Missouri State University President Clif Smart is among those at odds with Gov. Jay Nixon's decision to withhold some $1 billion from the state's fiscal 2015 budget as the General Assembly's veto session approaches.
"We're very disappointed with the withholdings announced this morning by Gov. Nixon, especially the extent of the withholdings as well as their timing," Smart said during a June 24 news conference at the downtown Meyer Alumni Center. "Our fiscal year begins July 1. We just approved our budget on Friday of last week. University of Missouri approved their budget on Thursday of last week. We both obviously built into those budgets the new money that was coming to us through state appropriations."
At MSU, the board of governors factored in a 5.2 percent increase in state appropriations when approving the school's $263 million budget.
With Nixon's withholdings, MSU would lose out on $4 million of appropriations. Additionally, the budget withholdings include funding for MSU's fledgling occupational therapy program, for which the university is planning an
estimated $17 million building. Also, MSU's roughly $4 million welcome center could be affected if funding isn't released, as the center was to be funded 50 percent by state money. However, Smart said it wouldn't be difficult to shore up funding for the center, if state money doesn't come through.
Smart said he was confident some of the withheld money would be returned to the state's budget at a later date.
"Despite the bad news, there still is no reason to panic. We anticipate some of the money will be released following the veto session, just as occurred last year," Smart said. "In the meantime, we will continue to talk to our elected representatives about the status of some of the sales tax exemption bills, which is obviously one of the reasons the governor gave for the withholdings."
In announcing the withholdings yesterday, Nixon said the move was necessary to keep the state's budget in balance after bills passed near the end of the session tipped the scale.
He cited Senate bills 693, 584, 612, 860, 727, 662 and 829, and House bills 1865, 1296 and 1455, which he said contained tax breaks for a variety of industries that would reduce state revenue by up to $425 million annually.
"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 and a stunning lack of fiscal restraint,” Nixon said in the release. “It’s one of the most basic principles of responsible fiscal management: You can’t spend more than you take in. Deficit spending might be the norm out in Washington, D.C., but it is not how we operate here in Missouri.”
Nixon also cited the General Assembly's inaction on Medicaid expansion.
He did not directly mention Senate Bill 509, tax-cut legislation he vetoed but the General Assembly voted to override, making it law. When a similar bill was vetoed by Nixon last year, and the legislature made plans to override his veto, the governor
threatened to withhold some $400 million from the state's budget. That bill ultimately was not overridden.
Yesterday, the Missouri Chamber of Commerce and Industry called the latest withholdings a case of deja vu.
“The governor is putting politics ahead of policy, once again, and it is getting old,” Missouri chamber President and CEO Dan Mehan said in a news release. “It’s petty and only hurts the students he claims he is trying to protect.”
Other organizations released statements of protest were Associated Industries of Missouri and various state representatives.
The annual veto session begins Sept. 10.[[In-content Ad]]
