MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
Sponsor: Rep. Tim Green, D-St. Louis County
Description: Rainy Day Fund
Current Status: Failed on House vote
JEFFERSON CITY - House Republicans blocked a push to borrow from the state's "Rainy Day Fund," a move that Gov. Bob Holden said could lead to withholdings from state agencies and furloughs of state employees.
The measure fell 15 votes short of the 109 votes needed to borrow from the state's Budget Reserve Fund, which requires a two-thirds vote from both the House and Senate.
With less than 24 hours before a constitutionally mandated deadline to pass all spending bills by 6 p.m. Friday, House Speaker Jim Kreider, Lt. Governor Joe Maxwell and Senate Appropriations Chairman John Russell said the odds favored a special session to deal with the budget crisis.
Holden urged House members late Thursday to reconsider use of the fund as soon as possible.
"Time is running out very quickly," Holden said.
Holden said if the Rainy Day Fund proposal does not pass, he would likely call a special session.
Republicans defended their decision, saying that going into debt is a shortsighted way out of a spending crisis. They said Holden was using scare tactics by threatening to cut popular programs when in fact there is enough money to keep the budget balanced.
"There are ways he can balance the budget without dipping into the Rainy Day Fund," said Republican leader Catherine Hanaway of St. Louis County. "If he chooses to hurt education or hurt social services or furlough state employees, that's a very bad choice."
At issue is how to keep the state's fiscal ship afloat for the last six weeks of the budget year, which ends June 30. Gov. Bob Holden announced earlier that tax revenues would come in $230 million short of earlier projections, meaning he would have to raise more cash or suspend payments to state agencies.
Holden asked legislators to borrow $120 million from the Budget Reserve Fund and use $50 million in tobacco settlement payments. The balance of the savings would come from deferred maintenance and some withholdings, he said.
Without the Rainy Day tap, Holden said Thursday that he would be forced to withhold payments from school districts and furlough state employees.
House Democrats, who hold a 87-75 majority in the chamber, voted solidly to support the tap, while all but 6 Republicans voted against the measure.
"If they want to shut down government, let 'em," said Rep. Tim Green, D-St. Louis County, who sponsored the bill, saying that the state's budget is in a crisis.
Rep. Bill Ransdall, D-Waynesville, asked Republicans to support the measure, noting that even the most conservative members of the Republican-controlled Senate supported it.
"This body ought to step up, lay partisan politics aside and take care of the children, the elderly, and the needy people of this state," he said.
Russell, R-Lebanon, said he was disappointed in the House's refusal, saying the action complicates negotiations on next year's budget.
Lawmakers have until 6 p.m. Friday to pass all spending bills, meaning any unfinished work would wait for a special session called by the governor.