JEFFERSON CITY -- The Missouri Senate this week approved legislation that would cover the estimated $350 million deficit in the current budget year.

According to Sen. Anita Yeckel, R-Sunset Hills, the bill would allow for the issuance of $335 million in revenue bonds, with up to $150 million usable for the current shortfall.

"The Senate's budget plan makes a significant change from earlier proposals by employing revenue bonds repaid over time from the state's general revenue fund," said Sen. Yeckel. "Earlier versions relied on bonds repaid over time with tobacco settlement payments."

The move to revenue bonds includes a shortened payoff schedule - 25 years, rather than 37 - and a heightened bond rating as the issuance would not be backed by tobacco money, which many believe to be an unreliable funding stream. These two aspects of the Senate plan stand to save the state some $200 million in principal and interest costs.

Senators sent the measure to the House with an emergency clause, which allows use of the money in the current fiscal year. The House approved the measure on Thursday, and it will now be sent to the governor.

"Unfortunately, the bond funds coupled with a series of expense cuts agreed to by the legislature and the governor, still leave a budget hole about $80 million," Sen. Yeckel said. "The governor has indicated he will make the cuts to public school funding, while lawmakers are developing various proposals to balance the budget, which is required by the Missouri Constitution."

As it has been since the opening of the 2003 legislative session, the state budget is the primary issue for lawmakers and is expected to remain so through the end of session in May.

The Senate Ways and Means Committee on Tuesday heard testimony on a measure designed to streamline the various state health insurance programs. Over time, Senate Bill 450 would combine the different programs under a newly created division of Community Health.

"Many believe this consolidation would reduce administrative costs and increase the state's health insurance purchasing power," said Sen. Yeckel.

The Senate Transportation Committee this week approved a measure establishing an independent transportation inspector general to conduct investigations and audits relating to the operations of the Department of Transportation.

The inspector general would file a monthly report with the Joint Committee on Transportation Oversight and conduct performance audits every three years.

Senate Bill 481 would also prohibit Highway and Transportation Commission members from engaging in campaign-related activities, Sen. Yeckel said.

The full Senate will now take up the measure.