By Marshall Griffin, St. Louis Public Radio
Jefferson City, Mo. – A bill that would give the Missouri General Assembly control over almost every state tax credit is being considered by the State Senate.
The bill's supporters, including State Senator Chuck Purgason (R, Caulfield), say giving lawmakers control over the size of each tax break would ensure that they can set aside enough money to fund education, health care and other critical needs.
"When you're facing a $1.4, $1.5 billion budget deficit in (2012), when you sitting there trying to make a decision whether to cut Medicaid, not fund the formula (for K-12 schools), or issue tax credits, I think that's an issue that we need to make," Purgason said.
Purgason's comments came during a hearing before the Senate Committee on Governmental Accountability and Fiscal Oversight, which he chairs.
Purgason is also running for the U.S. Senate.
The bill's opponents say it could strip millions of dollars from programs that create jobs and provide services to the needy. Lobbyist Jim Moody says many of the tax credits in question have been helping needy Missourians for years.
"Whereas, someone in a market rate might have to pay a rent of, say, $700-750, the tax credits involved in these programs might reduce that rent to, say, $350-400 for an elderly person," Moody said.
The bill's sponsor, State Senator Jason Crowell (R, Cape Girardeau), says the state is facing a budget shortfall in the year 2012 and may have to choose between giving out tax credits and having enough money for education and health care.
The committee is expected to vote on the bill at a later date.