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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
JEFFERSON CITY - The Senate's top budget leaders proposed a plan Tuesday to tap $120 million from the state's Budget Reserve Fund to cover a projected shortfall in tax collections.
Senate Appropriations Committee Chairman John Russell, R-Lebanon, joined by the ranking Democrat, introduced the bill, saying the state's urgent fiscal crisis required the move. The bill would also use $50 million from the state's tobacco settlement payment.
Gov. Bob Holden announced Thursday that the state's tax collections would come more than $200 million short of expectations for the budget year ending June 30. Holden said money from the "Rainy Day Fund", a cash reserve for emergency use, along with further withholdings would be necessary to maintain a balanced budget.
Russell said the fund was designed specifically for last-minute emergencies such as this, and that quick action is needed.
"Time is fleeting away," Russell said. "This is truly what the fund is designed for."
Sen. Wayne Goode, D-St. Louis County, echoed Russell comments, saying there was more agreement to use the fund for this year's emergency than to use it for next year's budget.
The plan requires a two-thirds vote of both the House and Senate before any emergency money can be used.
Both the House and Senate have rejected using the Budget Reserve Fund for next year, although Goode said members were open to using it to finish out the current year's budget.
Russell's proposal would be the first appropriations bill in recent memory to originate in the Senate. Typically, budget bills start in the House and then move to the Senate. Russell said he started the bill in the Senate to get debate on the proposal moving.
Meanwhile, House and Senate budget negotiators met to craft a compromise plan to fund state services for the next fiscal year. Besides ironing out differences between the two chamber's positions, negotiators are faced with the challenge of finding several hundred million dollars in new money to pay for the plans.
Lawmakers were told Monday that there is $230 million less to spend than had previously been available. Because tax collections for this year are projected to drop, next year's revenue will start a smaller base, said state Budget Director Brian Long.
Lawmakers moved forward on plans to mortgage future payments from the state's tobacco settlement and close tax loopholes. The House also approved an amendment to raise casino taxes to fund schools.
Discussions also focused on a bill to modify the state's school Foundation Formula, the mechanism that distributes state aid to local school districts. The House version of the bill called for $175 million in additional school funding, while the Senate version called for an increase of $125 million.