Capitol Perspectives: The lost art of compromise

Members of Congress and the U.S. president might want to look to Missouri for lessons about the consequences of holding a government budget hostage to achieve a legislative objective.

In 2003 an example arose when a Missouri governor’s budget blackmail probably contributed to his re-election defeat. For another governor, a budget compromise avoided a potential political disaster.

The 2003 budget battle arose when Gov. Bob Holden presented to the legislature a budget to expand various government programs well beyond what state tax collections could cover. To fund those spending increases, Holden proposed what would have been one of the state’s largest tax increases.

But the Democratic governor had a problem. Republicans who opposed tax increases controlled the legislature. So, it was no surprise they rejected a budget based on higher taxes.

Holden refused to back down. The Missouri governor vetoed the smaller budget and called lawmakers back into an immediate special session to reconsider the tax increase to fund his larger budget.

Holden’s plan got little consideration by the legislature which ignored his tax hike idea and simply passed the identical lower budget the governor had rejected.

In response, Holden again vetoed the budget and called lawmakers back into a second special session. But his refusal to budge got him nowhere.

When the legislature again rejected the governor’s tax hikes and larger budget, Holden caved and signed the legislature’s no-tax-increase spending plan. The Democratic governor’s tax-and-spend legacy haunted the remainder of his administration.

A year later when he presented his budget plan to lawmakers in the formal “State of the State” address, the House GOP leader shouted out “Release the money, Governor!” in objection to Holden’s withholding a portion of education funding to put pressure for higher taxes.

It was the first time in nearly one-half century I can remember a legislator shouting at a governor in the middle of the formal State of the State address. But it was an indication of how deeply Holden had damaged his ability to work with the legislature by his refusal to seek a middle ground.

The continuing budget and tax controversy spelled the end of Holden’s administration. Later that year, in 2004, he decisively lost the Democratic primary to Claire McCaskill, who narrowly lost the gubernatorial election to Republican Matt Blunt.