Assembly included just $9 million over what was actually spent through the foundation formula in this fiscal year.

Dennis, who is not seeking re-election, is retiring after 16 years in the Senate. Although the session ends this week, Dennis will continue as a member of the Missouri Senate until early next year.