Senate approves state budget

JEFFERSON CITY, Mo. -- Missouri's Republican-led Senate sliced money for education and social services Wednesday while approving a state budget that Democrats complained was in need of more tax revenue.

Senators are expected to consider ways to raise additional revenue for the budget later this week. But any new revenue only would soften -- not avert -- the cuts.

Democrats warned that the spending cuts could result in layoffs for thousands of public school teachers, sharp increases in college tuition and a loss of physical and mental health care for thousands of low-income Missourians.

Republicans said it was the best they could do, given weak revenue projections and an historical reluctance of Missouri voters to approve new taxes.

"We voted against the blind and handicapped and everything we could, because we're trying to hold the line," said Sen. Bill Foster, R-Poplar Bluff, a member of the Senate Appropriations Committee, which crafted the proposed budget for the fiscal year starting July 1.

The Senate passed the 13 bills comprising the budget on largely partisan votes during a two-day debate that ended Wednesday.

The budget now goes back to the Republican-led House, which could accept it and send it to Democratic Gov. Bob Holden, or could ask for a conference committee to negotiate differences between the Senate and House versions.

Holden has threatened to veto the budget, saying it relies too heavily on cuts and insisting that voters should get a chance to choose higher taxes instead lower government services.

The Missouri Constitution requires the legislature to give final approval to a budget by May 9. If Holden vetoes the budget, he could call the Legislature into a special session to reconsider it.

Holden's proposal

In January, Holden proposed a nearly $19.3 billion operating budget that depended on about $730 million in new revenue -- mainly through higher taxes on casinos, tobacco products, wealthy Missourians and corporations that now benefit from what Holden calls "tax loopholes."

Legislators have ignored most of Holden's tax and revenue proposals, and the House last month passed an almost $18.6 billion budget balanced entirely with cuts.

The Senate budget includes $18.8 billion in appropriations but could grow to $19 billion if the legislature passes bills to raise additional revenue.

Among the options being considered are elimination of the state's unique loss limit on casino gamblers -- a move that presumably would attract more gamblers and produce more tax and fee revenue -- and retirement incentives for state employees.

Under the Senate budget, basic state aid to public schools would be cut by $275 million or $175 million, depending on whether legislators approve the extra funding. Many school districts already have started giving notices to teachers that they will not be retained next year.

State money for public colleges and universities would be cut by $89 million or $54 million, depending upon the contingent funding. And that cut is in addition to a slight reduction recommended by Holden.

With no new revenue, Southeast Missouri State University's state appropriation would drop by 10.6 percent to $40.5 million for a loss of $4.8 million from its current budgeted level. Passage of the package with $200 million more in revenue would restore $1.8 million to the school for a total of $42.3 million, which would still be a 6.7 percent reduction.

The lower appropriation would translate to a nearly 20 percent reduction from Southeast's all-time high allocation of $50.3 million in fiscal year 2002.

Not all area institutions would lose money under the Senate budget.

The Southeast Correctional Center in Charleston would receive $11.8 million, an increase of roughly $1 million. The funding boost would enable the prison to open its final wing and complete its upgrade to maximum security status.

And under the Department of Mental Health's budget, the Cottonwood Residential Treatment Center in Cape Girardeau would get an additional $45,000 for a total of $2.28 million.

However, regional centers for the mentally disabled and retarded in Poplar Bluff and Sikeston would face cuts.

The Poplar Bluff facility would lose 10 employees and $89,000 in funding. At Sikeston, two jobs and $68,000 would be eliminated. Both centers would be left with roughly $1.5 million each.

Staff writer Marc Powers contributed to this story.