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Senators Endorse New Budget Plan

By AP/KWMU

Jefferson City, Mo. – Missouri Senators endorsed a new way of solving the state's budget troubles Wednesday.

However, the measure still could result in an $82 million gap, which Governor Holden says he would cover with education cuts.

The bill calls for issuing revenue bonds to lessen the shortfall for the fiscal year that ends June 30th. The bonds would be backed by general tax revenues.

Senators wrote their proposal into a House-passed bill, which would cover the shortage with bonds backed by future tobacco settlement money.

The revised bill goes back to the House, which could ask for a conference committee.

Revenue bonds result in long-term savings because they carry less risk to buyers than bonds backed by the tobacco settlement.

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