MSBA Voices Concern Over TABOR

The following is information posted by the Missouri School Boards' Assocation

HJR 23, commonly known as TABOR (Taxpayers Bill of Rights), is on the House calendar for debate. If passed this constitutional amendment would create an appropriations and revenue growth lid for the state that would be the sum of inflation plus population growth. The measure imposes a strict spending limit and threatens the ability of future legislatures to fund basic state services including elementary and secondary education, health services, higher education and public safety at an adequate level. The legislation slowly erodes the state’s ability to fund critical services and infrastructure needs that not only impacts the quality of life for all Missourians, but also the economic productivity of the state. TABOR is dangerous for Missouri because linking state spending to the inflation rate does not make sense. It does not capture the change in costs for the goods and services the state purchases, nor does it take into account changing population demographics or changes in the need for various services. The current estimates are that using a measure of Missouri population growth plus inflation as this resolution proposes to do would restrict appropriations growth to 2.5 percent to 3 percent per year. Limiting growth to this level will result in significant cuts to the state budget over time. Missouri already has a spending limit in the Hancock Amendment which restricts the growth in state revenue and thereby limits appropriations to the ratio of state appropriations to the level of personal income that existed in 1980. Supporters of the measure say it will keep taxes low and attract business. However, Missouri already has the lowest corporate income tax per capita among states that use this tax and also has numerous business-oriented tax credit programs. The cap on appropriations will not allow Missouri to make improvements in services for residents including for education and transportation infrastructure which are important to the business community. Please call and write your representative and tell him/ her to vote against HJR 23. For a list of representatives and their phone number please go to http://www.house.mo.gov/member.aspx.