JEFFERSON CITY - The state's plan to effectively mortgage the 1998 tobacco settlement for some quick cash is still on hold. At a meeting Thursday, the Tobacco Settlement Finance Authority was told the state could save money by selling the bonds through the state Board of Public Buildings.
By pursuing this "hybrid" plan, the state could save $100 million to $150 million over the expected 20-year life of the bonds, said Jim Carder of the state division of accounting. The bonds could be ready by February or March, Carder said.
JEFFERSON CITY - Senator Michael R. Gibbons has prefiled legislation to replace Missouri's current income tax system with a single-rate tax.
The state of Missouri presently imposes a broad-based income tax. A broad-based income tax imposes greater taxes on those with higher incomes and lower taxes on those with lower incomes. If the single-rate tax is approved all individual incomes will be taxed 4 percent.
JEFFERSON CITY - The legislature is prohibited from raising taxes more than $75 million without voter approval. With a half billion dollar budget deficit looming, that means steep spending cuts lie ahead.