State Agencies Warned of End of Federal Money

7 years 9 months 4 weeks ago Wednesday, July 21 2010 Jul 21, 2010 Wednesday, July 21, 2010 6:38:15 PM CDT July 21, 2010 in News

Stabilization money is part of the federal stimulus money given to states as part of the American Recovery and Reinvestment Act.

Lubbering said although the money is going toward health and education, the loss in funds will affect agencies across the state.

"Those [stabilization] dollars actually help everybody, because those dollars are available to help us spend for health care and education, it overall helps alleviate the pressure on the overall budget and so everyone that has general revenue or general revenue 'look-a-like' funds are impacted by the loss," said Luebbering.

Luebbering said the shortfall means state agencies should begin to prepare for the $280 million cut Governor Nixon warned them about last month.

Luebbering said agencies should not request anything discretionary in their budgets, only mandatory needs.

"Would it be helpful if the federal government extended some of that money? Absolutely. But we can't plan on it and so we are just continuing the process that the governor and the legislature started early on, on phasing down to get our spending back down," said Luebbering.

The state has not decided where cuts will be made. Legislators will finalize the 2012 budget in the upcoming general assembly.

State agencies have until October 1st to submit their budget requests.

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