Holden adds another veto in Cape trip

Gov. Bob Holden pledged to veto another budget bill during a stop in Cape Girardeau on Wednesday -- this time the $5.5 billion social services budget -- as he urged lawmakers to ask voters for tax increases to balance a budget that he claims is short $367 million.

Republican lawmakers say the budget is only out of balance by $12 million and that a special session, which would be called by the governor and would have to be held before the new fiscal year starts July 1 -- would be a waste of time and money. A special session would cost the state about $100,000 a week. The legislature, the GOP leadership in both the House and Senate say, won't back the tax increases sought by the governor.

In a visit to the Cross Trails Medical Center in Cape Girardeau, the Democratic governor disputed the GOP estimate on the budget shortfall and argued that a tax increase is the only option.

"We are projecting well over a $200 million shortfall because of the national recession," he said at the cramped clinic at 937 Broadway.

In all, the governor has vowed to veto $7.9 billion in spending for health and mental health, higher education and social services, or 41.6 percent of the $19 billion operating budget.

Holden has hinted he might veto the spending bill for elementary and secondary education, but declined to discuss specifics about future vetoes.

If he vetoes the budget for elementary and secondary education, it would bring the total vetoed spending to $12.4 billion, or over 65 percent of the budget. (See the accompanying story regarding the question of whether or not the governor has the authority to veto the budget for elementary and secondary education.)

Signing off

While the governor was touting tax increases, Sen. President Pro Tem Peter Kinder and House Speaker Catherine Hanaway formally signed the budget bills, paving the way for Holden to take official action on them.

Kinder said Holden should have stayed in Jefferson City to meet with GOP leaders to discuss the pending special session rather than visit Kinder's hometown to make another veto announcement.

"I'm the guy that told him a couple of weeks ago to park the plane, and here he is on the plane again," Kinder said.

The governor wouldn't to say when he would call lawmakers into special session to deal with the vetoed parts of the budget. Some political observers have suggested it could be mid-June.

Holden told reporters he doesn't believe his budget vetoes will shut down state government. The legislature, he said, has time to address the issue.

The governor said he would accept a budget that is balanced on the premise that Missouri's voters will approve a tax package in an election that probably couldn't occur until November because of ballot deadlines.

Voters might turn down new taxes, but Holden said they should be given the choice rather than having lawmakers decide the fate of state spending.

"The people's welfare must be our foremost concern," he said.

Lawmakers approved a social services budget that calls for spending 2.9 percent, or $155.7 million, more in the fiscal year that begins July 1 than in the current fiscal year.

But Holden said it's not enough. Without more money, he said, serious cuts would have to be made in social service programs.

"Cutting vital services is not the right thing to do," he said.

On other spending issues, Holden has said the tight state budget could mean more than $1.2 million less in state funding cuts for Cape Girardeau County school districts.

But Kinder has said that school districts will have more money to spend in the coming fiscal year. despite a $184 million cut in state financial aid. Kinder said increased property values -- thanks to state-mandated reassessment -- will generate an additional $280 million local tax revenue for school districts, more than offsetting the budgeted decrease in state funding.

Staff writer Marc Powers contributed to this report.

mbliss@semissourian.com

335-6611, extension 123

AT A GLANCE

Missouri Gov. Bob Holden has announced he will veto three spending bills and is threatening to veto a fourth.Here's what is affected:

$5.5 billion for social services

$1 billion for higher education

$929.1 million for mental health

$451.9 million for health

Total vetoed spending to date:

$7.9 billion or 41.7 percent of the state's operating budgetPossible additional cut:

$4.5 billion for the elementary and secondary education

Total vetoed spending with

DESE budget included:

$12.4 billion or 65.3 percent of the total budget.

By Mark Bliss ~ Southeast Missourian

Gov. Bob Holden pledged to veto another budget bill during a stop in Cape Girardeau on Wednesday -- this time the $5.5 billion social services budget -- as he urged lawmakers to ask voters for tax increases to balance a budget that he claims is short $367 million.

Republican lawmakers say the budget is only out of balance by $12 million and that a special session, which would be called by the governor and would have to be held before the new fiscal year starts July 1 -- would be a waste of time and money. A special session would cost the state about $100,000 a week. The legislature, the GOP leadership in both the House and Senate say, won't back the tax increases sought by the governor.

In a visit to the Cross Trails Medical Center in Cape Girardeau, the Democratic governor disputed the GOP estimate on the budget shortfall and argued that a tax increase is the only option.

"We are projecting well over a $200 million shortfall because of the national recession," he said at the cramped clinic at 937 Broadway.

In all, the governor has vowed to veto $7.9 billion in spending for health and mental health, higher education and social services, or 41.6 percent of the $19 billion operating budget.

Holden has hinted he might veto the spending bill for elementary and secondary education, but declined to discuss specifics about future vetoes.

If he vetoes the budget for elementary and secondary education, it would bring the total vetoed spending to $12.4 billion, or over 65 percent of the budget. (See the accompanying story regarding the question of whether or not the governor has the authority to veto the budget for elementary and secondary education.)

Signing off

While the governor was touting tax increases, Sen. President Pro Tem Peter Kinder and House Speaker Catherine Hanaway formally signed the budget bills, paving the way for Holden to take official action on them.

Kinder said Holden should have stayed in Jefferson City to meet with GOP leaders to discuss the pending special session rather than visit Kinder's hometown to make another veto announcement.

"I'm the guy that told him a couple of weeks ago to park the plane, and here he is on the plane again," Kinder said.

The governor wouldn't to say when he would call lawmakers into special session to deal with the vetoed parts of the budget. Some political observers have suggested it could be mid-June.

Holden told reporters he doesn't believe his budget vetoes will shut down state government. The legislature, he said, has time to address the issue.

The governor said he would accept a budget that is balanced on the premise that Missouri's voters will approve a tax package in an election that probably couldn't occur until November because of ballot deadlines.

Voters might turn down new taxes, but Holden said they should be given the choice rather than having lawmakers decide the fate of state spending.

"The people's welfare must be our foremost concern," he said.

Lawmakers approved a social services budget that calls for spending 2.9 percent, or $155.7 million, more in the fiscal year that begins July 1 than in the current fiscal year.

But Holden said it's not enough. Without more money, he said, serious cuts would have to be made in social service programs.

"Cutting vital services is not the right thing to do," he said.

On other spending issues, Holden has said the tight state budget could mean more than $1.2 million less in state funding cuts for Cape Girardeau County school districts.

But Kinder has said that school districts will have more money to spend in the coming fiscal year. despite a $184 million cut in state financial aid. Kinder said increased property values -- thanks to state-mandated reassessment -- will generate an additional $280 million local tax revenue for school districts, more than offsetting the budgeted decrease in state funding.

Staff writer Marc Powers contributed to this report.

mbliss@semissourian.com

335-6611, extension 123

AT A GLANCE

Missouri Gov. Bob Holden has announced he will veto three spending bills and is threatening to veto a fourth.Here's what is affected:

$5.5 billion for social services

$1 billion for higher education

$929.1 million for mental health

$451.9 million for health

Total vetoed spending to date:

$7.9 billion or 41.7 percent of the state's operating budgetPossible additional cut:

$4.5 billion for the elementary and secondary education

Total vetoed spending with

DESE budget included:

$12.4 billion or 65.3 percent of the total budget.