GOP urges governor to sign budget

JEFFERSON CITY, Mo. -- Praising themselves for "making the tough choices," Republican legislative leaders on Friday urged Democratic Gov. Bob Holden to sign a nearly $19 billion budget that cuts spending on schools and social services.

The Missouri Legislature gave final approval to the state budget on a series of largely party-line votes Thursday and Friday. Republicans proclaimed the budget balanced while acknowledging it needed $150 million to $200 million in additional revenue to fulfill spending promises.

Democratic legislative leaders denounced the cuts as drastic and expressed hope that Holden would veto the budget and summon lawmakers back for a special session.

Holden, in an interview Thursday, stopped short of threatening a veto but criticized the deep cuts to education and health care.

His budget director, Linda Luebbering, said Friday that the legislature's budget could be as much as $500 million short unless lawmakers come up with more revenue and savings before they adjourn next Friday.

Holden's proposed budget would have spent about $330 million more than lawmakers ultimately settled upon for the 2004 fiscal year, which starts July 1. He wanted to avoid cuts by asking voters to raise taxes on tobacco products, casinos and wealthier Missourians.

But most of Holden's tax ideas have received little to no debate in the Republican-led legislature. Republicans said voters registered their preferences last year by defeating three tax increases.

"We made the tough choices not to go out and take more money from taxpayers," said House Speaker Catherine Hanaway, R-Warson Woods.

Those budget choices include a $163 million reduction in basic state aid to Missouri's 524 public school districts and a $52 million reduction in state funding for colleges and universities -- moves that Democrats said would result in teacher layoffs and tuition increases.

Legislative budget writers also chose to eliminate about 13,000 low-income parents from the state's Medicaid program -- a cost-saving move necessitated partly by a $143 million increase in other Medicaid coverage, primarily for the low-income elderly and disabled.

Republican leaders who urged Holden to sign the budget were joined by Democratic Sen. Wayne Goode of St. Louis, a 40-year legislative veteran and budget expert.

"I would have liked to have more revenues," Goode said. But "the budget came together in a way that minimized to the greatest extent possible much of the hurt that is inherent in a budget with this great of a shortfall."

Vetoing the budget and calling a special session would accomplish little, he said.

"The budget we've sent the governor is about the best we could have done under the circumstances," Goode said. "I don't think the circumstances will change much if there is a special session."

Other Democrats disagreed.

Senate Minority Leader Ken Jacob said Holden deserved to have lawmakers give more consideration to his revenue plan -- and Missourians deserved a chance to choose between taxes and spending cuts.

"These cuts have been so drastic that it would have been only fair to give them a choice," said Jacob, of Columbia, expressing his preference for a budget veto.

Holden spokeswoman Mary Still described the cuts as "too deep, especially in education and vital human services."

Unaccounted-for drop

Luebbering said the budget fails to account for an unexpected drop in April tax revenue, which will result in a lower starting bank balance for the next budget.

Among Holden's original fund-raising proposals for public schools were higher taxes on casinos and a repeal of the state's unique loss limit for gamblers.

Senate Majority Floor Leader Michael Gibbons, R-Kirkwood, said he was committed to giving the proposal some debate time in the final week, "but it may not be long." Hanaway said it was "very improbable that there will be any debate time" on the casino proposals in the House.

Hanaway said the legislature had come up with enough ways to raise money through its own proposals.

Part of the GOP package expected to be debated next week would offer overdue taxpayers a second chance to pay up without penalties and interest -- a program that worked so well last year that Republicans want to give it another try.

The budget also counts on raising money from a retirement incentive plan for state employees; the extension of a tax on pharmacies; and threats to deny state jobs, professional licenses or corporate franchises to those who don't pay their taxes.