Nixon Withholds $400 Million, Goes into Effect Monday

2 years 11 months 9 hours ago July 01, 2013 Jul 1, 2013 Monday, July 01 2013 Monday, July 01, 2013 7:49:00 AM CDT in News
By: Jen Lask

JEFFERSON CITY - Myriad state functions from higher education to law enforcement endured marked cuts as Missouri's 2014 budget went into effect on Monday with more than $400 million missing.

On Friday, Gov. Jay Nixon announced he would restrict $400.7 million from the new budget. This means that portion of the budget cannot be spent until Nixon chooses to release it, regardless of how lawmakers previously chose to allocate the funds. The cuts include nearly $100 million to building construction and repair in the mid-Missouri area. One of the building cuts eliminates a $13 million project to reconstruct Fulton State Hospital. Additionally, the cuts include $66.4 million to transportation, $45.7 million to Medicaid provider rate increases, and the elimination of 1000 state government jobs.

Nixon also vetoed four items, worth $1.14 million total.

Nixon cited House Bill 253, which he referred to as a "fiscally irresponsible, ill-conceived" piece of legislation, as the reason he would be withholding parts of the budget. HB 253 proposed decreasing the state and individual corporate tax rates in phases throughout the next ten years. The bill would phase in a 50 percent business deduction and a 0.5 percent individual income tax cut over 10 years. Additionally, the bill would impact the transportation development tax, tax amnesty, and the streamlined sales and use tax agreement.

The bill was first introduced in the House on January 22 by Reps. T.J. Berry, R-Kearney, and Tim Jones, R-Eureka. The House passed HB 253 on May 9, with 103 votes in favor of the bill and 51 votes against it. The bill was then sent to Nixon on May 30, and he vetoed the bill a week later.

"As lawmakers begin to understand the problems with House Bill 253 and their immediate and continuing consequences, I am confident that they will agree this bill should not become law," Nixon said during his news conference on Friday. "But no governor can responsibly manage a state budget on the assumption a veto will be sustained. That is why, given the additional spending appropriated by the legislature and the uncertainty created by House Bill 253, we must take action now to keep our state's fiscal house in order."

Senate Leader Tom Dempsey, R-St. Charles, released a statement in response to Nixon's withholding of $400 million. He accused Nixon of playing politics with Missouri's education, capital improvements and state services.

"There is absolutely no reason or need to withhold revenue," Dempsey said in a news release sent out by his office. "To date net General Revenue is up 10.2 percent over last year which should net $350 to $400 million over the FY 2013 revised consensus revenue estimate for the current FY 2013 budget. These funds are rolled into FY 2014. Using the withholdings to prevent a possible veto override of House Bill 253, which would lower our tax burden, is overstepping and holds the people hostage with their own money."

Higher education systems throughout the state are slated to lose access to $33.7 million as a result of Nixon's hold on the budget. Earlier in June, the UM system's governing body said it was "not opposed" to the tax cuts Gov. Jay Nixon vetoed.

During a UM Board of Curators meeting, the UM Curators tweeted that President Tim Wolfe "is not opposed to tax cuts as long as we are completing the equation for general revenue and funding for education." The Curators' Twitter account followed that tweet by noting that "potential shortfall in state revenue could lead to 10 percent decrease in state funding. Shortfall would equate to an increase in tuition of 8-16 percent."

In an email, the UM System's Chief Communications Director, John Fougere, said the UM System would have to consider raising tuition to compensate for a loss in state funding.

"If we did not steeply raise tuition, we would have to look at possibilities such as cuts in our workforce, decreased wages or even enrollment caps," Fougere said.

If state lawmakers attempt to override Nixon in September, they would require 109 affirmative votes in the House and 23 in the Senate.

 Below is a complete list of the FY 2014 Budget Restrictions

More News

Grid
List
TIPTON - Family and friends gathered outside at a local park Tuesday night to honor 18-year-old Robert Ashbaugh, who was... More >>
3 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 9:28:00 PM CDT in News
JEFFERSON CITY - The Tax Increment Financing (TIF) Commission held a meeting on Tuesday to set up an extended public... More >>
4 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 8:04:00 PM CDT in News
COLUMBIA - Memorial Day is just over, but the efforts to help the veterans community continue. The national Union... More >>
5 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 7:25:00 PM CDT in News
BOONE COUNTY - People with mental health problems are overrepresented in the U.S. criminal justice system, according to a new... More >>
5 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 7:09:00 PM CDT in News
ASHLAND - The school year just ended, but the Southern Boone School District is already looking ahead to next school... More >>
7 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 4:39:00 PM CDT in News
SPRINGFIELD (AP) — A southwest Missouri woman has been ordered to spend seven years and three months in federal prison... More >>
8 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 4:27:30 PM CDT in News
COLUMBIA – The Heart of Missouri United Way has invest money in 16 local programs that are addressing local poverty.... More >>
8 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 3:37:00 PM CDT in News
WILLIAMSBURG – Employees at a country store discovered a historical video of Fulton. Workers at Crane’s Store found a... More >>
8 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 3:32:00 PM CDT in News
JEFFERSON CITY - Memorial Day Weekend 2016 traffic crash, boat crash and intoxication numbers rose from 2015. The Missouri... More >>
9 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 3:25:00 PM CDT in Continuous News
JEFFERSON CITY (AP) — Missouri Sen. Claire McCaskill is pushing a bill she says is aimed at helping World War... More >>
9 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 2:57:00 PM CDT in Continuous News
ST. LOUIS (AP) — Saint Louis University officials say its law school is trying to redefine itself after moving locations,... More >>
9 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 2:43:04 PM CDT in News
ST. LOUIS (AP) — Bond has been set at $1 million for a former St. Louis police officer charged with... More >>
9 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 2:38:31 PM CDT in News
COLUMBIA - The Boone County Sheriff's Department Cyber Crimes Task Force arrested Jeremy Rogers, 40, for attempted sexual exploitation of... More >>
10 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 2:24:00 PM CDT in News
COLUMBIA - The University of Missouri hired a new vice chancellor of extension and engagement. Marshall Stewart, current director of... More >>
11 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 1:16:00 PM CDT in News
SPRINGFIELD (AP) — A Missouri woman who posted nude photos of a 15-year-old girl on Facebook has been sentenced to... More >>
11 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 12:30:00 PM CDT in News
COLUMBIA - The University of Missouri is introducing a new program training primary care providers in high quality care for... More >>
12 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 12:22:00 PM CDT in News
COLUMBIA – Convenience may outweigh the cost of expensive hospital bills when choosing care at an emergency room for non-emergencies.... More >>
12 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 11:59:00 AM CDT in News
CAPE GIRARDEAU (AP) — Cape Girardeau apparently hit the jackpot when it bet on opening a casino. City officials... More >>
14 hours ago May 31, 2016 May 31, 2016 Tuesday, May 31 2016 Tuesday, May 31, 2016 9:47:00 AM CDT in News
Columbia, MO
Broken Clouds 70°
1am 69°
2am 68°
3am 67°
4am 66°

Select a station to view its upcoming schedule:

Coming Up Next

11:37p
Late Night with Seth Meyers
12:37a
Last Call with Carson Daly
1:07a
The Insider
12:00a
Community
12:30a
The King of Queens
1:00a
The King of Queens

Tonight's Schedule

7:00p
American Ninja Warrior
9:00p
The Night Shift
7:00p
iHeartRadio Summer Pool Party 2016
8:00p
Supernatural
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld