Timing of vote on tax issues raises trouble for governor

JEFFERSON CITY, Mo. -- With a Republican-controlled General Assembly resistant to Gov. Bob Holden's call for major tax increases, the calendar could prove a significant problem to getting tax proposals on the ballot.

Holden, a Democrat, wants to boost state revenue by about $700 million to balance a $19.2 billion budget for the upcoming fiscal year. Roughly $500 million of that amount would come from direct tax increases and another $200 million from other efforts, such as eliminating loopholes in the tax code.

Although the Missouri Constitution would allow the legislature to raise up to $74 million on its own, voters must endorse any laws that would substantially increase state revenue.

Holden has suggested a July 1 special election for voters to consider any tax proposals lawmakers may authorize for the ballot. However, officials in Republican Secretary of State Matt Blunt's office say state law may restrict summer election dates to June 3 or Aug. 5.

Though only a month off either way from what the governor wants, the difference is critical.

Lawmakers would have until 5 p.m. on April 22 to submit a ballot proposal to Blunt's office for a July election. The deadline for a June election is March 25. However, since lawmakers will be on spring break that week, as practical matter they would have to approve something no later than March 20.

That would leave them only eight weeks to finish work that hasn't even started. By legislative standards that is a short time for action on a controversial issue.

Since the 2004 fiscal year starts July 1 -- the same day Holden wants an election -- an August referendum would be too late, spokeswoman Mary Still said.

"If we don't do it in July, we are going to have an unbalanced budget, which I don't think anybody wants," Still said.

Still also said a June election would be too soon given the challenges in the Legislature.

While the constitution gives the General Assembly the power to authorize special elections for ballot proposals, state law limits when elections can be held. Since the constitution trumps statutes, Still said lawmakers could set a July 1 election.

Officials in the secretary of state's office initially said the two provisions should be read together. As a result while lawmakers could set a special election, it would in this case have to be in June or August.

Terry Jarrett, Blunt's chief counsel, later said both legal arguments are reasonable on their faces, but there is no court precedent to provide guidance.

Because of the ambiguity, he predicted that whatever course of action Blunt took in regard to a July election would spawn a lawsuit.

Holden proposed a variety of different tax increases primarily targeting smokers, casino operators and the wealthy. At this point, it is unclear how many separate propositions would have to go on the ballot.

There is a good chance it may never even get that far as Republicans have been cool to the notion, especially since Missourians defeated two major tax proposals last year.

"It seems an incredible waste of time and resources and just more political posturing than an actual solution," said House Majority Floor Leader Jason Crowell, R-Cape Girardeau.

Still said that if Republicans have a better plan, the governor is anxious to see it.

mpowers@semissourian.com

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