Gov. Holden signs $18.9 billion state budget plan

JEFFERSON CITY, Mo. -- Gov. Bob Holden signed an $18.9 billion operating budget for Missouri government into law Wednesday, but complained it doesn't do enough to address the state's economic challenges.

The Democratic governor signed the spending plan for the fiscal year starting July 1 without any ceremony or substantive vetoes -- a contrast to last year when he twice vetoed budget bills and held news conferences criticizing budgets passed by the Republican-led legislature.

The budget for the 2005 fiscal year is $1 billion larger than the current one and spends even slightly more than Holden requested, though it relies on improved revenue from existing taxes, not the new taxes Holden had proposed.

Holden described the budget as "halfway home" when it comes to preparing the state to be competitive in the future.

"I am signing this budget knowing that Missouri can do better, but also recognizing the reality that this is the best that this legislature will do," Holden said in a statement announcing the signing of the 12 bills comprising the operating budget, plus several other bills.

More for schools

After some austere financial years, the budget will provide the biggest increase in basic school funding in four years; more money for colleges and universities, which had been hit hard by recent budget cuts; a $1,200 pay raise and better family health plans for almost all state employees; plus $600 million in growth for the Medicaid program over the budget originally adopted for the current year.

But Holden noted that the nearly $2.2 billion in basic state aid for public school districts still falls about $600 million short of the full amount called for under the funding formula. While up from last year, funding for higher education still will remain below the level appropriated for the 2002 fiscal year, Holden said.

The governor also criticized a slight cutback in Medicaid eligibility, which is projected to eliminate the government-provided health care coverage for 324 low-income adults while saving $158,334 in state general revenues.

House Republicans had pushed for much larger Medicaid eligibility cuts, but settled for what some acknowledged was a symbolic step after encountering resistance from Democrats and some Senate Republicans.

Holden also praised the Legislature for including several funding measures, including more incentive money for ethanol producers and money for the state's child protection division to try to gain national accreditation.

House Budget Committee Chairman Carl Bearden, R-St. Charles, praised the budget as a "job well done by the Legislature," citing the education funding boosts accomplished without tax increases.

Senate Appropriations Committee Chairman John Russell, who like Holden had advocated new revenues for the budget, said he nonetheless believes lawmakers did a "pretty good job" on the budget.

"I was pleased," said Russell, R-Lebanon. "I'm not saying if the state had had a little more funding we couldn't have wisely spent it. I know we could have."

Holden spokeswoman Mary Still said the governor signed the budget privately, instead of in a public ceremony, because Holden had discussed the budget in detail when the legislative session ended last month.

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Budget bills are HBs1001-1012.

On the Net:

Legislature: http://www.moga.state.mo.us

Governor: http://www.gov.state.mo.us