Holden explains Jobs Now plan, budget needs

Just as in his State of the State address, Gov. Bob Holden spent Thursday explaining his mission to capitalize on Missouri's recent economic gains with his Jobs Now plan and why higher cigarette and casino taxes could help schools.

Speaking at the Southeast Missouri Regional Port Authority office to a crowd of about 40 people, Holden outlined a three-pronged effort to move the economy forward:

Implement the Jobs Now plan, which creates jobs, eliminates three tax credits and redirects the savings to finance construction of local infrastructure.

Increase the investment in ethanol production to strengthen farming communities, improve the environment and lessen our country's dependence on Persian Gulf oil.

Renew the state's commitment to public education with a budget that prevents additional cuts to education and restores cuts inflicted by the legislature last year.

Holden said Missouri bucked a national trend by creating 30,000 new jobs since January of last year, while the national economy lost 220,000 net jobs. Missouri created more jobs than all but seven states and more than any of the eight surrounding states.

"We're definitely starting to turn the corner and move in the right direction," he told the crowd.

The Jobs Now plan would build wastewater systems, industrial parks and broadband telecommunication systems, he said.

"There are a number of projects around the state that are ready to go if only the funding were available," he said.

Jobs Now would not require any new taxes, either. It would redirect existing funding resources by repealing outdated and inefficient tax credit programs, he said.

Low interest loans and grants would be made by board for approved applicants. That money would be an infusion of capital, he said. "For every $1 million that we invest, there's an opportunity of $16 million to $17 million in infrastructure," Holden said.

The governor also explained his recent call for $100 million in new budget cuts. The consequences of last year's cuts to education include 1,400 teachers losing jobs, college tuition increases of up to 20 percent, classroom overcrowding and closing of alternative schools for disruptive students, he said.

Holden said many school districts simply can't raise property tax levies any higher. His plan to increase education funding without a general tax increase would raise casino and cigarette taxes, close corporate loopholes, and raise income taxes on the top 1.4 percent of the population who earn more than $200,000 a year.

"I'd just as soon keep the lawyers and the courts out of our public schools," he said, alluding to a recent lawsuit brought by school districts over the state's withholding of $120 million from the schools. "But if we don't address the funding of public education, we're inviting the courts to step in.

Missouri has the sixth lowest cigarette tax in the country. Holden said half of the increase he's proposing now could be raised through a higher tobacco tax.

Voters said "no" to such a raise in 2002, but Holden thinks this time is different.

"The situation with the budget has gotten worse since that time," he said. "I think people have a better understanding of the situation."

mwells@semissourian.com

335-6611, extension 160