Two lawmakers are urging Governor-elect Jay Nixon to dip into Missouri’s $550 million of reserves to help cover an estimated $340 million budget deficit in order to avoid deeper spending cuts.
The request was made in letters to Nixon from Rep. Jamilah Nasheed and Sen. Jeff Smith, both St. Louis Democrats. The two wrote that the purpose of establishing the fund was to cover deficits during tough economic times and that its use was preferable to spending cuts to education and social services.
Nixon has said he plans to implement a temporary freeze on some new state contracts and will review pending construction projects in an effort to save money. The projection of a $340 million shortfall came from Nixon’s advisers.
Current Gov. Matt Blunt, a Republican who did not seek re-election, has not said whether he believes there is a shortfall in the current budget.
Under state law, lawmakers can tap the reserves to cover appropriated expenses if the governor cuts expenditures or in the event of a disaster in which the governor proclaims there to be an emergency.
A two-thirds vote of the legislature is required to use reserve funds, and repayment must begin the next year.
