NewsJanuary 31, 2002

JEFFERSON CITY, Mo. -- House members accused Gov. Bob Holden of "budget blackmail" and shortsightedness Wednesday for proposing to tap into state savings to fund psychiatric and drug abuse treatments. Holden's proposed $19 billion budget depends on the unprecedented use of $135 million from the state's budget reserve fund to pay for state services...

By David A. Lieb, The Associated Press

JEFFERSON CITY, Mo. -- House members accused Gov. Bob Holden of "budget blackmail" and shortsightedness Wednesday for proposing to tap into state savings to fund psychiatric and drug abuse treatments.

Holden's proposed $19 billion budget depends on the unprecedented use of $135 million from the state's budget reserve fund to pay for state services.

If lawmakers don't approve the funding, Holden has said, he will cut the services, most of which are in the Department of Mental Health and Department of Health and Senior Services.

Gone would be $56 million for psychiatric services, $22 million for home health services, $20 million for the developmentally disabled and nearly $16 million for drug abuse treatment services, plus smaller cuts to other programs.

"It looks like -- it sounds like -- budget blackmail," state Rep. Charlie Shields said Wednesday as Holden's budget chief testified before a House appropriations committee. "We're being told if we don't do this, this is what's going to happen."

Holden spokesman Jerry Nachtigal said that if lawmakers oppose his idea, they should come up with a better plan.

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Great shock value

Shields and other lawmakers expressed outrage that Holden was asking them to choose between cutting popular programs or using the state's savings.

"It looks to me like these items were chosen" to be funded through savings "because they have the greatest shock value," said Shields, R-St. Joseph.

Holden's budget director, Brian Long, denied any sinister or sneaky motives.

The answer did little to quell the anger of some lawmakers.

Rep. Pat Naeger, R-Perryville, said Holden's plan was "shortsighted" because the state would have to pay back the money taken from its savings over the next three years -- and still would have to find a permanent funding source for the health and mental health programs.

"I think we are digging ourselves a gigantic hole that will swallow us," Naeger said.

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