Senate's budget plan not that much different than Holden's

As I reported in an earlier column on the state budget, there is really not much difference (other than rhetoric) between Gov. Bob Holden's recommended budget and that of the Missouri Senate which projects additional revenue of approximately $200 million.

In fact the Senate's budget is arguably more in balance than the governor's, which relies on additional taxes and revenue of $730 million (including a rerun of the recently defeated tobacco tax) to be balanced.

The news media (our newspaper included) has been more focused on the cuts than the numbers, differences and savings achieved in the Senate committee's budget. We've been reporting the governor's talking points of firing 5,600 teachers and denying health-care coverage to 80,000 children etc.

The final committee budget was completed after many long hours of honest effort led by two 30-year veterans, Republican state Sen. John Russell, appropriations chairman, and Democrat state Sen. Wayne Goode (my House appropriations chairman when I served on the appropriations conference committee about 30 years ago). Both are honest, intelligent and independent.

Holden's time would be better spent working with the House and Senate leadership in efforts to pass the revenue proposals that do not require a vote of Missourians as required by any tax increases over $75 million.

The total funds in the Senate budget are only 1.3 percent below the governor's total budget plan and just 2.4 percent below in general revenue.

Here are some highlights of the budget passed by the Senate Appropriations Committee, according to a press release:

The $19 billion Senate recommendation for fiscal year 2004 is $130 million more than the General Assembly approved last year.

Assuming the Senate approved at least $200 million of the revenue enhancements they are considering, the legislature will be appropriating almost 99 percent of the amount the governor recommended.

More than $4.3 billion of this budget goes to elementary and secondary education. Approximately $2.2 billion of this amount goes to the foundation formula. Counting local property taxes and federal assistance, Missouri school districts spent a total of $6.4 billion in fiscal year 2002. A $230 million reduction in spending on elementary and secondary education translates into a 3.6 percent loss before the local school districts benefit from property-tax reassessment.

Preserved funding for disabled people receiving personal-care assistance: $28 million.

Sheltered workshops are fully funded: $18.6 million.

The CHIPS program is preserved in its entirety with eligibility up to 300 percent of poverty levels ($55,200 per year for a family of four).

The Senior Rx Program is fully funded.

State funding is preserved for safety-net hospitals that care for the poorest of the poor (their federal funding is increased by $5 million).

The Medicaid spend-down remains at 80 percent of the federal poverty level.

More than $20 million in additional funding is provided to give state employees earning less than $40,000 a $600-a-year pay raise. Note: State employees have not had a pay raise since July 2000.

Funding is increased for state employee health insurance by $24.5 million.

Funding is increased (over this fiscal year) for Alzheimer's research, MU hospitals and clinics, Ellis Fischel Hospital, Institute of Mental Health, Missouri Kidney Program, State Historical Society and Missouri Rehabilitation Center.

There also are taxpayer savings in the budget passed by the Senate Appropriations Committee, which:

Eliminated more than 800 full-time equivalent positions, mostly mid-level managers, their clerical staff and vacant positions that were not providing any front-line services.

Reduced the budgets of all statewide elected officials by approximately $2.2 million, a 5 percent reduction over last year's budget.

Reduced the judiciary budget by $6.5 million or almost 5 percent (assumes $200 million in new revenue)

Reduced the General Assembly's budget by 10 percent - This is the 2nd year in a row legislators have reduced their own spending. The Senate budget for the General Assembly is $4.5 million less than the governor's recommendation.

Eliminated welfare payments for foreign immigrants residing in Missouri ($2.1 million in savings).

Eliminated the governor's Washington, D.C., office, whose sole purpose is to lobby Congress ($234,238 savings).

Holden criticized the Senate Appropriations Committee for passing a budget with $530 million in reduced spending and for not presenting a "whole" plan.

The Senate has presented a balanced budget plan based on actual state revenue and provides for up to $200 million in additional spending contingent upon new state revenue.

Last year, Missouri taxpayers voted against raising taxes to improve roads and health care. Holden has failed to offer any proof or theory that Missourians this year will approve hundreds of millions of dollars in new taxes to balance the state budget.

The Senate appropriations staff feels any more revenue than $200 million booked by the Senate is unrealistic.

The Republican leadership suggests that some of Holden's statements regarding the budget prepared by the Senate Appropriations Committee are not completely accurate. The following are corrections and comments for clarification by the Senate staff:

DESE: The $2 million reduction in funding for the safe schools program was the amount that was appropriated for fiscal year 2002 and was not used. Holden withheld $1.1 million of the safe schools money.

Department of Higher Education: Last year Holden reduced funding for higher education by $176.8 million. Depending on revenue, the Senate budget calls for $54 million to $89 million in additional cuts.

Department of Mental Health: The Senate reduced the mental health budget by $23 million. Department representatives told the committee they could live with a $20 million reduction and worked with the committee to develop the cuts.

Department of Social Services: The Senate reduced social services spending by $31.4 million. That's less than 1 percent of the department's $5.6 billion budget. The $645,000 cut to domestic violence shelters would be restored if the Senate passes legislation that generates $200 million in combined revenue and savings.

Department of Health and Senior Services: The $11.5 million reduction in funding for health and senior services includes eliminating $5 million in funds for abortion providers like Planned Parenthood.

Department of Corrections: The Senate saved Missouri taxpayers $20 million in the corrections budget by delaying the opening of the new prison in Jefferson City ($10 million savings) and by eliminating 40 percent of the unfilled non-correction officer vacancies in the corrections department. The state has delayed in the past other prison openings (Bonne Terre and Charleston).

Department of Revenue: The Senate reduced this department's funding by $3 million but appropriated the governor's request for additional contract auditors and other enhancements to help the department collect an additional $35 million in revenue -- $2 million of the revenue savings is from the lottery and will go to education.

Gary Rust is chairman of Rust Communications.