WHAT OTHER SURPRISES AWAIT TAXPAYERS IN SENATE BILL 380?

Webster defines the word "loophole" as "a means of escape or evasion; a means or opportunity of evading a rule, law, etc." Missouri Gov. Mel Carnahan defines a provision of the school funding formula -- one that allows districts to refinance debts in order to garner more state money -- as a loophole. Was it intentional or just bungled legislation? Either way, the strings hanging off the huge state tax increase touched off by Senate Bill 380 continue to wave, giving Missouri taxpayers plenty of reason for bad nerves and justified suspicion.

In short, the school funding law allows districts to gain more state aid by refinancing building projects from bond debt to lease-purchase arrangements. Though state aid is based largely on a district's property tax rate, this arrangement means that a district can get additional money while the local property tax rate stays the same. By one estimation, current lease-purchase projects drive about $69 million in state money. If all debt services were converted to lease-purchase, the impact on the state budget could be as much as $200 million, a number that could double if new lease-purchase projects (such as the one Cape Girardeau voters turned down last month) were developed.

Here is what state officials say about the loophole:

-- "I have no doubt that the loophole will be closed (by the legislature). I can't recall a time when the reaction of the legislature was as unanimous as it has been on this issue," said Gov. Carnahan.

-- "The language (of Senate Bill 380) was too broad," said Sen. Harold Caskey, Senate Education Committee chairman and an architect of the law.

-- "My guess is that with most legislation involving something as complicated as this, a great number of (loopholes) creep in. But this one didn't creep in. Some legislators knew it was there and some legislators like it just the way it is." This remarkably candid comment was from Missouri School Finance Director Vic Slaughter.

Reflect for a minute on action taken with a singularly good intention (providing fair treatment to all Missouri school children) but one with a result that is uniformly baffling. Gov. Carnahan campaigned for office saying he would lead the charge to get a school tax increase passed by voters. Midway through his first legislative session, he announces he can't wait for voters and that the General Assembly should take the necessary steps to correct the foundation formula. A $310 million tax increase results, with the governor and legislative leaders of his party acting to champion the cause. Now, an author of the bill concedes the language was too broad and a state education official suspects that was calculated.

Casey Stengel, who managed championship baseball teams and ultimately directed a hapless expansion club, the Mets, once asked: "Can't anybody around here play this game?" We ask the same question, fearful a bit for the answer, suspect perhaps that some know how to play the game too well. What other surprises await taxpayers?