Missouri Gov. Jay Nixon announced the state would cut 700 positions, Medicaid payments, and school transportation funds to trim $204 million from the $23.7 billion budget for fiscal 2010.
The state will cut $32 million from its Medicaid payments to hospitals, nursing homes, and other providers and nearly $16 million in transportation school funding. Officials previously cut $430 million from the budget.
“These restrictions have become necessary due to declining state revenues caused by the ongoing national economic downturn,” Nixon said. Revenue collections were down 10% over last year for the first quarter of the fiscal year.
Officials said the cuts would spare general education and higher ed funding.
