Money With-held -- After Promised to Schools

NEWS RELEASE    ---     From the Office of Representative Shelley Keeney - 156^th District

FOR IMMEDIATE RELEASE:	CONTACT:    Rep. Shelley Keeney
June 30, 2011	(573) 751-5912

 Independence Day

Each year, the general assembly of both the House and the Senate work to present a balanced budget for state departments.  By statute, however, the governor has the authority to withhold money – or to veto budget items line by line. 

Upon signing the $23.2 billion Fiscal Year 2012 Missouri budget, the governor recently announced $172 million would be with-held for education.  This figure includes $14.9 million for universities, $1.9 for community colleges and $8 million for school transportation via the Department of Elementary and Secondary Education.   

Lawmakers worked hard this session to find sources for the $10 million for school transportation – this is the money that school districts use to bus kids to and from school.  As you can imagine, it hits our rural schools the hardest since they have a larger number of miles to cover.  With fuel prices staying high (gas, diesel or even propane), rural districts will struggle again this next school year.   

Did you know that funding from this area was also withheld last year?  I can’t tell you how disappointing it is to see money stripped from this line of the budget again.

The rationale given for the withholdings is the need to pay for last winter’s blizzard, the Joplin tornado and flooding in Missouri.  No serious discussion has taken place, however, on whether or not to tap the state’s rainy day fund which is set up to pay for unexpected problems such as these. 

Another reason given is a revenue loss from capping the corporate franchise tax in Senate Bill 19.  This surprises me because the franchise tax limit for this year is the same as last year.  Bear in mind, the governor has already signed SB19 to eliminate the corporate franchise tax over the next five years.

After months of promising schools flat funding for this year, as compared to the year before; I am sorry to deliver this news to educators.  I am particularly concerned about how rural schools within the 156th district -- and across the state -- will continue to meet transportation needs with increasing fuel costs and reduced revenues.

Lawmakers worked hard to fund education at the cost of other state programs over the last several years; so I feel that this is not the time to take steps backward.

Please let me know if you would like to receive my weekly updates via electronic E-Mail, by sending an email with your name to: Shelley.Keeney@house.mo.gov

As always, I appreciate hearing your comments, opinions and concerns about state government.  Please feel free to contact me in Jefferson City at (573) 751-5912.  You may write me at: Shelley Keeney; Missouri House of Representatives; State Capitol -- Room 313; 201 W. Capitol Avenue, Jefferson City, MO 65101-6806 or email me.