CARNAHAN SIGNS $10.9 BILLION BUDGET

JEFFERSON CITY - Missouri Gov. Mel Carnahan signed the 12 appropriations bills making up his first state budget Thursday afternoon, saying it was a conservative document that would not likely be subjected to the same withholdings as previous budgets.

"State agencies can expect the normal 3 percent reserve required by law to be withheld, but I am hoping no extraordinary withholdings will be necessary," said Carnahan. "We have prepared a budget with the General Assembly designed to prevent that outcome."

Carnahan praised the support he received from House Budget Chairman Chris Kelly, D-Columbia, and Senate Appropriations Chairman Norman Merrell, D-Monticello, and all the members of their committees in getting the $10.9 billion budget drafted.

By agreeing on the revenue projections the budget should be based on, Carnahan said, discussion was focused on where the money should be spent. "The consensus revenue estimate helped insure that discussions centered around spending priorities," he said.

A ruling in January by Cole County Circuit Judge Byron Kinder that the school foundation formula was unconstitutional "changed the dynamics of the budget process considerably and forced us to re-think some of our earlier decisions," said Carnahan.

To help deal with the crisis, the governor asked the legislature to make $50 million in permanent budget cuts, which were applied to education to help address the judge's ruling.

In signing the budget, Carnahan also announced vetoes of $1,147,000 in expenditures, including $7,000 for the re-enactment of the Battle of Belmont in Mississippi County.

Kelly said the fact that such a small amount was cut from the budget shows how close the legislature and executive branch were in working together on the budget.

"This was one of the most challenging and enjoyable budgets I have had in my nine years in the budget process," said Kelly. "The governor's office and the Senate worked well with us, and I had an outstanding committee that worked in a bi-partisan way."

Merrell said the final budget shows the Carnahan administration is off to a good start. He too praised the cooperative efforts, which he said helped close the gap on differences in versions of appropriations bills.

"This is one of the most pleasant and enjoyable processes I've had in the Senate," said Merrell.

Carnahan stressed that the budget deals with a variety of needs facing the state, including economic development, family issues, better health care and restructured innovations in social services.

Among those participating in the bill-signing ceremony in the governor's office was Cape Girardeau Rep. Mary Kasten, a member of the House Budget Committee.

This budget for fiscal 1994 takes effect July 1.