Now is time to resolve budget issues

When I served in the Missouri House of Representatives in the mid 1970s, I was immediately surprised that no running total (or checkbook balance) was being kept in the House where the appropriations bills were initiated. As it does today, Missouri had to operate with a balanced budget.

Bills came with fiscal notes of estimated costs, and we were passing legislation with new services and benefits to many different constituencies. The House members were telling those who sought their support that they'd voted for the bill but the Senate had killed it (or the governor could veto it for monetary or other reasons).

Halfway through my first session, I found that the fiscal notes on new spending we'd passed totaled over $150 million, and we only had $90 million of new revenue available.

Therefore we were NOT really participating fully in the legislative process. We were abdicating fiscal responsibility and leaving the final budget choices to the Senate. They knew it and had to wonder at our irresponsibility (or stupidity).

So some of us put out a running total of the costs of new legislation, and from that point on the cumulative cost became a major factor in the defeat of many worthwhile but unaffordable bills.

Gov. Bob Holden has presented a questionably unbalanced budget to the legislature for the coming fiscal year. I say this because $500 million of newly budgeted revenue is based upon the Missouri taxpayers passing tax increases AFTER the legislature has adjourned.

If the legislature adopted his budget as presented, they would be abdicating their responsibility of participating in the decision of where to reduce expenditures to balance this budget.

The governor would have the responsibility and the CHOICE of what services or benefits would be cut IF the approved taxes failed (months into the budget year). Of course he could call a special session, but NOW is the time for the governor's staff and the House and Senate to make a good-faith effort to address the problem.

As in business, this requires input from the various departments as to their priorities and recommendations of potential areas where expenditures can be reduced or eliminated.

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The current game of press releasing and criticizing every proposed spending reduction followed by media headlines and interviews of people affected is political campaign posturing unbecoming any serious effort to address Missouri's budget problems.

Across-the-board cuts (JIM MOODY has stated 15 percent cuts will be required) throw the priority decisions to individual departments but do not reflect budget leadership.

Some have suggested that NEW budget increases over the last 7 or 8 years that have driven the state to its $1 BILLION shortfall are the first areas to review.

I don't really care what approach is used as long as we quit playing media politics with Missouri citizens.

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For all but three states, fiscal health worsens: The National Conference of State Legislatures said states' current budget gaps have grown to a total of nearly $26 billion, 50 percent wider than the total in November, when the conference last surveyed state budget officials.

What's more, the shortfall projected for fiscal 2004, the budget year that states are now planning for, is forecast to be at least $68.5 billion -- and probably will rise significantly since 11 states had no projections. Just three states said they wouldn't have gaps in 2004: Arkansas, New Mexico and Wyoming.

"State budgets are under siege," the NCSL concluded. "The faltering market, contractions in the manufacturing and high-tech sectors, and soaring health costs have combined to undermine the stability of state budgets." Many states have little choice but to take painful steps; most have already exhausted easier steps, such as tapping rainy-day funds or one-time accounting gimmicks. In Massachusetts, for example, Mitt Romney, the new Republican governor, has been forced to propose cuts in education, as well as in the joint state-federal Medicaid health-care program for the poor just to balance the 2003 budget.

The NCSL's survey showed 36 states are running deficits; Tennessee didn't report, but its officials have had a continuing budget fight in recent years. Of the 13 that reported a small budget gap, several have cut spending or raised taxes to make that possible.

The NCSL survey found that for fiscal 2003, which for most states ends June 30, 13 states have cut Medicaid spending, a dozen cut higher-education programs, and nine trimmed elementary and secondary education. Yet revenues continue to come in below previous projections, requiring further action. Medicaid and education are states' biggest costs. At least 24 states have tax increases on the table for their fiscal 2004 budgets. -- The Wall Street Journal

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Newspaper headlines in 2035:

Ozone created by electric cars now killing millions in the seventh largest country in the world, California.

White minorities still trying to have English recognized as California's third language.

Spotted owl plague threatens northwestern United States crops and livestock.

Baby conceived naturally; scientists stumped.

Iraq still closed off; physicists estimate it will take at least 10 more years before radioactivity decreases to safe levels.

Castro finally dies at age 112; Cuban cigars can now be imported legally, but President Chelsea Clinton has banned all smoking; George Z. Bush says he will run for president in 2036.

Postal Service raises price of first-class stamp to $17.89 and reduces mail delivery to Wednesday only.

35-year study: diet and exercise are the key to weight loss.

Supreme Court rules punishment of criminals violates their civil rights.

Average height of NBA player now 9 feet, 7 inches.

New federal law requires that all nail clippers, screwdrivers, fly swatters and rolled up newspapers must be registered by January 2036.

Congress authorizes direct deposit of illegal political contributions to campaign accounts.

IRS sets lowest tax rate at 75 percent.

Gary Rust is chairman of Rust Communications.