LETTERS: BEWARE, BEFORE VOTING FOR AMENDMENT 4, READ THE ENTIRE BALLOT

Dear Editor:

State constitutional amendment no. 4 will appear on the August 2nd special election ballot, as stated here: "'Shall the state incur an indebtedness of two hundred fifty million dollars by issuing bonds to pay for the building and rebuilding of facilities for prisons, youth services, and higher education?' Costs of retiring bonds would depend upon the size of bond issues authorized by the state and prevailing interest rates at the time of bond issuance."

I strongly recommend voters educate themselves, before voting on the amendment by reading the ENTIRE amendment. Pay particular attention to paragraph 4, which states: "If at any time after the issuance of any of the bonds, it shall become apparent to the commissioner of administration that the funds available in the state general revenue fund will not be sufficient ... a direct tax shall be levied upon all taxable tangible property in the state ..."

What does this all mean? In essence, the state would borrow money up to $250 million ($250,000,000) and pay it back over a period of time, with interest.

Let's run the numbers in an example. If the state was to retire a 250 million debt over 25 years at say 7 percent interest. We will have to come up with $21.5 million a year to retire the debt and pay a grand total of $538 million for the $250 million being borrowed. This $538 million will come through some form of taxation.

How will Missouri pay for these expenditures? We are expected to believe (paragraph 3) that the large debt will be paid for from the general revenue fund, so say the supporters of the amendment. However, paragraph 4 gives the state broad powers to mandate taxes if funds are not sufficient to retire the debt. Ask yourself these questions: Does the state currently have a large surplus in the general revenue fund to pay the debt and interest to justify this borrowing? If not, will legislators cut the budget in other areas or use their powers (granted by this amendment) to raise revenue through additional taxation?

Missourians, in essence, are being sold a bill of goods without knowing the cost up front! Would you buy a new car not knowing the sale price? Is this amendment, as it is written a result of good intentions or slickness and deception upon the part of our legislators? You must decide.

RODNEY VIESSMAN

Jefferson City

(formerly of Cape Girardeau)