CHICAGO -Missouri Gov. Jay Nixon is reviewing the $26 billion fiscal 2016 budget lawmakers sent him two weeks ahead of the state constitution's mandated deadline.
"Missourians deserve a state budget that is balanced, fiscally responsible and consistent with our values of supporting education and protecting our most vulnerable citizens," Nixon said in a statement late last week. "We will give the budget a careful, line-by-line review and take any actions necessary to ensure we maintain our strict fiscal discipline, protect our AAA credit rating and grow our economy."
The Democratic governor has 15 days to decide what action to take on the 13 bills in the budget package.
The quick clip at which the GOP-controlled legislature signed off on the spending plan gives the majority more time to act on possible overrides of any of Nixon's potential vetoes ahead of a May 15 adjournment date. In the past, overrides more often have been attempted in a fall veto session. A two-thirds majority vote is required to override.
The final budget plan sent to Nixon was the result of negotiations between the House and Senate that settled differences over spending levels. The final pact cuts funding for the Department of Social Services budget while increasing public education funding levels.
In one difference from Nixon's proposal, the legislature approved $84 million more for the kindergarten to 12th grade foundation funding formula. Nixon had proposed a $50 million increase. The education funding still falls about $440 million short of what is supposed to go toward education under state law.
The budget includes no new borrowing capacity but allows the state to begin drawing on existing bonding authority to fund more than $300 million in projects at state facilities and public higher education institutions.
While still in session, it's unclear whether any action is coming on transportation. Transportation officials have warned of the dire need for a new funding stream. A bill that would raise the gasoline tax by two cents has stalled and leaders have said it's unlikely to move forward during the current session.
Nixon has offered up several options without endorsing any specific one. They included installing tolls on Interstate 70 to cover the rebuilding and expansion project's costs, freeing up funds for other projects. He also floated a gasoline tax hike.
Faced with dramatically reduced funding and a construction budget of $325 million in fiscal 2017, Missouri will not be able to match federal transportation funds, officials have warned. At least $485 million is needed just keep roads and bridges in their current condition.
The state will focus on primary routes to keep them in their current condition with supplemental routes expected to deteriorate as they receive limited maintenance.
"While the funding discussion moves forward with our citizens and legislators, the needs of the system continue to grow," said Roberta Broeker, the Missouri Department of Transportation's chief financial officer and interim director.
Rating agencies last year affirmed Missouri's triple-A ratings. They also warned they are watching to see how the state deals with income tax cuts and what future action the legislature might take to challenge the governor's budget withholding powers, which were weakened in a voter-approved referendum in November.
The state closed out fiscal 2014 June 30 with revenue collections of about $8 billion, down 1% from the previous year, and slightly below projections, but Standard & Poor's noted that reserves remain fully funded at $557 million. The state also held a general fund reserve of $222 million.
Nixon has proposed public financing assistance for a new stadium for the St. Louis Rams professional football team but it's not part of the budget. The St. Louis public agency helping in efforts to get a stadium built to keep the team from moving to California is seeking clarity from the courts over whether the city can contribute financially to the project without a public vote.
