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NewsApril 18, 2003

JEFFERSON CITY, Mo. -- Gov. Bob Holden met with Republican lawmakers from the Bootheel Thursday morning in an attempt to build support for new taxes that would lessen the scope of spending cuts needed to balance the state budget. While several of the eight legislators who attended the two-hour meeting said they emerged with a much better understanding of the Democratic governor's position, they still aren't ready to endorse a major tax increase...

JEFFERSON CITY, Mo. -- Gov. Bob Holden met with Republican lawmakers from the Bootheel Thursday morning in an attempt to build support for new taxes that would lessen the scope of spending cuts needed to balance the state budget.

While several of the eight legislators who attended the two-hour meeting said they emerged with a much better understanding of the Democratic governor's position, they still aren't ready to endorse a major tax increase.

"I give him credit for trying to work something out, but there are so many of us who don't feel we can vote for tax increases," said House Speaker Pro Tem Rod Jetton, R-Marble Hill.

State Rep. Gayle Kingery, R-Poplar Bluff, said taxes should only be considered as a last resort. He isn't convinced the state has reached that level of desperation.

"I still firmly believe with the revenue coming in that is enough money to run the state," Kingery said. "We just have to balance the budget and make sure we manage it properly."

Holden spokeswoman Mary Still said the governor felt the meeting was productive.

"They had a candid conversation about the effects of a budget without new revenue on the people of Southeast Missouri," Still said.

In January, Holden offered a $19.2 billion state spending plan for the fiscal year beginning July 1. His budget proposal would require $700 million in additional revenue to achieve balance.

The Republican majorities in both chambers of the General Assembly so far have been unwilling to consider raising taxes.

The Senate Appropriations Committee, which has been working nearly around the clock in recent weeks, finished its step in the process late Thursday afternoon. The committee's budget proposal reduces spending by nearly $600 million from what Holden recommended.

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May 9 deadline

The full Senate is expected to take up the appropriations bills next week. The constitutional deadline to complete the budget is May 9.

The top two legislative Republicans, Senate President Pro Tem Peter Kinder of Cape Girardeau and House Speaker Catherine Hanaway of Warson Woods, also met with the governor Thursday. Both legislative leaders said there is little support for new taxes.

"The votes for doing so are altogether lacking," Kinder said.

Holden has suggested various options, including raising taxes on cigarettes, casino gambling and wealthier Missourians.

Any significant increase would require voter approval. The soonest something could go on the ballot would be Aug. 5, a month after the start of the new fiscal year.

State Rep. Lanie Black, R-Charleston, said the public is currently unwilling to raise taxes, as evidenced by the statewide rejection of three tax proposals last year. However, he said that could change if cuts to vital services prove painful.

"I think the pain is getting ready to happen," Black said.

mpowers@semissourian.com

(573) 635-4608

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