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tax bill gets out of conference committee.

May 15, 1997
By: R. Scott Macintosh
State Capital Bureau

JEFFERSON CITY - After a two and half day deadlock, a House-Senate conference committee arrived at an agreement on the state's tax bill.

Rep. May Scheve, D-St. Louis, added the sixth and final signature to a tax bill that includes Governor Mel Carnahan's three cent state sales tax reduction on groceries.

"You can't sit there and hold out for everything," Scheve said.

Five conferees signed the bill after Senate members agreed to strike the provision for private school costs in return for the surrender of the governor's Challenge Scholarship Program.

Scheve, a supporter of the governor's program, had been adamant about her position not to endorse a bill without scholarships. She sponsored a separate bill that passed in the House on Wednesday, but has little support in the Senate.

"It came down to the wire on whether we were going to have the three cents," she said. "I was looking at my watch wondering what would happen to the people back home. I pretty much figured that the Challenge Scholarship Program was dead and if we were going to save something, it should be the three cents."

Among the three Senate members who signed the bill was Sen. John Scott, D-St. Louis, a staunch supporter of tax breaks for parents who send their children to parochial schools.

"We were working on this for three weeks and we reached a point where we couldn't get any further," Scott said. "We didn't want to be obstructionists with this."

The governor's three cent sales tax reduction covers only those grocery items that also are covered by the federal food stamp program.

In addition, the bill includes tax breaks for private pensions, medical oxygen and donations to maternities and domestic violence centers.

The tax bill will cut state tax revenues an estimated $250 million once it is phased in over six years.

"The governor is very pleased to have the conference committee report signed and the three cents moving forward," said Chris Sifford, a spokesman for Gov. Mel Carnahan. "We appreciate all the help we've received on this."

The legislature must complete action on the tax bill, along with dozens of other major issues, by 6pm Friday.

Another last-minute issue for lawmakers will be legislation to soften the impact of federal welfare reform.

The idea had been declared dead just a few days ago when it was rejected by the House Budget Committee.

But Thursday, Sen. Joe Maxwell, D-Mexico, resurrected the issue by tacking it on to another, unrelated bill in the Senate.

"The federal requirements are far too strict for the citizens living in poverty," Maxwell said.

Like the tax-cut bill, Maxwell's revived welfare bill will require approval by both the House and Senate before the 6pm adjournment of the regular session.

One-half hour later, at 6:30pm, the legislature's special session begins to finish work on those sections of the budget that were left undone by lawmakers.

The House Budget Committee has scheduled a session on those budget bills for Monday.