Holden, lawmakers confront one another in special session

Associated Press WriterJEFFERSON CITY, Mo. (AP) -- On a tense and raucous day at the Missouri Capitol, Democratic Gov. Bob Holden and Republican legislative leaders confronted one another with starkly different plans for the state's spending and taxing as hundreds of Missourians cheered and jeered them.

Holden, on the fourth day of a special session he called, implored lawmakers during a speech in their chamber to ask the voters to raise taxes to avoid "devastating cuts to education and health care."

Republican Senate President Pro Tem Peter Kinder and House Speaker Catherine Hanaway flatly rejected tax increases. They accused Holden of seeking a government shutdown by refusing to accept a budget that causes "government to live within its means."

During a series of sharp-tongued speeches from Kinder, then Holden, then Hanaway, hundreds of people crammed in the House galleries conversely applauded and booed the politicians.

Supporters from education and labor groups chanted "Holden, Holden, Holden ..." as the governor entered the House chamber to address the joint session of the House and Senate. Many wore pink stickers declaring, "Education cuts don't heal."

Holden pushed for his plan to ask voters to raise taxes on cigarettes, casinos and wealthier Missourians, and eliminate "corporate tax loopholes."

They were countered by supporters from business groups wearing red shirts proclaiming, "STOP HOLDEN'S TAXES!" They chanted the slogan on their shirts when Holden implored lawmakers to let the people decide on taxes or spending cuts.

"Let's allow the voters of this state to make an informed decision: an increase in cigarette and gambling taxes or fewer teachers in the classroom; corporate tax loopholes or health care for low-income children; drastic cuts or sensible tax reform," Holden said.

When Holden finished, supporters rolled out a larger banner in the back of the House visitors' gallery, stating: "Protect Education. Protect Health Care. Close the Loopholes."

A doorman took the banner away and Capitol Police escorted the group from the chamber for violating House rules against public displays in the chamber.

Holden waited until Kinder was done speaking to enter the House and left before Hanaway's speech. Many of his supporters also filed out.

Hanaway said the crisis facing the state isn't that taxes aren't high enough to support government, but that Missouri is among the leading states in job losses -- a situation that would be worsened by higher taxes.

"The governor has asked the question: Should we solve our state problems by raising taxes, or should the government live within its means?" said Hanaway, R-Warson Woods. "The answer is that the time has come for government to live within its means."

Earlier, the applause from Republican supporters drowned out the boos as Kinder, R-Cape Girardeau, proclaimed: "I join with other Missourians from all walks of life, who are asking of their elected leaders, when it comes to taxes: 'What part of 'no' don't you understand."'

The House took a break from debating a revised state budget to hear the midday speeches, which only seemed to inflame the partisan divide.

The governor called the Legislature into a special session after vetoing bills containing two-thirds of the expenditures in the $19 billion budget passed before the regular session ended May 16. He claims the original budget was unbalanced, despite cuts to education and human services.

Holden signed other parts of the budget for the fiscal year beginning July 1, meaning that if no agreement on the remainder is reached by then, some portions of state government could be jeopardized while others would continue.

On Thursday, the House began a tense debate on a new plan that would increase education funding and eliminate about 540 state employees -- using their salaries to fund the health and social programs they help oversee.

Republican leaders said they were cutting bureaucracy in response to Holden's special session call to restore cuts to vital government services.

The new Republican budget plan eliminates 259 mental health positions, 161 social services positions and 124 health and senior services positions and puts part of the saved money into services provided by the agencies. Most of the staff cuts would come from department headquarters in Jefferson City.