JEFFERSON CITY - Less than 24 hours after voters across the state said yes to tax increases for public schools, the word from Jefferson City was clear: good times aren't just coming, they may already be here.
The Missouri House of Representatives approved a budget for the coming fiscal year that includes $100 million more in general revenue for elementary and secondary education than this year's budget -- all without any new tax increases. The fiscal year begins on July 1.
House Democrats characterized the move as "a fantasy," but Republicans touted their plan to increase education spending without raising taxes, and even Gov. Bob Holden's own budget director, Linda Luebbering, told reporters it was "certainly possible."
The Missouri Department of Revenue also announced Wednesday the state's revenue has increased 5.2 percent for the year, not including a $95 million infusion of funds from the federal government under a new job creation program. If those initial numbers prove accurate, it would mean the state would have enough money to cover the budget passed last year.
"I think it's saying what we said all along, that we passed a balanced budget (last year)" said Rep. Kevin Wilson, R-Neosho.
Rep. Ron Richard, R-Joplin said the situation added up to an environment where school districts could find themselves with more money than many residents had envisioned.
"I think school districts are going to have more cash than they ever have," said Rep. Ron Richard, R-Joplin. "I hope someone watches them as closely as they watch us here in the legislature."
But Richard stopped short of second-guessing the decision to push for levy increases, saying it was not surprising that school boards and superintendents -- as well as voters -- did not want to take any chances.
"I can understand why," Richard said. "The school boards are a little nervous after what happened in 2003. I think they didn't trust us to do our jobs."
House Republicans also renewed their calls for Gov. Bob Holden to release the withholdings he is making from education, saying that given the revenue numbers there is no longer an argument for holding back that cash.
"There never was an argument," said Rep. Wilson. "We said all along the money was there."
Observers said Holden is unlikely to release the withholdings before the April 15 tax deadline, which the governor's office has described as the "real test" for how well the state is doing financially.
The House debate over the budget drew out until almost 2:30 a.m. Wednesday morning, after which weary legislators headed home for a few hours sleep before returning to the Capitol to continue their work. By Wednesday evening, the last part of budget was finally given approval -- prompting a standing ovation for the House Appropriations staff and House Budget Chair, Carl Bearden, R-St. Charles.
But the relief was a contrast to the bitter arguments that characterized the marathon debate over where to spend Missouri's money.
Democrats were quick to point out that the House budget plan passed Wednesday depends on about $7 billion in revenue over the next fiscal year. Earlier in the year, the House, Senate and governor agreed the state should expect about $6.4 billion in revenue -- leading some Democrats to charge the budget was not based on "real numbers."
Republicans countered that increased economic growth means more money will be available than previously expected -- an estimate bolstered, they said, by the robust revenue growth announced Wednesday morning.
Some other main points of contention centered around the spending for higher education and social services. While the Republican-backed budget calls for a 4 percent increase in general revenue for elementary and secondary education -- more than $100 million -- compared to the current year, it also only provides for negligible growth for higher education.
Gov. Holden, by contrast, is calling for more than $40 million more to be spent on higher education.
Republicans are also calling for a 10 percent raise in spending for the Department of Social Services, an increase Democrats said would not cover the mushrooming costs of the programs being provided. Gov. Holden has said he wants to see a 15 percent increase over the current year.
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