Treasurer upset by plan to divert funds

Steelman is publicly denouncing Senate Bill 269, which would divert tax money from the state’s general revenue fund into a separate fund for sports facilities and hospitality costs related to urban redevelopment projects.

Missouri currently charges 2 percent tax on salaries paid to entertainers and athletes from other states who perform or play in Missouri. The new legislation would take that money out of general revenue and put it in a separate fund.

After paying small percentages to the state’s libraries and public television stations, the fund would be split among sports authorities in St. Louis, Kansas City and, to a lesser degree, Springfield and Joplin.

“The state of Missouri should not be cutting hospital coverage for senior citizens to pay for ballparks or for urban redevelopment hospitality costs,” Steelman said in a news release.

Steelman also expressed concern about fiscal calculations to estimate the financial impact of the bill on the state’s general revenue fund. The current estimate, prepared by the Oversight Division of the Joint Committee on Legislative Research, placed the cost estimate at “$0 to unknown.”

Financial analysts in Steelman’s office recalculated the estimate based on what athletes and entertainers paid over the last five years. At the current growth rate of 7.4 percent, calculations show the tax would generate $36 million by 2010, $48 million by 2014 and $98 million by 2024.

“As the state treasurer, I have a responsibility to advise Missouri’s citizens about issues that affect their tax dollars,” Steelman said. “We shouldn’t be earmarking tax dollars to subsidize ballpark village property developments while telling veterans, senior citizens and the poor that we don’t have enough money to help them.”

The Senate passed SB 269 April 6. It is now being considered in a House committee.