CAPITOL REPORT: SYMPHONY NOTES SOUND DISCORD

JEFFERSON CITY -- Like a schizoid banker dealing with the village deadbeat, state officials have been dickering with symphony officials in St. Louis and Kansas City for nearly a decade over repayment of their loans. To compound the situation, the loans were illegal when they were made in 1985.

Seeking to resolve the problem at last, Gov. Mel Carnahan last month signed off on an agreement to forgive the outstanding notes -- if the symphonies would provide some notes of their own by giving some free performances around the state, including their own hometowns. When the agreement reached the media, legislators from both urban and outstate areas raised objections. And although the protesters seemed to agree that the governor's attempt to end the long-standing debt struck the wrong note, few were brave enough to weather taxpayer ire and suggest that the $2.2 million owned by the St. Louis Symphony and the $1.1 million that went to the Kansas City Symphony should just be written off the state's ledger books.

As predicted nine years ago when the loans were first touted as a cultural lifeline to the state's two largest cities, repayment from budgets that never seem to cover all the expenses has proved difficult, if not virtually impossible. Symphonies throughout the country have trouble raising enough money to meet ever-increasing expenses, although rock concerts in the same cities are highly profitable and are rarely burdened by fiscal sour notes.

Missouri's constitutional prohibition against publicly funded loans to individuals, corporations and such groups as symphonic societies dates back to the 1875 Constitution. A portion of the restriction reads, "The general assembly shall have no power to contract or authorize the contracting of any liability of the state, or to issue bonds therefore..." Those loans that are made by the state, such as water pollution loans, are allowable because voters have approved their creation through the passage of constitutional amendments.

As matters now stand, the symphonies remain indebted to Jefferson City, with loans that are not due until 1998, and if Carnahan is not re-elected to a second term, the problem will pass to his successor. Or, as one wag suggested, "It ain't over until the symphonies pay the last note."

ECONOMIC ENCOURAGEMENT: Missouri's economy has just been declared healthy and getting healthier by experts at the University of Missouri's College of Business and Public Administration. A quarterly report on the state of the state's economy predicts major employment growth and reasonably good increases in personal income for the remainder of the year. The report suggests the state will see the creation of nearly 60,000 new jobs in 1994, with the largest gains occurring in the private sector which should account for 85 percent of the employment growth. Public employment will creep along with only modest gains, the Columbia calculators believe.

University economists see a major job boost from the auto industry, with General Motors, Ford and Chrysler all contributing to the growth, while gains should also be registered in chemicals, food and printing-publishing. One of the largest increases should occur in the construction industry, with 13,000 new jobs forecast, mostly as a result of rebuilding from last year's floods. Employment in both wholesale and retail trades will also show strong growth, adding some 18,000 jobs.

Personal income throughout the state should rise by 6.6 percent for wage-earners, while non-wage income should top this at 7.7 percent. Urban wages will be higher, with the St. Louis area registering a 7.6 percent gain in wage income and more than 8 percent in non-wage salaries. Slightly higher levels should be recorded in the Kansas City region, the M.U. economists say.

Total building permits throughout the state for all of 1994 should reach 27,000, which would be about 23 percent above the previous year's.

ISSUE INCREASE: Missouri voters will decide at least four public issues when they go to the primary election polls on Tuesday, Aug. 2. Gov. Carnahan's signature on a legislatively approved $250 million general revenue bond issue should be the most widely publicized issue, with proceeds from it allocated to new-prison construction and capital improvements at the state's tax-supported colleges and universities.

The general revenue bond issue, requiring only a majority vote, will be retired from payments from the state's general revenue fund and will not create a tax increase on annual property tax bills. The proceeds will fund the construction of two new prisons, six juvenile lockups and a wide range of building additions, repairs and improvements at state-supported higher education institutions.

The other three issues awaiting voter decisions, all of them constitutional amendments, include Amendment No. 5, which would establish a salary commission to set state wages, including legislative pay; Amendment No. 1, which would permit first-class counties to adopt a charter form of government; and Amendment No. 2, which calls for the Department of Natural Resources to reimburse cities and counties for land taken off tax rolls for parks and reserves.

Amendments and referenda in the works for the November 8 general election include U.S. Rep. Mel Hancock's proposed revision of his original tax-limitation measure, a new riverboat games-of-chance amendment, a Christian Coalition effort against gay citizens, and another campaign contribution limitation plan being sponsored by ACORN and several other citizens' groups.

Given the large number of issues, it goes without saying that Missourians will soon be reading reams of material on both the pros and cons of a wide variety of public-policy issues. Just how much studying the average voter does to inform himself of the details of these issues is questionable, with some arguing that a large percentage of citizens never fully understand all details of complicated issues, relying instead on outside sources, including their own personal reactions to some emotional issues. But the Constitution makes no requirement that citizens be well-informed before deciding public policy.

Missouri News and Editorial Service