`OTHER FUNDS' ARE MOST OF STATE BUDGET

It may come as something of a surprise to many Missouri taxpayers that most of the cost of state government comes from sources that are earmarked for special spending purposes. These so-called "other funds" are administered by the Department of Revenue in 342 separate accounts.

Taken together, the other funds totaled $6.9 billion in the fiscal year that ended recently. This exceeds the general revenue funds of $6.2 billion.

Funds can be designated for specific uses in a number of ways. For example, legislators sometimes allocate special taxes for specific purposes. Sometimes voters are asked to approve spending plans that include a guarantee that funds will be spent on the purpose voters wanted. Most of the funds, however, are federal grants and direct payments for specific purposes, mainly Medicare. This entitlement payment to Missouri last year reached $1.3 billion.

One of the largest earmarked funds is for highways. Among the sources of revenue that must be spent on highways and related projects is the income from the state motor fuel tax. Last year the tax on fuel generated $903.5 million.

Among the smallest amounts in the other-funds category are accounts set up to handle money donated by relatives or friends of patients in state-run mental health facilities. These funds are designated for services not provided by the state budget.

Of course, most legislators would prefer not to have so many designated funds. In general, in does seem logical to assume that elected officials should have more say over how taxpayers' money is spent year to year based on changing needs.

At the same time, the need for some key designated funds is becoming more and more obvious. One clear example are the funds set aside for highways. Traditionally, the state has relied on these earmarked funds to build and repair roads and bridges throughout the state.

Specifying how fuel tax revenue and other sources intended for highways are spent continues to be a good idea. And there is no clearer example of why this is so than the recent Total Transportation Commission's effort at lumping a lot of nonhighway projects under the umbrella of the Department of Transportation that would be funded by revenue historically reserved just for highways.

There needs to be a balance, however, between funds that are designated for such needs as highways and those set up to address the current whims of state agencies and taxpayers.