Nixon blocks $46 million in state spending to fix Missouri budget
JEFFERSON CITY (AP) — Gov. Jay Nixon said he's going to block the state from spending more than $46 million in order to balance the budget.
Nixon said the spending restrictions are needed because the state no longer can count on an anticipated $50 million from a tobacco settlement agreement.
The money is part of an annual payment that tobacco companies make to states under a 1998 settlement covering the costs of providing health care to those with tobacco-related illnesses.
Nixon and lawmakers banked on using the $50 million this fiscal year. But a recent appeals court ruling means that the companies don't owe Missouri that money.
Nixon cut funding for several new programs in response. He also restricted money for a number of planned health care provider rate increases.