| JEFFERSON CITY - Gov. Bob Holden today signed into law the 2005 budget for the state of Missouri, saying he is pleased that draconian cuts were prevented in education and health care. But Holden also emphasized that the budget does not do enough to move Missouri forward to meet the competitive challenges of the future economy.
"We are halfway home but we have a long way to go if we are to prepare our children and our state to be competitive in the future," Holden said. "I am signing this budget knowing that Missouri can do better, but also recognizing the reality that this is the best that this legislature will do."
The operating budget for fiscal year 2005 includes $7.1 billion general revenue funds. Holden already signed the budget for payment of the state's debt on May 7. The state's total budget, general revenue, earmarked and federal money, is $18.9 billion. The capital improvement budget includes $625,044 general revenue, $3.6 million total funds.
Holden noted that following a year of significant cuts, the legislature finally came to the conclusion that it is essential to add money to the education budget. However, he noted that the elementary and secondary education budget remains far below full funding for the foundation formula. A total of 298 school districts have filed lawsuits to challenge the equity and adequacy of the formula distribution, representing 90 of the state's 114 counties.
Higher education institutions received $24 million more than last year, but remain below the funding level for fiscal year 2002. "As I have emphasized throughout my term, it is short-sighted for the legislature to cut funding for education at any level, and I am glad they got the message," Holden said.
Holden noted that the overwhelming majority of Democrats and a handful of Republican legislators stood firm with health care advocates against efforts to gut the health care programs for low-income seniors, the disabled, children and working parents. "Their commitment to these initiatives demonstrates the successful role these programs have played in providing affordable health care for Missourians," Holden said.
Despite these efforts, the final budget eliminates health care coverage for 324 low-income parents. This saved only $158,334 general revenue and lowers the eligibility standard from 77% to 75% of the federal poverty level. The original House Republican plan would have cut 60,000 citizens off health care coverage.
"Given the mindset of the General Assembly, it is clear they would not do any better if given another opportunity. And there is real risk they would do greater harm," Holden said.
Holden said one highlight of the budget is the money to protect abused and neglected children. Based on Governor Holden's recommendations, the budget includes $6.1 million general revenue, $9.3 million total funds to begin the process of gaining national accreditation for the state's child protection program. Accreditation will provide additional tools to staff and lower unmanageable caseload sizes. "Children facing abuse or neglect deserve to have a trained and dedicated child welfare team to intervene on their behalf," Holden said.
Holden expressed appreciation for increased veterans funding. "Missourians have served with distinction in the armed forces of our nation, placing their lives at risk in order to preserve our freedom. This increase recognizes the special debt we owe to these guardians of liberty," Holden said. The final budget includes increases of $3.7 million to increase the number of nurses at veterans' homes, start the Korean Conflict Medal Program and increase outreach efforts.
In addition, Holden signed into law $6.4 million in funding for ethanol production in Missouri, a $2.2 million increase over last year. Ethanol plants are already in operation in Macon and Holt counties while plants are underway in Saline and Audrain counties. "Ethanol is an investment in our rural economies, our environment and our nation as we work to become more energy independent," Holden said.
The Governor worked with state employees to make sure the General Assembly understood the great need for additional pay for the dedicated workers in state government. Many employees have not received a pay increase for three years and Missouri ranks 49th of the 50 states in average state employee pay. The final budget includes $79.2 million for a $1,200 annual increase for all state employees, including $43.4 million general revenue. The budget also provides $58 million ($22.1 million general revenue) for increased fringe benefit costs, including $2.4 million ($1.6 million general revenue) to increase the state's share of healthcare for the Employee/Spouse and Employee/Family categories.
"State workers made their voices known, and this budget is a modest recognition of the demands they have faced as they have been asked to do more with less over the last few years," Holden said.
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