Nixon calls for cuts in State of the State

After touting Missouri's fiscal efficiency in last night's State of the State address, Gov. Jay Nixon proposed a reduction of the state's payroll by more than 800 positions and additional cuts in education and other sectors for fiscal 2013.

"The national recession, and the gridlock in Washington, created tough budget times for all the states," Nixon said in the address, a full transcript of which can be found on the governor's Web site.  "Unlike Washington, we've maintained our strict fiscal discipline and balanced our budget, and we've done it without raising taxes."

The governor is recommending annual operating budget of $22.98 billion, down from $23.2 billion in fiscal 2012.

The proposed budget's cuts include:

• $191.7 million in Medicaid;
• $89 million for four-year higher education institutions;
• $29.3 million in staff and administrative cuts, including a reduction in the governor's office budget;
• $16.9 million for community and technical colleges;
• $7 million in biodiesel subsidy payments; and
• $2 million in local public health agency grants.

In Nixon's proposed budget, $99.8 million would be spent on K-12 transportation and $105.5 million would be used to maintain programs such as A+ and Bright Flight. The budget earmarks $23.6 million for a 2 percent salary increase for state employees, effective Jan. 1, 2013, and it also provides an additional $2.2 million for the Partnership for Hope program, among others.

The proposal budgets for more than $7.5 billion in net general revenue, a 3.9 percent increase.

The budget will be passed to the Missouri General Assembly for review. It will be passed back to the governor's office in May.

To view the proposed budget, visit the Office of Administration's Web site.[[In-content Ad]]