Officials balk at new taxes in upcoming election year

JEFFERSON CITY, Mo. -- Even as he announced another round of state budget cuts and predicted further economic gloom and doom in the months ahead, Gov. Bob Holden was loath to utter the dreaded T- word.

When asked if raising taxes to preserve existing programs might be put on the table for discussion, Holden, a Democrat, talked around the topic.

"My job right now is to continue to manage the budget in a constitutionally balanced way," Holden said.

However, he did praise his budget officials for being able to take $536 million in budget actions since the summer "without contemplating a tax increase."

When pressed, Holden said he isn't considering a tax hike at present. But how bad would the economy have to get before he would?

"I'll let you know," Holden said.

With 2002 an election year, Holden's reluctance to talk taxes to maintain current spending levels isn't surprising.

Though Holden won't have to answer to voters until 2004, next year's elections could bring changes in party control of the Legislature, where Republicans rule in the Senate and Democrats own a majority in the House of Representatives. With a large number of open seats due to term limits, the balance of power could tilt either way. Neither party wants to give the other ammunition to use in campaigns.

Some groups interested

Senate President Pro Tem Peter Kinder, R-Cape Girar-deau, said there is no move for taxes in the Legislature.

"Not among lawmakers who have to face the electorate in November," Kinder said. "But among certain interest groups, there is a lot of it."

In addition to state transportation officials, who want more money to enhance road and bridge construction and other initiatives, some at other state departments, such as education and social services, are fearful of future cuts from their core budgets.

"They are all beating the drum for higher taxes," Kinder said.

Holden said his goal is for government to do more with less.

"The citizens out there paying taxes are also being negatively impacted by what's going on in this economy," Holden said. "I'm trying to keep them reassured that their government is doing the best job possible with the revenue we're getting."

This current climate could make it even tougher for the Department of Transportation to sell a transportation tax package, which MoDOT began pursuing when the economy was strong and state revenue plentiful.

Even Holden, who offered a $620 million a year plan this year, appears to be backing away from leading the drive for a transportation tax, putting the idea in the hands of the Missouri Farm Bureau. That group, which blocked the Holden plan this year, announced this month that it might support a transportation tax if MoDOT officials meet certain conditions.

Nuts and bolts

When lawmakers begin working on the new budget in January, state Rep. Pat Naeger, R-Perryville, said, the first thing they must do is dig into the nuts and bolts of state spending and make some tough decisions.

"Until we complete that exercise, going to the people and asking for more money is the inappropriate thing to do," Naeger said.

Naeger blamed massive increases in state spending during the flush 1990s, not a lack of revenue, for today's problems. Some initiatives that were added during the state's extended spending spree will have to go, he said.

"We need to look at protecting programs that are a must, and the other ones we probably need to give the boot to," Naeger said.

mpowers@semissourian.com

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