Mo. House budget chair seeks to fully fund schools

JEFFERSON CITY, Mo. -- The Republican House budget chief proposed Thursday that Missouri provide public schools with the full amount of money called for by the state's financing formula, even as others raised new concerns about whether it could afford to do so.

House Budget Committee chairman Allen Icet released a $23.8 billion spending plan for the 2011 budget year but acknowledged that it likely will have to be trimmed.

His proposed budget is about $53 million smaller than the one outlined by Gov. Jay Nixon in January. But Icet's version includes the full $106 million increase due to elementary and secondary schools next year, whereas Nixon had proposed giving schools an $18 million bump.

Icet said he was following the wishes of fellow House Republicans.

"We had a vigorous debate in caucus and a significant number of members wanted to fully fund [schools], and so that's what we did," said Icet, R-Wildwood.

Republican Senate leaders had said previously that they, too, wanted to fund the full increase called for under the state's K-12 school financing formula -- even if it meant making additional cuts elsewhere.

But earlier this week, Nixon met privately with House and Senate members to warn them that state tax revenue is falling short of expectations and that his original budget plan no longer was feasible.

Senate President Pro Tem Charlie Shields said full funding for schools is now doubtful.

"I'm not sure that's in the realm of possibility, given the notion now that we're probably looking at $400 million or $500 million below where we thought we were going to be," said Shields, R-St. Joseph.

He said the revenue shortfall also could cause lawmakers to rethink whether they can fulfill a deal between Nixon and the state's higher education institutions, which agreed to hold tuition flat next school year in exchange for modest state budget cuts.

Icet said his budget plan keeps the tuition-funding deal in place.

It also includes an assumption that Missouri will receive $300 million of federal Medicaid payments that have not yet been approved by Congress. Republicans previously had criticized Nixon for assuming that $300 million as part of his budget. But Nixon has now backed off that position and told lawmakers that it might be best to draft a 2011 budget without counting on that money.

House Budget Committee member Rep. Chris Kelly, D-Columbia, said he doesn't put too much weight on the specifics of Icet's budget plan, describing it as merely a starting point for additional changes.

"I don't think it's anything other than procedural at this point," Kelly said.