ON EDUCATION: AREA SENATORS FAVORE VOTE ON TAX PACKAGE

CAPE GIRARDEAU - Three Southeast Missouri state senators were among the 24 who voted Thursday to send a $456 million tax increase to voters to increase funding for education.

Sens. John Dennis, D-Benton, Jerry Howard, D-Dexter, and Danny Staples, D-Eminence, all expressed support for giving the people of the state an opportunity to decide whether to increase their taxes to support education.

All three point out that the only way there will be significantly more money for education is through a tax increase.

"I voted for it because I wanted to know what the public thinks about it," said Dennis. "I want to see if the people think education needs more money."

The measure, which would be the largest tax increase in the state's history, was sponsored by Senate President Pro Tem James Mathewson.

Before it goes to the people for a vote, the measure first needs approval of the Missouri House, where close scrutiny is expected.

Mathewson's counterpart in the House, Speaker Bob Griffin, has called for increased funding for education, but has also suggested other areas of government need more money as well.

Cape Girardeau County's two state representatives, David Schwab and Mary Kasten, both said Friday they needed to study the Senate bill before committing support.

"I want to take some time to review the bill, but I certainly have an open mind about it," said Kasten. "Higher education is one of my focuses because it is so important to our entire area. I want to sort through the bill to see all that is covered.

"I agree that we need to support schools, but I'm not sure we should to the extent that is in that bill."

Schwab added, "I'm anxious to see it." He wants to see whether the measure includes some assurances there will be reforms made in higher education.

While Kasten seems anxious to pass a package that addresses the needs of all levels of education, Schwab has made it clear his priority is elementary and secondary education.

"With the economy as it is right now, I would rather see higher education work on some reforms before we go to a vote of the people with a large tax increase," observed Schwab.

The second term Republican stressed that he is very excited about a plan being worked on in the House that would provide a change in how funds for the state foundation formula is distributed and also include a tax increase that would fully fund the foundation program.

"I feel like we in the House have addressed the elementary and secondary needs with the plan we talked about this past week," said Schwab. "I have heard for years that we need to fund the foundation formula fully to have it work right and this does that."

The additional funding would come by capping the amount of federal income tax that can be deducted on state income taxes at $10,000. This proposal could generate the $120 million additional revenue needed to fund the foundation formula properly, and would also not trigger the revenue increase limits of the Hancock Amendment.

That means, the tax increase could take effect without a public vote.

"I am prepared to vote for that," said Schwab. "I think there is quite a bit of support for this. I think there is more support for this than what the Senate is sending us in a large tax increase."

Kasten said she also could support the House tax proposal.

The cap is one of the components of the Senate bill.

Both Schwab and Kasten were pleased that the full House agreed to amend a foundation formula bill last week with a proposal by Rep. Tim Kelley, R-Savannah, that takes away prior year constraint. Using prior year constraint, the amount of state aid a school district receives is based on prior years, and so a district that is growing does not get immediate benefits from increased pupils.

Kelley's amendment also has a hold harmless clause to prevent any school district from receiving less money than it is now under the new formula.

Schwab explained that having prior year constraint got schools out of balance in the per-pupil distribution of state funds. That growing discrepancy has been the source of several legal challenges to the present system.

Schwab and Kasten like Kelley's approach because, unlike the plan offered by the House Education Committee, this one tends to reward school districts that have higher tax levies.

Schwab stressed there is no reason for the state to subsidize school districts where citizens are unwilling to pass reasonable levies to provide local support.

As House members voted Thursday to accept Kelley's amendment, Schwab said he believes "most people voted their school district" and based their decision on which plan would bring the most to their area.

Cape Girardeau County's school districts will benefit from the amendment, if the final foundation formula bill wins approval from lawmakers.

According to figures from the Department of Education, which assumes the same student counts all years of the projection and a funding increase of $120 million, the Cape Public Schools that receive $2,865,000 now, would receive $3,850,000 in the 1991-92 school year in the new plan, with an increase up to $4,306,000 by the 1994-95 school year. Using the House committee distribution formula, Cape Schools would receive the same $2,865,000 next year, increasing to $3,805,000.

Jackson Schools, receiving $2,922,000 now, would receive $4,125,000, increasing to $4,614,000 by the 1994-95 school year under the new plan. The committee recommendation would have increased Jackson to $3,487,000 next year, increasing up to $4,125,000.

The Nell Holcomb District, receiving $531,000 now from the foundation formula, would get $602,000 next year under the revised plan, increasing to $673,000. Under the committee proposal, Nell Holcomb would get $532,000 next year and reach $609,000 in school year 1994-95.

Oak Ridge, which receives $459,000 now, would go to $472,000 under the new proposal and increase to $509,000. The committee version would have kept the district at $459,000 next year, growing to $491,000.

Delta, receiving $506,000 now, would get $561,00 in the next school year under the revised plan, increasing to $561,000. Under the committee proposal, Delta would get the same $506,000 next year, and it would grow to $534,000.

The Senate plan, which assumes a funding increase of $100 million a year, is comparable to the Kelley amendment.

Supporters of the House committee's formula, including Rep. Annette Morgan, D-Kansas City, chairman of the education committee, argue that their plan helps poorer school districts more.

Kasten, Dennis, and Howard point out that the state has pressing needs in areas other than education and believe some kind of effort will be made to expand the beneficiaries of the tax package.

"Everybody knows we need more money for education, but we need more money in mental health, social services, and everything," remarked Dennis.

"If we send this education package to the people, everyone needs to realize when you vote for that we will also have to come back for another vote on increases in funding for other state departments in the very near future," added Howard.

The senator said passing any kind of tax increase right now will be "a monumental task."

Dennis said he believes the House and Senate will eventually come together on some kind of a tax package to send to voters because "everybody knows the shape we are in. It looks like some kind of tax bill will go to the people.

"I think we should let the people decide if we need more money; then we'll know where we stand."

The Senate bill would raise taxes by capping the federal income tax deduction on state returns to raise $179.5 million; increase the sales tax by three-eighths of a cent to raise $170 million; would make a temporary graduated rate for corporate income taxes permanent and would cap the federal income tax deduction at 50 percent for corporations to raise $85.4 million; and would increase the cigarette tax by 4 cents to raise $21 million.

Of the money generated, $247 million would go to public colleges and universities; $185 million to elementary and secondary education, including vocational training; and $24 million to fund job development and tourism.