Matt Blunt says local taxes could create jobs

JEFFERSON CITY, Mo. -- A central tenet of Gov. Matt Blunt's political philosophy has been steadfast opposition to higher taxes. It was his main message as a gubernatorial candidate last year, and he has constantly hammered on the point since taking office in January, repeatedly framing tax increases as "job killing" or "job destroying."

Yet Blunt last week proposed potential taxes that he claimed would help create jobs rather than destroy them.

Part of a economic stimulus package Blunt announced last week would allow cities and counties, subject to voter approval, to authorize special sales taxes earmarked for economic development. The revenue generated by such taxes could be used to improve infrastructure and build facilities in order to lure new businesses.

When asked about the apparent contradiction between his long-stated belief that higher taxes are detrimental to the economy and his proposal to use tax increases to spur economic growth, Blunt failed to deliver a cogent explanation.

"I agree tax increases are harmful to working families and harmful to the economy, but I believe at the local level Missourians can determine what sort of resources they need," Blunt said.

When pressed, Blunt said he is fine with local voters choosing to raise local taxes but is opposed to higher state taxes, which also must be approved by voters. He did not explain how statewide taxes endorsed by voters are harmful but similar local taxes are not.

Protecting education

In reaction to Blunt's decision last month to temporarily withhold $100 million from public universities, House Democrats are pushing for a constitutional amendment to put future state education spending off limits from midyear cuts.

"Withholding education money is like a gambler taking out a loan," said state Rep. Trent Skaggs, D-North Kansas City. "Sure, he promises to pay it back, but if he loses, then the lender eats the cost. In this case, if the governor makes a bad bet on the state budget, then it's our children who lose out."

Most of Missouri's four-year institutions, including Southeast Missouri State University, are only getting 30 percent of the funds due them during March, April and May. Blunt intends to repay the money in June. He said the action was needed to ensure the state has sufficient cash flow to pay income tax refunds.

Blunt has long pledged never to withhold funds from elementary and secondary education, as his Democratic predecessor did, but made no such promise regarding higher education. The first plank in the Missouri Republican Party platform approved last summer calls for protecting K-12 education from withholdings, but drafters of the position said there was no need to follow through with a constitutional amendment.

Budget delays

It used to be tradition that the House, where the state budget process begins, approved its version of a spending plan before the start of the legislature's spring recess. For the second consecutive year, however, the House has failed to meet that unofficial deadline.

While the various appropriations committees that examine spending requests from state agencies have submitted recommendations, the House Budget Committee hasn't yet produced a budget plan to submit to the full chamber.

Once the budget bills clear the House, the appropriations process continues in the Senate. The constitutional deadline for finishing the budget is May 6.

During the three years Republicans have controlled the House, they have passed the budget by spring break only once, and that one deserves an asterisk. In 2003, after struggling to make significant cuts, House Republicans endorsed a lump-sum budget and left it to the Senate to formulate a detailed spending plan.

mpowers@semissourian.com

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