Nixon blocks $46 million in state spending to fix Missouri budget

4 years 1 month 3 weeks ago Monday, October 19 2015 Oct 19, 2015 Monday, October 19, 2015 3:53:01 PM CDT October 19, 2015 in News
By: The Associated Press

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.

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