House Speaker Catherine Hanaway of Warson Woods says action in Washington should change the dynamics of the special legislative session next week. Hanaway expects the state to receive $398-Million from the federal government as part of the tax cut package signed by President Bush. $208-Million must go to Medicaid, with $190-Million free for general purposes. And, Hanaway doubts Governor Bob Holden’s insistence that the tax cut package will cost the state $100-Million dollars because of the state tax system being coupled with the federal tax rates. Hanaway says the Governor now has less of a case than ever to increase taxes, something she doubts the Legislature will even consider in the special session. She says she hopes the federal money will provide the Legislature a few more dollars with which to work The Governor rejected the budget bills funding health, mental health, social services, higher education and public schools. The Legislature will take up those bills and a revenue package proposed by the governor during the special session.
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