Missouri Gov. Jay Nixon is expected in coming weeks to announce cuts in the $23 billion operating budget for fiscal 2010 due to new estimates showing revenue could fall up to $370 million short of previous estimates.
The new estimates that show income and sales taxes declining were presented by budget director Linda Lubbering. They show a projected revenue decline of $7.4 billion in the next fiscal year, which begins July 1. The governor could tap some of the state’s federal aid but he is expected to instead rely heavily on cuts.
Luebbering said the cuts would likely exclude education, health care and prison spending. As part of the deficit reduction plan, the state would likely cut additional state jobs. Nixon cut about 1,300 positions in the fiscal 2010 budget.
