State Rep. Mary Kasten believes the 1992 session of the Missouri General Assembly will be dominated by issues related to education and health care, and ways to do more with less money.

"There will be a lot of hard decisions facing us this year," declared Kasten, who will begin her 10th year in the House Wednesday.

"It will be a tough, lean session connected with our overall lack of money. We have some tough issues of health care, workers compensation, education and social concerns that don't have easy answers."

In the area of education, Kasten sees the drafting of a new school foundation formula as being a top priority for elementary and secondary education, while for higher education she sees a greater focus on coordination.

Last November, voters rejected a tax increase tied to reforms for education by a 2 to 1 margin, which Kasten viewed as a clear indication people do not want higher taxes.

After reflecting on the Proposition B results and talking with people, the Cape Girardeau Republican explained that many felt the issue was too complicated and were skeptical of the package because it was so large.

"I think also people were feeling the pinch of the economy and saying, `no more taxes' and that we should do with what we have," added Kasten. "We are all guilty of wanting more services but no more taxes, but we need to use our initiative and figure out better ways to do things. I think that message was pretty clear from the voters."

In preparing a new school foundation formula, Kasten said it is essential that the new formula include a "hold harmless" provision to ensure that all districts get at least the level of funding they are receiving now.

One problem with the present formula is that it has not been fully funded through the years.

Several bills have been filed that would require school districts to impose a minimum local tax levy, an idea that Kasten tends to support.

"People need to be involved in their local schools and I think I do support requiring some kind of minimum local participation," she remarked.

A new formula will require some increased funding for elementary and secondary education, a tough task in the state's present tight economic situation.

One way the additional revenue could be raised is by a tax increase approved by the legislature. Under the Hancock amendment to the state constitution, there is a limit on the amount of new revenue the state can receive without voter approval.

There is enough of a window within that limit where legislators could approve additional funding for education and not have to submit a tax measure to the voters.

Kasten, like most other lawmakers, is cool to that approach.

"I don't think we ought to fly in the face of people who have said, `no new taxes,'" declared Kasten.

She would prefer to generate the revenue through cuts in other areas, but admits that will not be easy to do.

"Education is our priority and services for children are extremely important," Kasten observed. "At this point, I want to see where some of the proposals are to cut and where to stay within the budget."

Passing a tax increase within the Hancock limit "is an option," Kasten said, "but not one I would want to exercise until all the other options are examined thoroughly."

In the area of health care, Kasten believes there is a lot of talk, but doubts whether much can be accomplished this year.

"There are a lot of options that need to be explored," said Kasten. "We have a problem with access and affordability of health care, but we must have good quality medical care. We have medical technology that we can't afford and morality issues we can't resolve. That capsulizes the problem; we have to work on the solution one part at a time."

Kasten likes some parts of a legislative package being proposed by a coalition organized by the Missouri Hospital Association and the Missouri Chamber of Commerce. The Missouri House Republican Caucus has also offered some health-care proposals.

"We may try to make insurance companies a little more responsible and responsive to their people," said Kasten. "I would like to see us look at tax incentives for businesses that provide insurance for employees and allow for some pooling of smaller companies and businesses to make it easier to get affordable health insurance."

Kasten said she would support legislation to send a gas tax increase before voters this year. "I would lean more toward that than any other tax," she noted. "It has such a wide impact on our economic development, and we have a lot of projects dependent upon it such as the extension of Nash Road into our port authority."

Kasten has been meeting with the appropriations committee for health and mental health and soon will start meeting with the full budget committee in an effort to prepare a budget for the 1993 fiscal year.

She pointed out that health and mental health agencies have already been cut 12 percent.

"There has been a lot of re-directing of monies," said Kasten. "I have been pleased with some of the proposals by agency people because they are really trying to coordinate again and get better usage of tax dollars.

"Coordinating with other agencies is one of the best ways we have of addressing our shortage in funding," she said.