October 29, 2009

Sales Tax Shortfalls Force State Cuts

In a press conference Wednesday, Gov. Nixon announced an additional $204 million in cuts in the state's budget as sales tax revenues continue to drop. Those cuts include the elimination of 700 jobs and cuts in a number of programs ranging from bussing aid to public schools to Medicaid to mental health programs.

When you are facing declining revenues over a prolonged period, these types of cuts are part of keeping budgets balanced as required by the State Constitution.

Many cities and counties across the state are feeling similar pains and with recovery still months away, things are very likely to get worse before they get better.

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