RUST COMMENTARY: STATE OFFICIALS DISCUSS TRANSPORTATION

The following are some additional miscellaneous notes and comments from my recent trip to Jefferson City:

The 35-member Governor's Total Transportation Committee has been having monthly meetings for almost a year. It has held a series of public forums to date and said to expect more this spring. The original schedule for a December 1996 report to the governor has been extended to this May.

Committee member JOE MICKES (head of the Missouri Department of Transportation) at a panel presentation for the Missouri Press Association's legislative meeting stated:

"Until we find a means of raising more money, we will have a hard time meeting the needs of all modes of transportation."

The present transportation department short-term action plan is to complete 80 percent of the Prop A plan (adopted in 1987) and 20 percent of the 1992 plan.

The 1992 comprehensive plan for Missouri's future transportation needs was supported by voters in the rural and urban areas. It was noted that of the 109 legislators who ran for election who voted for the tax increase, only six were defeated (and just one where the tax issue was raised).

However the shortfall of funds to complete the projects as presented to the public has been a warning to all to scrutinize any future proposals.

The reason offered for the budget projection miscalculation included:

1) Cutbacks in federal money assumptions, 2) no inflation factors built into construction costs (zero cost growth) and 3) INEXCUSABLE POOR BUDGETING (my comment).

It wasn't reassuring that the department currently has a grasp on where it is financially when Mickes then stated that the present shortfall to complete the proposals was from "$2 to 12 billion" (that's room for error!).

Watch for the Total Transportation Committee to recommend more gambling money (now mostly earmarked for education), general revenue and/or new taxes to be voted by the public to be used for transportation.

The TTC and the current Department of Transportation are dealing with ways of funding (in addition to highways and bridges, which are constitutionally designated recipients of the fuel tax) such as the Cape airport; port authority, railroads etc.

Mickes also announced that the Flexible Flyer ... a self-propelled train without an engine ... will be on display in St. Louis April 5.

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In a panel at the Missouri Press Association meeting, Attorney General JAY NIXON, State Treasurer BOB HOLDEN and Lieutenant Governor ROGER WILSON discussed some major issues they would be working on this year.

NIXON:

1) Health care: Continued focus on the Barnes-Jewish-Children's Hospital merger along with the proposed acquisition of Blue Cross/Blue Shield.

2)Internet: How to deal with activities on the internet which would be illegal if done directly.

3) Focus on the juvenile crime area, which is going up and is more violent while many other areas of crime are decreasing.

HOLDEN:

1) Economy: The state has earned over $440 million in interest over the last five years and currently has a 7 percent growth in funds.

Note: I asked Bob how much of the growth was attributed specifically to inflation, gambling revenue and/or tax increase and did it include the $270 million currently obligated for refund by the state to comply with the HANCOCK Amendment.

He said he would get me the information but that in perspective of a $14.1 billion dollar budget the $270 million was not a large percentage (actually about 1 percent per year).

2) Holden pointed out that Money magazine ranked Missouri as the third best financially managed state, which continues our high ranking nationally.

3) He mentioned the NAFTA SUPERHIGHWAY from Canada to Mexico -- (hopefully through Missouri) which was discussed at a recent Mexican trade mission he attended.

4) Holden pointed out that 100 schools and 100 banks in Missouri were partnering in a dollar-and-cents program to encourage youth saving.

WILSON:

1) He stressed that pocketbook issues were his major concerns along with most of Missourians.

2) He discussed education and technology advances under the current administration.

3) He pointed out that prisons and desegregation were major problem areas and that the governor is looking strongly at reorganization. He observed that Missouri will have to look carefully at the federal government's changes in funding for states this year.

4) Wilson applauded the Council on Efficient Operation and pointed out that the state is serving 19,000 people in Missouri prisons three meals a day for $2. (I didn't ask and don't know if he meant $2 per meal and $6 a day or three meals for $2 as I wrote it down.)

All three of the state elected officials dodged questions about future political ambitions. (Nixon to run for the U.S. Senate and Holden and Wilson to run for governor in 1999?) but pointed out finance laws, reporting obligations and changes in media coverage if they became announced candidates would slow them from early announcements if they were so inclined.

~Gary Rust is president of Rust Communications, which owns the Southeast Missourian and other newspapers.