CHICAGO -Missouri Gov. Jay Nixon cut $800 million in spending from the fiscal 2015 budget, warning the cuts were needed to keep the budget balanced due to the threat that lawmakers might restore a series of vetoed tax breaks.
Nixon vetoed $144.6 million in general revenue spending and restricted spending on another $641.6 million in general revenue expenditures under his withholding powers that give the governor authority to align revenues and expenditures. The budget for the fiscal year beginning July 1 totals $26.4 billion.
"These actions are not easy, but they are absolutely essential to putting the budget back in balance and keeping the state on a fiscally responsible path," Nixon said in a statement.
Nixon cited the General Assembly's passage of tax breaks that he estimated would cut state revenue by up to $425 million and local government sales tax revenue by $351 million. Nixon recently vetoed those breaks but lawmakers could override him in the fall. Republicans who control the legislature successfully overrode the Democratic governor's veto of an income tax cut earlier this year.
The General Assembly's budget also depended on tobacco settlement payments that the state no longer expects and a tax amnesty that did not pass. The two add up to the loss of $102 million.
Lawmakers also approved funding for new programs and government buildings in the budget.
"While eroding our tax base with new loopholes for special interests, the legislature simultaneously littered the budget with earmarks and new government programs, demonstrating misplaced priorities," Nixon said.
Nixon's cuts could be restored if the tax break vetoes withstand a challenge.
