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Where’s the money going?
State lawmakers send a $22.4B balanced budget to Gov. Blunt
by Alyson E. Raletz
Friday, May 9, 2008

JEFFERSON CITY, Mo. — Lawmakers sent a $22.4 billion balanced budget to the governor Thursday, before the state deadline and before a decline in state tax revenues could worsen.

A week ago, the Associated Press reported Missouri’s year-to-date growth rate in 2007 had dropped to 1.9 percent.

Updated revenue projections should be released today, also the legal deadline for budget passage.

But Rep. Jim Guest, R-King City, the House of Representatives’ fiscal review chairman, isn’t worried. He, and other Republicans, have attributed the drop to the late submission of state tax returns.

Budget chairmen Sen. Gary Nodler and Rep. Allen Icet told reporters they remained confident revenue levels soon would meet budget estimates.

“We haven’t had, to date, any bills with significant impact go through so far,” Mr. Guest said, noting he would be more concerned about the 2008-2009 budget if pricey initiatives, like the proposed increase to teacher pay, had passed. “I’m obviously very concerned about revenue projections for next year.”

Budget handlers peeled back some programs in light of the revenue information, but touted its roughly $121 million increase to the school foundation formula and a $48.7 million spike in Access Missouri scholarships.

Still, Democratic Caucus Chairman Rep. Ed Wildberger, D-St. Joseph, said he believed the decline in state revenue called for more revisions.

“What we’re passing now, we’re going to come up with budget shortfalls later on — after the election,” Mr. Wildberger said.

The budget included funding for multiple projects and institutions in Northwest Missouri.

Nearly $1.138 million will go toward a new agricultural education facility at Chillicothe High School. The Litton Agriculture Center takes up about a quarter of the space at the school’s vocational education building, explained Rep. John Quinn, R-Chillicothe. Building a new center will free up the building for more vo-tech activities. Also, the state funds are a 50/50 local match, so the final building investment should total roughly $2.276 million.

Also, about $50,000 will go toward final work on a dental hygienist laboratory at Hillyard Vocational Technical School in St. Joseph.

The bill slots more than half of a million dollars to the St. Joseph Regional Port Authority, mostly to buy land in the South Side for railroad crossing bridge.

At Missouri Western State University, lawmakers OK’d a nearly $23.6 million budget, slightly less than what Gov. Matt Blunt initially recommended, $23.9 million.

The difference came partly from the House’s early decision to cut funding from “Prepare to Care,” a program intended to increase graduates in health-related fields and a difference of opinion between Mr. Blunt and House budget leaders.

A similar scenario played out for Northwest Missouri State University. The governor originally recommended $33.167 million in total for Northwest. The House approved $33.045 million, but this week the Legislature sent a nearly $33.099 million budget to the governor for the Maryville university.

The budget also includes start-up funding for the Chillicothe Correctional Center to the tune of $13.2 million to pay for new personnel and equipment. The funding sat high on Gov. Matt Blunt’s wish list of new decision items released in January.

The existing prison in Chillicothe, which was built in 1895, has an inmate capacity of 525. The new prison will hold more than 1,600 offenders. The department also plans to use the prison to help with overcrowding from the prison in Vandalia, Mo.

The Chillicothe prison’s total proposed budget of roughly $14.663 million is slightly higher to account for a 3 percent state employee salary increase.

The prison is set to open this fall.

Alyson E. Raletz can be reached at

alysonraletz@npgco.com.


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