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NewsJune 9, 2003

JEFFERSON CITY, Mo. -- Gov. Bob Holden's hopes for getting a state budget more to his liking -- and tax increases to pay for it -- were built on the premise that residents unhappy with cuts to education, social services and health care would pressure Republican lawmakers to reverse their anti-tax course...

JEFFERSON CITY, Mo. -- Gov. Bob Holden's hopes for getting a state budget more to his liking -- and tax increases to pay for it -- were built on the premise that residents unhappy with cuts to education, social services and health care would pressure Republican lawmakers to reverse their anti-tax course.

Despite the governor's pleas and an advertising campaign waged by the Missouri Democratic Party focusing on the damage to vital state services, Southeast Missouri lawmakers say their constituents remained unconvinced.

During the two weeks he spent back home before a special legislative session to redo key portions of the budget began Monday, state Rep. Gayle Kingery, R-Poplar Bluff, said he met with numerous educators, senior citizens and others affected by budget cuts.

"To a person, they said no new taxes," Kingery said.

State Rep. Otto Bean, R-Holcomb, said his constituents offered similar sentiments.

"Some school superintendents wouldn't be opposed but realize, because of the current atmosphere, that it would be difficult to raise taxes," Bean said.

On to Senate

The budget debate of last week's special session now moves to the Senate, which like the House is controlled by Republicans. On Monday, separate committees will hear the budget bills and seven revenue measures.

The House versions of the appropriations bills would increase spending by $95.4 million over the original $19 billion budget, with the bulk of the new money going to restore some cuts in funding to local public school districts and higher education. The House action falls well short of the $354 million increase in appropriations Holden sought.

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The lower chamber also acted to eliminate 538 administrative jobs at the departments of health and senior services, mental health and social services. The savings would be shifted to restore funding to programs that previously had been cut in those departments.

State Sen. John Russell, R-Lebanon, said the House may have gone a little too far in reducing jobs -- action that caused much consternation in Jefferson City, the economy of which relies heavily on government employment and spending.

While tax proposals and other legislation filed by Democrats intended to generate more state revenue were ignored by House GOP leaders, there is some support for such measures among Senate Republicans, even though Senate President Pro Tem Peter Kinder of Cape Girardeau has vowed to hold to the no-new-taxes line.

Russell said he wouldn't wager on any revenue proposals winning Senate approval. However, he said some type of action is needed to establish long-term financial stability.

Russell -- who chairs the Senate Appropriations Committee -- proposes putting a cap on tax credits, which lawmakers authorized with glee during the boom times of the 1990s for a cost of more than $400 million for the upcoming fiscal year. He wants to limit credits to no more than 1 percent of general revenue, about $78 million. Because of the political popularity of credits, however, he isn't optimistic about passage.

Other revenue bills before the Senate Ways and Means Committee call for increasing taxes on cigarettes, casinos and wealthier Missourians. Also included are proposals to lift the $500 per gaming session casino loss limit and close various corporate tax loopholes.

The soonest something could go on the ballot is Nov. 4. Holden's special session call included a request for changes in state election law to allow for an earlier election. However, no such bill has been filed in either chamber.

Assuming the revenue proposals fail to clear the Senate, the legislature could wrap up its budget work by the end of the week.

mpowers@semissourian.com

(573) 635-4608

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