LOCAL OFFICIALS UNCERTAIN ABOUT HANCOCK II IMPACT

The impact of the Hancock II Amendment on local governments could range from direct loss of state money to no effect at all.

That uncertainty makes officials with Cape Girardeau public schools and city and county governments uneasy.

City Attorney Warren Wells said, "It's real clear that the amendment, if approved, will breed sweeping changes for the way local governments operate and state government as well."

If approved, Hancock II could change or repeal as many as 45 sections of Missouri's constitution.

Proponents say the amendment merely enables all Missourians to have a vote on new state and local taxes. But opponents say the effect would be much more far reaching; they predict the legislation, if approved, could trigger a $1.169 billion cut in state services, including a $284 million cut to elementary and secondary education. The cut would represent about 32 percent of the amount distributed to school districts from the state through the foundation formula.

If the same percentage is applied to state-aid receipts, Cape Girardeau public schools stand to lose close to $1 million, said school business manager Larry Dew.

It could also mean changes in the way Cape Girardeau city does business. But county officials predict little if any immediate impact because tax or fee increases are unlikely.

It probably will be late next week before county clerks across Missouri are able to complete the verification of signatures on the statewide petitions. Verification is needed to place Hancock II on the November ballot.

Since Hancock II is a constitutional change, signatures of registered voters must equal 8 percent of the total votes cast in the last vote for governor in six of the nine congressional districts of the state. In all, that comes to about 130,000 signatures.

Meanwhile, local officials are trying to gauge the impact of the legislation, should it be approved.

Dew, for example, has developed a list to show the significance of a $1 million revenue reduction to the local school district.

In Cape Girardeau schools, $1 million is equal to:

-- The net proceeds from a 36-cent tax levy.

-- The salaries for 46 beginning teachers at $20,000 annually.

-- A 6.6 percent pay cut for all district employees.

-- The cost of 26 new 65-passenger diesel buses.

-- The cost of 474 new classroom computers.

-- The annual debt service required to pay off a $9.48 million bond issue.

Cape Girardeau city doesn't face the same direct financial loss because it doesn't receive state funds in the same way schools do. But Wells said city officials are equally concerned with Hancock II.

Two changes, one concerning revenue bonds and the other special tax bills, could have a significant impact on Cape Girardeau, Wells said.

If Hancock II is placed on the ballot and passes, the city's $25 million sewer improvement extension program, which is financed by revenue bonds from a one-quarter-cent sales tax, would have to be amended to designate where the money is going.

The city's options:

-- Wait to see if Hancock II is certified for the Nov. 8 ballot.

-- Refinance the project in anticipation of Hancock II getting on the ballot and passing.

-- Put the sewer improvement project up for another vote before the November election.

Refinancing the project to comply with Hancock II would cost $50,000. Putting the issue to another vote would cost $5,000. However, Wells said, construction delays that might occur if the city waits could cost more than $50,000. The city council will decide.

Cape Girardeau uses special tax bills regularly as a way to fund street and sewer extensions and improvements, but that could change under Hancock II. With special tax bills, property owners are billed for a portion of the cost of the work. Lexington street from Kingshighway to Perryville is a good example of how the special tax bills work, Wells said.

Property owners on either side of the road will be billed for construction costs, prompting them to develop the property. In turn, the city provides a good street making the development possible.

The city was able to annex Twin Lakes and provide sewer service utilizing the same type of tax bills. Wells said tax bills have also been used for commercial developments.

"If that is eliminated or made so difficult that we can't use it, it will have a big difference on expansion of the city," Wells said.

The amendment would require that increases in virtually every fee, admission to the city swimming pool and golf course fees, go to a vote of the people, Wells said.

Initially Hancock I also required a vote for fee increases, but subsequent court rulings gave some fee-raising power back to local governments.

Presiding County Commissioner Gene Huckstep anticipates no impact for Cape Girardeau County from Hancock II.

Fee and tax increases aren't in the cards in the foreseeable future. "We've been savers, not big spenders," he said.

However, Huckstep thinks Hancock II is a bad piece of legislation. If it reaches the ballot and is approved, Huckstep predicts court battles will follow. Repeated litigation costs money. Huckstep said Hancock II isn't the answer to rising taxes and governmental expenditures.

"I know the intent is to put the cap on free spending but that's what we elect officials to do," Huckstep said. "If they don't do it right, get rid of them."