Last updated 8:14PM ET
May 24, 2012
KBIA Local
KBIA Local
State Budget Released, Additional $300 Million Withheld
(2010-06-17)
(KBIA) - Missouri Governor Jay Nixon is cutting another 300 million dollars from next year's budget. The governor is making withholds, as they are called in Jefferson City. They are not technically line-item vetoes, because the money being withheld can be restored if the state's revenue picture improves. They include $70 million from K-12 school transportation, more than $54 million from college scholarships, and a projected $47 million from tax credits. The governor says slowing down the process for approving tax breaks will provide the savings:

"There's 62 different programs across the line, and we will be analyzing all of those, but we want to continue to be able to have the flexibility to use tax credits that can create jobs."

There will also be deep cuts to social service and mental health programs.

Budget Director Linda Luebbering says 250 state jobs will also be eliminated.

"That is on top of the about 2200 that have already been reduced since January of '09. I believe that there will be some layoffs."

Luebbering says, though, that most of the job cuts should come from eliminating vacant positions. She also expects the funding withholds will be permanent, despite a recent uptick in state revenues.
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