Holden criticizes GOP on proposed school cuts

JEFFERSON CITY, Mo. -- Gov. Bob Holden criticized the House Republicans' budget proposal Thursday for what he said would be a reduction of more than $300 million in school funding.

"Their plan cuts education," Holden said at a news conference. "It cuts the legs out from under our future economic growth."

House Budget Committee Chairman Carl Bearden, R-St. Charles, said his proposed cuts to elementary and secondary education are closer to $108 million.

Holden, a Democrat, said he was confident that voters would approve tax increases he has proposed to plug a projected $1 billion shortfall in the state's next budget. Holden's plan anticipates about $700 million in new tax revenue and about $300 million in reduced spending.

"We will go to the people of the state of Missouri and let them speak," he said. "They understand the clear difference here and what would be caused if in fact we don't have this revenue."

But Republicans, who control the Missouri Legislature, have expressed willingness to consider tax increases of $30 million to $60 million and have said the rest of the budget must be balanced by reducing spending.

House Republicans presented a budget that would spend $7.4 billion out of the state's general fund and other available sources, which Holden's office said was $557 million less than the governor wanted to spend.

Bearden said the GOP plan was really only $374 million short of what the governor was proposing. That is because Holden was including about $183 million in new gambling taxes that House leaders have indicated is unlikely to be approved.

Renee Godsey, assistant state budget director, said the budget office was predicting about $6.9 billion available for spending from the general fund.

Further complicating the budget is that House Republicans have decided to change the process.

Historically, the legislature has appropriated specific amounts for individual expenses or programs.

But Bearden and House Speaker Catherine Hanaway announced Wednesday they intended to give departments unprecedented latitude in how to spend their money. The departments would get a block of money and have the freedom to spend it as they see fit, under the proposal.

Senate leaders have shown a lukewarm response to that proposal. Senate Appropriations Committee Chairman John Russell said he was unlikely to take a similar approach when the budget arrives from the House.