Senator proposes vote on tax increase to fund education

JEFFERSON CITY, Mo. -- Voters would decide whether to approve temporary sales and corporate tax increases to fund education under a bill introduced Wednesday by a key budget writer in the Senate.

Sen. Wayne Goode said his legislation, if approved by voters this August, would raise about $225 million in each of the next two years to fund the education foundation formula, the mechanism that sends basic aid to public school districts.

The bill, which would collect taxes from Oct. 1, 2002, through Dec. 31, 2004, would place a 20 percent surcharge on the income taxes that corporations owe the state.

During the same period, the state sales tax would be raised by one-quarter percent.

Goode, D-Normandy, said the corporate tax would raise about $75 million each year while the sales tax would generate another $150 million.

The additional money is needed, Goode said, because tight budgets are expected over the next few years.

Fearful of cuts

Without new taxes, "I am extremely fearful that the other things we know we have to do to fully fund the foundation formula will require us to cut programs in outstate Missouri," said Goode, vice chairman of the Senate Appropriations Committee. "The budget is going to be squeezed so tightly that there is going to be damage done."

Goode said the temporary tax increase could allow room in the budget to provide pay raises for state employees, who did not receive increases last year because of budget problems.

The bill likely will end up before the Senate Education Committee, which is led by Sen. Roseann Bentley, R-Springfield.

"I was hoping that we could find the additional $200 million in the budget," Bentley said. "I know that Senator Goode knows a lot about the budget, but I'm still hoping we could pull it out without a tax increase."

Fully funding the education foundation formula is also a top priority for both Gov. Bob Holden and House Speaker Jim Kreider, D-Nixa.

Jerry Nachtigal, Holden's spokesman, said the governor will outline his proposal for education funding during his State of the State and Budget Address Jan. 23.

Kreider has said he wants to complete work on education funding before moving to other issues but has not said where the money would come from.

Education bill is SB974 (Goode).