MARGARET KELLY STRESSES AUDITOR QUALIFICATIONS

When voters of Missouri start focusing on the state auditor's race, Margaret Kelly expects them to examine her qualifications, independence and past job performance. Once they do Kelly is satisfied they will support her for another term.

"There is a very sharp contrast between myself and my opponent," said Kelly, during a campaign swing through the area this week.

Kelly, who was appointed auditor in 1984 by Gov. Christopher Bond and re-elected in 1986 and 1990, is challenged for a new term by State Sen. Steve Danner, a Democrat.

Kelly pointed out that she is a Certified Public Accountant who has worked in accounting all her life, while Danner is a lawyer with no experience in accounting.

Another difference, Kelly said, is the auditor must serve as the "watch dog for taxpayers." But last year Danner voted for a $310 million tax increase as part of the Senate Bill 380 education reform bill without having it go to a vote of the people.

"He did not respect the view of the voters or see the need to share this decision with voters," said Kelly.

With Democrats already holding control of five statewide offices, Kelly said she should be re-elected to maintain continuance of the state's two party system.

"If my opponent would win this office, we would have total one party rule. He would be a rubber stamp for the governor, and taxpayers would have no advocate," said Kelly.

She noted that Danner once worked for Gov. Mel Carnahan when he was lieutenant governor and also served on the staff of House Speaker Bob Griffin.

Kelly charged that Carnahan, who many believe she will challenge for re-election in 1996 if re-elected, has "doctored" official financial statements to insure the Hancock limitation on new revenues is not exceeded. Kelly said her job is to be sure taxpayers have honest information.

"There has been an attempt to manipulate that calculation to keep it under the lid in the future. I have not allowed that to happen, but if we had a rubber stamp auditor he would go along with the governor."

Kelly said Carnahan was wrong last year pushing the tax increase through in response to a circuit court order to change the school foundation formula. She said the judge did not order a tax increase as the governor has said.

Kelly has warned the governor and legislators that the Hancock limit may be exceeded, but she said it may be several years before the revenues come in to the point that limit might be topped.

If revenues exceed the constitutional limits, Kelly said she would hope lawmakers would follow the constitution and refund money to taxpayers.

If they failed to do so, Kelly said: "I would push to get a clarification, in court if necessary."

Kelly does not want to take a position on Hancock II because if it passes, she would need to "objectively and fairly" calculate what state revenue limits are. She scoffs at projections that have already been made warning of massive budget cuts of $1 billion or more.

"There are just too many variables for anybody to put a reliable figure out there right now," said Kelly. "But I do believe if our legislature and governor had held up Hancock I as it should have, we would not be facing Hancock II.

The auditor's office conducts more than 100 audits each year and has a staff of 165 people.

As a positive reflection on the work of her office, Kelly pointed out that recently she was one of four state auditors named to a 15 member committee by the General Accounting Office to revise federal audit standards for state and local governments that received federal funds.

"We are recognized nationwide as a top auditing firm, as a leader in the field," said Kelly.