KELLY WARNS TRIGGERING OF HANCOCK IS POSSIBLE

Republican State Auditor Margaret Kelly took aim at Democratic Gov. Mel Carnahan and the Democratic-controlled legislature Monday, charging that taxpayers are not being told the truth about whether a tax increase for education could trigger the refund provision of the Hancock Amendment.

"It is time to stop the big lie being promoted by supporters of this tax increase that a judge ordered the state to increase taxes.20He did not. In his order he said we needed to increase funding for education, which I agree with, but that doesn't mean we have to increase taxes to do so," said Kelly.

"It's also time to stop the misleading suggestions that the state can raise over $500 million without triggering a refund. No one can legitimately make that statement and such manipulation of the facts may end up costing the state a lot of money."

But the auditor said it would be next fall before she will have the data to release her report on the Hancock limit. Also, because her audits review the previous budget year, any effect by the tax increase won't be known until after June 1995.

Kelly maintained that her primary interest is in keeping taxpayers informed of their rights under the Missouri Constitution.

But Chris Sifford, a spokesman for Carnahan, said the governor intended to sign the education bill, known as Senate Bill 380, and that he had already taken into consideration the Hancock Amendment and was satisfied it would not be triggered.

"It is our view these are reckless comments coming from the state auditor in light of what the facts are," said Sifford. "We are completely confident we have room under the Hancock lid. She seems to have a bit of tunnel vision. She agrees with us that we need to spend more money for education, and that is the position we took. We came up with an outstanding plan that had bi-partisan support.

"We are completely confident that we are fine on this issue and would have never gone down this road without having our ducks in a row."

Kelly also believes that the Hancock Amendment was violated when legislators voted to increase the minimum levy for local school districts to $2.75.

"Even if he signs the bill, Gov. Carnahan does not have the final say on this issue. The Missouri Constitution gives the final say to the people of this state. They have a constitutional right to challenge unconstitutional local tax increases, and ask for a refund if the state tax and spending lid is exceeded," said Kelly.

"When you mix all of this together, what you have are the makings of a tax revolt, and Gov. Carnahan may very well have one on his hands when all of these new taxes take effect."

Rep. Larry Thomason, D-Kennett, said he is not an expert on determining the Hancock lid, but based on what experts have told him, he does not feel the lid will be passed.

"The Office of Administration tells us we're well within the threshold, and the House and Senate budget people say we are still well within it," said Thomason. "Everywhere we go, we keep hearing that we are well within it, except for Margaret Kelly."

Because of the conflicting viewpoints, Thomason said he hopes that Kelly will provide the methodology she used in making any determination that Hancock is being violated.

Said Thomason: "We have to be sure when you get conflicting stories like this. We owe it to everyone to find out what the real story is. We need to look at how she arrived at her figures, have it checked out by other people to see if her methodology is valid."

State Budget Director Mark Ward has said taxes could be raised by $325 million this budget year ending June 30 and by $527 million in the 1994 fiscal year without exceeding the Hancock limit.

Rep. David Schwab, R-Jackson, said he has maintained concerns about violating Hancock, but probably would not have supported a tax increase this large anyway without sending it to a vote of the people.

"I felt like the whole thing was thrown at us so fast that no one had a chance to research what we were doing," said Schwab. "We were moving a little too fast to understand what we really were doing."

Schwab said he believes another side of Hancock the state giving school boards an opportunity to raise their levies without a vote of the people has not been thoroughly researched.

Ultimately, Schwab believes the matter will be challenged in court.

Sifford argued that the auditor is just trying to play politics and give her political career a boost.

Said Sifford: "I think basically what she is trying to do is revive her political career, which has been dealt some serious blows with regard to her relationship with former Attorney General William Webster and some of her questionable audits of his office, which we have found out are not too good."

Kelly says she is an advocate for taxpayers of Missouri.

"I know it is popular to call the 1993 session of the General Assembly `a victory, the most productive ever,' and `a winner for everyone.' But what the last session told me is that Missouri taxpayers have few advocates in the General Assembly and none in the governor's office," said Kelly.

"But they do have an advocate in the state auditor. As such, if this bill is signed, I will insure that taxpayers know what their rights are and how to exercise those rights."

The auditor also promised to make sure that all funds from the tax are spent where the law says they will be spent in the classrooms educating children.