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Court ruling favors Holden administration

March 8, 2001
By: Aaron Cummins
State Capital Bureau

Story:
RunTime:
OutCue: SOC

This is Aaron Cummins for Missouri Capital Caucus.

Missouri's budget shortfall was spared a further hit when the Missouri Supreme Court ruled that the state doesn't owe 244 million dollars in additional tax refunds.

The High Court's ruling means the budget shortfall remains at about 300 million dollars for the time being.

But, the future of the budget is in doubt because the case was sent back to a lower court.

That court can still order additional refunds for certain taxes collected by the state.

The governor's Chief Legal Counsel Glenn Norton...

Actuality:norton1.wav
RunTime: 15
OutCue:
Contents: Norton says it is possible the lower court could order more refunds meaning a possible trip back to the Supreme Court.

Norton says construction projects at the state's universities are still on hold because of the uncertainty about what will happen in the case.

Senate Budget Chair Marvin Singleton says it's important to keep a wait-and-see approach.

Actuality:sing1.wav
RunTime: 7
OutCue:
Contents: Singleton says it is important that the state waits to see where it is at before spending the capital improvement budget.

Singleton says the state doesn't have a lot of choice on where it can freeze funding.

Actuality:sing2.wav
RunTime: 23
OutCue:
Contents: Singleton says that, if necessary, construction can wait a year, but, he says the services the state provides can't.

That would mean more than one hundred million dollars in university construction projects put on hold indefinitely.

The Governor's Legal Counsel Glenn Norton says the problem is actually the Hancock Amendment itself.

Actuality:norton2.wav
RunTime: 42
OutCue:
Contents: Norton says the state has to run in a way no one would run their household.

Voters approved the Hancock Amendment in 1980 as a way to limit government growth.

If the state's revenue grows at a rate that is much higher than the income of the average Missourian, the state has to issue refunds to taxpayers.

For Missouri Capital Caucus, I'm Aaron Cummins.


A Missouri Supreme Court ruling today/Thursday handed Gov. Bob Holden's administration a major victory against heightened budget problems. Aaron Cummins has the story from Jefferson City--

Story:
RunTime:
OutCue: SOC

The High Court ruled the state doesn't owe taxpayers an additional 244 million dollars in Hancock tax refunds.

But, the case was sent back to a lower court for further hearings that could still lead to refunds for taxpayers.

Holden's Chief Legal Counsel Glenn Norton says that means the state's budget situation is still in doubt.

Actuality:norton4.wav
RunTime: 10
OutCue:
Contents: Norton says it would be foolish to think this ruling allows the state to go forward on capital improvement projects.

Construction projects at the state's universities have been suspended as the Holden administration tries to find a solution for the state's 300 million dollar budget shortfall.

From the state capital, Aaron Cummins, KMOX-News.



Story:
RunTime:
OutCue: SOC

This is Aaron Cummins for Missouri Capital Caucus.

Missouri's budget shortfall was spared a further hit when the Missouri Supreme Court ruled that the state doesn't owe 244 million dollars in additional tax refunds.

The High Court's ruling means the budget shortfall remains at about 300 million dollars for the time being.

But, the future of the budget is in doubt because the case was sent back to a lower court.

That court can still order additional refunds for certain taxes collected by the state.

The governor's Chief Legal Counsel Glenn Norton...

Actuality:norton1.wav
RunTime: 15
OutCue:
Contents: Norton says it is possible the lower court could order more refunds meaning a possible trip back to the Supreme Court.

Norton says construction projects at the state's universities are still on hold because of the uncertainty about what will happen in the case.

Senate Budget Chair Marvin Singleton says it's important to keep a wait-and-see approach.

Actuality:sing1.wav
RunTime: 7
OutCue:
Contents: Singleton says it is important that the state waits to see where it is at before spending the capital improvement budget.

Singleton says the state doesn't have a lot of choice on where it can freeze funding.

Actuality:sing2.wav
RunTime: 23
OutCue:
Contents: Singleton says that, if necessary, construction can wait a year, but, he says the services the state provides can't.

That would mean more than one hundred million dollars in university construction projects put on hold indefinitely.

The Governor's Legal Counsel Glenn Norton says the problem is actually the Hancock Amendment itself.

Actuality:norton2.wav
RunTime: 42
OutCue:
Contents: Norton says the state has to run in a way no one would run their household.

Voters approved the Hancock Amendment in 1980 as a way to limit government growth.

If the state's revenue grows at a rate that is much higher than the income of the average Missourian, the state has to issue refunds to taxpayers.

For Missouri Capital Caucus, I'm Aaron Cummins.