KASTEN SAYS STATE CAN'T DECIDE ON FLOOD PAYMENTS UNTIL FEDERAL GOVERNMENT DOES

State Rep. Mary Kasten, who serves on a special joint subcommittee of the legislative appropriations panels to assess flood damages and methods of paying the state's share, said Monday that planning is difficult without knowing whether the federal government will require matching funds for assistance.

In some of the recent natural disasters, the federal government has waived its requirements for a 25 percent match from state and local governments.

"Even if the federal government pays 100 percent, we won't be completely out of the woods," said Kasten. "But hopefully the costs will be small enough that we can absorb it within our current budget, or at least won't have to come up with a huge amount of money.

"If we have to come up with a 25 percent match, it will be hard on everybody."

The next meeting of the committee is Sept. 8, and Kasten said she hopes they will know what the federal government will do by then.

"Gov. Carnahan has certainly been pushing for the full 100 percent, and hopefully he will be successful," said Kasten. "I think the meeting on the 8th will shed a lot of light on the situation."

Carnahan has said he likely will have to call a special session of the legislature for the state to approve a method to come up with its share of disaster relief money. But at this point there is no reason to call one because no one knows for sure how much money is needed.

On Sept. 15 the General Assembly will convene for its annual veto session, and that seems to be a good time to also call a special session.

"Everybody assumes there will be a special session called around the time of the veto session, but apparently there has been no definite decision," said Kasten. "The governor probably has to wait on the federal government's decision."

Kasten said: "We're trying to prepare some preliminary considerations for if there is a special session on the flood. We are also trying to get some thoughts and ideas together for the governor and his staff. It won't be too bad overall if the federal government exonerates us from matching funds ... there are some indications that will happen."

With President Clinton back in Washington this week after a vacation, Kasten said there is speculation an announcement will be made later this week.

Last Friday's meeting in Jefferson City of the subcommittee was devoted to getting organized and hearing from representatives of state agencies about the extent of damage.

Kasten said it may be several weeks before a final assessment of damages in the state is made.

She explained the committee needs to know the immediate problems, types of funding sources available, and whether any changes in statutes are necessary for agencies to meet their needs.

In some cases, Kasten said additional personnel is needed in some agencies to provide assistance to businesses and individuals damaged by floodwaters.

Kasten said the panel is looking at methods of funding flood relief, but a firm plan cannot be developed until the amount of money needed is clear.

Several funding plans being discussed are implementing 2-cent increases in the state's gas tax, scheduled to take effect on April 1, 1994 and April 1, 1996 early, and a temporary sales tax.

Many legislators have expressed support for moving up the gas tax, but most have said any other type of tax increase should be done only as a last resort.

"It's an enormous problem facing the state. We are trying to gather all the information necessary to make good decisions," said Kasten.