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January 25, 2002 The State of Our State’s Budget Last week, what everyone in state government knew became official: Missouri is in a budget crunch unlike any other in recent memory. In his annual State of the State Address, Governor Bob Holden was very candid -- some tough decisions will have to be made, and the cuts will be felt across the state. The governor is in a difficult position, having come into office at a time when revenues were declining, a situation which worsened after the events of September 11. State revenue projections continue to be revised downward at a time when needs continue to increase. Since taking office, Governor Holden has reduced state spending by $612 million, and has proposed a 2003 budget that is $238 million less than last year. All told, the new budget contains $480 million in general revenue core cuts in 10 of the 14 state departments. Still, there are individuals who are trying to play partisan politics with the budget crisis, with such worn out phrases as “it’s not a budget crisis, it’s a spending crisis.†What these individuals don’t say is that the growth in the state budget in the 1990s was due mainly to federal block grants -- a policy adopted by the U.S. Congress that involved sending billions of dollars back to the states, for the states to spend as they saw fit. Nor will these detractors point out that the state of Missouri cut taxes by a billion dollars, permanent tax cuts that eliminated sales tax on food and extended much-deserved tax relief to small business, senior citizens, and property owners. Nor will they offer any suggestions on where the budget should be cut. They just parrot the tired old phrase, “cut the fat, cut the fat,†without saying where the fat is. In the face of $1 billion in budget cuts, we will be forced to cut past the fat -- we’ll be cutting down to the bone. But we stand firm on our conviction to fully fund public education in grades kindergarten through 12, and it is an issue on which all of us agree, from the governor to the House to the Senate. During his State of the State address, the governor outlined a few of his proposals to further reduce state spending, fund critical services, and yet do so without even considering a general tax increase. His plans include use of a portion of the state “Rainy Day Fund;†maximizing current revenues from riverboat gambling and the state lottery; and stepping up efforts to collect delinquent taxes. Since the budgeting process begins in the House, it will be up to us to take a hard look at the governor’s proposals and formulate a plan to deliver a budget that’s in balance, on time, and takes care of the needs of the people of Missouri within the means at our disposal. Just as every working family in the state has to make hard decisions on how to allocate the household budget, so must we. | |||||
Paid for by Kreider for Senator.
Bobby Neal Jr., Treasurer. Not at taxpayer's expense.
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