Nixon signs FY 2014 budget, withholds $400 million of spending
Missouri’s state budget for the fiscal year that begins Monday has been signed into law, but Gov. Jay Nixon also announced that he will withhold more than 400 million dollars in funding for several state needs. He told reporters Friday that the tentative cuts would become permanent if Republican lawmakers override his veto of their tax cut bill. Budget Director Linda Luebbering says Nixon's cuts includes cancelling pay raises for state workers as well as eliminating state jobs.
“We don’t have specifics on that, and won’t for quite some time,” Luebbering said. “I’ll be working with the departments to develop a plan to cut another thousand positions out of state government.”
The cuts also include $66 million from K-through-12 schools, and the entire Medicaid provider rate increase of nearly $46 million is being zeroed out. Luebbering says it’s possible some cuts could become permanent even if the tax cut veto is not overturned, but told reporters that the Governor would restore the K-through-12 funding as soon as possible. Republican lawmakers are calling the Governor’s actions unconstitutional and a political stunt.