More on Missouri Budget Woes

From today’s SBJ (emphasis is mine):

The state budget is in trouble, and changes are being recommended for next fiscal year as well as the current budget.

That was the message from two separate announcements on Thursday by the state of Missouri.

Gov. Jay Nixon was in Springfield Thursday speaking during a meeting of the Springfield Business Development Corp., the economic development arm of the Springfield Area Chamber of Commerce.

Nixon said that lagging state revenues are forcing the state to cut $500 million from the budget for fiscal 2011, which begins July 1.

"Three months after we prepared next year’s budget, our economic models are becoming clearer," Nixon said in his presentation. "While our state economy is starting to tick upward, state revenue is not. And it probably won’t for some time."

To cut $500 million in spending, Nixon proposed eliminating 1,000 state jobs, selling 2,000 cars from the state fleet, and cutting three state holidays from the government calendar.

He also proposed streamlining several government departments – including combining the Department of Elementary and Secondary Education with the Department of Higher Education and consolidating the Highway Patrol and the Water Patrol – as well as re-examining some state tax credits.

"We have a real opportunity to transform our government, and to streamline its operations," Nixon said in his presentation. "Yes, that means we are going to do fewer things. But we are going to do them more efficiently and more effectively, and with greater accountability to the taxpayers."

The budget issues also affect the current fiscal year, according to a news release from State Budget Director Linda Luebbering.

Year-to-date state revenues are down 12.7 percent from last fiscal year, according to the release, and Nixon has asked the legislature to develop a new revenue estimate, with preliminary figures indicating a $126 million expenditure restriction is necessary this year. 

According to the release, the state plans to take money from the budget stabilization fund to pay state income tax refunds, because taxpayers who expect to receive money usually file their tax returns before those who expect to owe. The fund will be repaid later in the year with money from taxpayers who owe money.