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Unexpected revenue upswing enables lawmakers to fund budget without governor's tax increases

May 5, 2004
By: Rachel Schaff
State Capital Bureau

Governor Holden recommends tax increases to fund the state budget.

But, legislators disagree.

Rachel Schaff tells us how the legislature plans to fund the budget without the increases.

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Director of the Revenue Department Carol Fischer announced that the state economy is in surprisingly good condition.

Republican legislators say the economic upswing provides enough additional revenue to fund the state budget without tax increases recommended by Governor Holden.

Holden's spokeswoman Mary Still says that even though the economic changes have occured, legislators should still be conservative with the budget.

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Contents: Well we have a long history in this state of being conservative on our revenue estimates. It's far better to get a pleasant surprise like this than to have a shortfall.

Legislators are still reviewing sections of the budget regarding social services and agriculture.

From the state capital, I'm Rachel Schaff.

When the legislature reviewed Governor Holden's proposed state budget, it kept some ideas and tossed out others.

Rachel Schaff tells us how the legislature was able to retain increased funding for education while eliminating Holden's tax increases.

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The governor's budget proposal included more money for education and a substantial tax increase.

But a surprise economic upswing in Missouri provided enough money for legislators to fund the budget without additional taxes.

Holden's Communications Director Mary Still says that regardless of where the money comes from, the governor is happy to know it will go to eduction.

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Contents: The governor is pleased that they have followed his recommendations, including many in education. That's always been his first priority and the fact that they have a newfound religion on that issue indicates that they're hearing from the public.

The budget will go into effect in July.

From Jefferson City, I'm Rachel Schaff.

Last fall, Governor Holden proposed a budget with substantial tax increases.

Rachel Schaff tells us why, even though the state is in an economic upswing, Holden says the tax increases are still necessary.

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When the legislature reviewed Governor Holden's budget proposal, it found a way to fund the budget without the tax increases he recommended.

Holden's Spokeswoman Mary Still says tax increases for big business and cigarettes are still needed.

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Contents: He believes that money is needed if we are to be able to restore the cuts that the legislature made last year and to move forward in education.. A standstill budget is not a move forward in the state of Missouri.

Parts of the budget still need to be approved before it can take effect in fiscal year 2005.

From the state capital, I'm Rachel Schaff.