HOUSE MEMBERS' VIEWS ON FORMULA MIXED

JEFFERSON CITY - Several Southeast Missouri state representatives indicate they are leaning toward approving a tax increase for elementary and secondary education without going to a vote of the people, but the senior member of the General Assembly says he will have no part of such an effort.

"I am totally against it, bitterly opposed to it. I want it to go to a vote of the people," said Rep. Gene Copeland, D-New Madrid, who was first elected to the House in 1960.

"That is what the man promised the people. We're not going back on the public's trust when this is what they expected."

"The man" Copeland was referring to is Gov. Mel Carnahan, who campaigned last year for a tax increase for education that he promised would be submitted to a statewide vote.

But after analyzing a ruling by Cole County Circuit Judge Byron Kinder last January, which declared the current school foundation formula to be inequitable and inadequate, Carnahan changed his stance.

In a speech to a joint session on April 8, the governor said the legislature needs to respond to the court ruling by passing an increase in taxes for education, but without going to a vote.

Under Carnahan's plan, which was approved by the Senate Monday, the minimum levy for local school districts would be increased to $2.75, cuts from other areas of the budget would generate $50 million, and another $365 million from corporate and individual tax hikes would be used to fund the new school formula.

"A $365 million tax increase without a vote of the people. That's totally ridiculous," argued Copeland. He also opposes increasing the minimum levy unless that too is submitted to a statewide vote.

But other House members from the area say they are considering taking action without a statewide vote and fear the consequences of voters rejecting a tax increase. If that happens, the court order could force lawmakers to return in a special session next fall and vote a tax increase that voters have rejected.

"I think people will defeat a tax increase, no matter what it is," said Rep. Larry Thomason, D-Kennett, the House majority whip.

If lawmakers do not bypass the people, Thomason said, "I think we'll be back in special session sometime in the fall in a real awkward position."

Rep. Dennis Ziegenhorn, D-Sikeston, has no doubt that people in his district want a chance to vote on any large tax increase.

"I have clearly, clearly, clearly heard from people in my district that they want the opportunity to vote on it," said Ziegenhorn. "They do not want me to vote without letting them have a chance to have a say."

He added, "We all know that come August, Kinder's plan will be implemented. If we put the funding to a vote and it is defeated, what do we do then? Come back and overturn a vote of the people on a tax increase."

Ziegenhorn said there is just no way to fix the funding formula without more money.

Rep. Marilyn Williams, D-Dudley, vice chairman of the House committee on elementary and secondary education, agrees she is facing a dilemma in deciding which way to go. It may boil down to facing the wrath of voters in her district now, or later if a tax hike is defeated and the legislature is forced to react to the court order.

"I am trying to stay optimistic about this," said Williams. "The more I talk to people, the more I find how upset they are on a tax increase without a vote of the people. But after serving in the legislature and seeing what court ordered payments have done, it scares me about not being responsible and getting something done here so a judge doesn't decide how it is going to be paid."

But Copeland contends legislators are misreading Judge Kinder's ruling. "The judge didn't say to raise taxes. He said the way the money was distributed should be changed," said Copeland. "We can re-do the formula without raising taxes. We can include a hold-harmless provision and then use new money (from revenue growth) for districts that have been cut short in the past.

"They are using this to get a tax increase, and I think they should be honest with the people."

The bill that came out of the Senate has a minimum levy of $3, which after the Proposition C rollback will be $2.75. The Senate version has the minimum levy included in the new formula, with the funding contained in a separate bill.

Copeland said the minimum levy should also be included in a statewide vote.

"That higher levy will kill some property owners in these small districts. I couldn't vote for the bill if that was the only thing on it," said Copeland.

Last year, legislators approved an increase in the fuel tax without a vote of the people, to increase the state's ability to match all available federal funds and create jobs.

Copeland maintains this tax plan and that one are entirely different.

"The gas tax was a user tax. We had to get construction going right then. We were in the middle of a recession and had to put people to work," said Copeland. "A user tax is a lot different from a corporate and personal income tax and a property tax."

But Ziegenhorn said the two are similar. Even though the gas tax brought a $3 return for every dollar from the federal government, increased school funding will bring a better return on education.

"It is a legitimate comment to say we will do it for highways, but not for our most precious commodity," said Ziegenhorn.

Thomason points out that the minimum levy increase is necessary to see that all districts are playing on more of a level playing field in trying to make the new funding formula work properly.

He noted that Judge Kinder's ruling not only indicates that state funding is not adequate, but local funding is also inadequate in many districts.

In considering whether to vote the tax increase without a vote of the people, Thomason said legislators have to consider that this is in response to a court order, and that the only way to equalize educational opportunities for all children in the state is to increase funding.

"Nobody wants to pay higher taxes, but what choice do we have," said Thomason. "We also have to look at what we do to our children when we don't provide them a good education; what we do is handicap them for the rest of their lives."

Rep. David Schwab, R-Jackson, agrees that the minimum levy is essential to making a new formula work. Schwab said that while he would support raising the levy without a vote of the people, he has reservations about approving a large tax increase.

"I would be pretty nervous for us to come up with a large tax increase without going to a vote of the people," said Schwab. "I also have reservations that we can have a large tax increase and do it under Hancock without a vote of the people."

Even legislators who are leaning toward a tax increase without a vote of the people are unsure there will be the votes in the House to do it.

In fact, Copeland said he doubts the votes are there for a tax increase with, or without, a vote of the people.

Ziegenhorn only has doubts about votes to bypass the people on a tax hike. "I just don't think there is enough nerve in the House to pass a $365 million tax increase without a vote of the people," said Ziegenhorn.

"That won't fly any better than an elephant will."