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      Gov. Nixon freezes state funds

      Governor Nixon announced the freeze Friday at the Capitol.


      No pay raises, no new construction and a thousand state jobs cut unless lawmakers back away from an override of Governor Jay Nixon's veto of their income tax cut legislation.


      On Friday, Nixon froze $400 million of spending for education, capital improvements and state services.


      He told capitol reporters the move is necessary to offset the revenues lost to a phased-in tax deduction for business income, and a reduced tax rate for individuals and corporations; and he says it's only the beginning.


      Governor Jay Nixon said on Friday, â??With a price tag of at least 800 million dollars annually, House Bill 253 would undermine our fiscal foundation now, and for years to come. House Bill 253 is simply a dangerous experiment we cannot afford.â??


      Nixon said he cannot enter a new budget year on Monday uncertain of whether his veto of House Bill 253, the income tax cut, will survive. So he's ordered an across-the-board, 4% reduction in core spending. Heâ??s also eliminated almost all new spending including $150 million in additional spending for education, increases in payments to Medicaid providers, money to repair the state capitol building and $14 million worth of pay raises for state workers.


      Nixon said, â??These restrictions represent only a fraction of what would be required if House Bill 253 becomes law.â??


      Which is why Nixon has asked the state budget director to plan for substantial additional layoffs of state workers.


      State Budget Director Linda Luebbering said, "We don't have specifics on that, and won't for quite some time. I'll be working with the departments to develop a plan to cut another thousand positions out of state government.â??


      State officials are still waiting for a ruling from the Missouri Supreme Court on whether the Governor can withhold appropriated money when their is no shortage of revenue.


      In a written statement, House Speaker Tim Jones Friday afternoon said Nixon has violated the constitution by doing so. The republican called the withholds a "political stunt" and blasted Nixon for using Missouri families as pawns in a chess match with the legislature.


      DEPARTMENT -- APPROPRIATED AMOUNT (in millions) -- AMOUNT FROZEN (in millions)


      Statewide Pay Plan -- $14.0 -- $14.0

      Statewide State Government Employees (1000 FTE) -- N/A -- $15.6

      Statewide Expenses/Core Programs (4 percent) -- $136.6 -- $6.0

      Elementary and Secondary Education Foundation Formula and Transportation (level fund) -- $3,175.6 -- $66.4

      Elementary and Secondary Education Scholars and Fine Arts Academy -- $0.2 -- $0.2

      Elementary and Secondary Education Regional Professional Development -- $1.0 -- $1.0

      Elementary and Secondary Education Early Grade Literacy Program --$0.1 -- $0.1

      Elementary and Secondary Education Bright Futures Program -- $0.1 -- $0.1

      Elementary and Secondary Education Vocational Rehabilitation Program (increase) -- $13.6 -- $0.5

      Higher Education Institutions Core funding (4 percent) -- $841.9 -- $33.7

      Higher Education UM-Related Programs (4 percent) -- $16.2 -- $0.6

      Higher Education MSU Occupational Therapy Program -- $1.3 -- $1.3

      Higher Education UM/MSU Cooperative Medical Program -- $10.0 -- $10.0

      Higher Education MSU/Three Rivers Trade School in Willow Springs -- $0.2 -- $0.2

      Higher Education UM Large Animal Veterinary Program -- $1.0 -- $1.0

      Revenue Assessment Maintenance (4 percent) -- $9.8 -- $0.4

      Transportation Amtrak (4 percent) -- $8.9 -- $0.4

      Transportation Port Authority Capital Improvements -- $3.0 -- $3.0

      Transportation St. Charles Bike/Pedestrian Bridge -- $0.1 -- $0.1

      Transportation Transit (increase) -- $1.1 -- $0.5

      Agriculture Biodiesel Incentive (4 percent) -- $5.5 -- $0.2

      Economic Development Customized Training (4 percent) -- $14.0 -- $0.6

      Economic Development Small Business Fairness Board -- $0.1 -- $0.1

      Economic Development Exports Initiative (portion of increase) -- $2.3 -- $0.5

      Economic Development MO Technology Corporation (1/2 of increase) -- $6.4 -- $2.5

      Economic Development Small Business Technology and Development Centers -- $0.7 -- $0.7

      Economic Development WWI Memorial -- $0.1 -- $0.1

      Economic Development Tourism (4 percent) -- $14.1 -- $0.6

      Various Arts, Libraries, TV, Historical, Humanities (4 percent) -- $7.6 -- $0.3

      Public Safety Cyber Crimes (Portion of GR increase) -- $1.5 -- $0.5

      Public Safety Drug Task Forces (4 percent) -- $2.0 -- $0.1

      Corrections St. Louis Re-entry Program -- $0.8 -- $0.8

      Corrections County Jail Reimbursement (4 percent) -- $38.1 -- $1.5

      Mental Health Alcohol and Drug Abuse Ex-Offender Treatment -- $1.0 -- $1.0

      Mental Health Community Providers (non-Medicaid) (4 percent) -- $61.2 -- $2.1

      Health and Senior Services AAA's (4 percent) -- $11.0 -- $0.4

      Health and Senior Services Area Health Education Centers (increase) -- $0.5 -- $0.3

      Health and Senior Services Local Public Health Agencies (increase plus 4 percent) -- $2.3 -- $0.7

      Health and Senior Services Naturally Occurring Retirement Communities (increase) -- $0.2 -- $0.1

      Health and Senior Services Traumatic Brain Injury Services (increase) -- $0.9 -- $0.6

      Health and Senior Services School Vaccines Programs -- $0.2 -- $0.2

      Health and Senior Services Mobile Dental Program -- $0.2 -- $0.2

      Social Services Foster Care Outdoor Program -- $0.1 -- $0.1

      Social Services Social Innovation Grants -- $1.0 -- $1.0

      Social Services Hand Up Program -- $0.04 -- $0.04

      Social Services Rural Health Clinics--Dental Program -- $0.5 -- $0.5

      Social Services Telemonitoring Program -- $0.1 -- $0.1

      Social Services Pager Pilot Program -- $0.2 -- $0.2

      Social Services Diabetic Telemonitoring Program -- $0.1 -- $0.1

      Various Medicaid Provider Rate Increases -- $45.7 -- $45.7

      Capital Improvements Facilities Maintenance and Repair -- $70.0 -- $65.0

      Capital Improvements New State Office Building -- $38.0 -- $38.0

      Capital Improvements State Capitol Complex -- $50.0 -- $46.5

      Capital Improvements Fulton State Hospital Redesign -- $13.0 -- $13.0

      Capital Improvements Sullivan County Lake -- $4.0 -- $4.0

      Capital Improvements State Parks -- $20.0, $17.5


      Here are the budget vetoes released by Nixon's budget office.


      DEPARTMENT -- VETOED ITEM BUDGET (in millions) -- AMOUNT VETOED (in millions)


      Economic DevelopmentSpringfield Community Improvement District (GR) -- $0.03 -- $0.03

      Economic Development Blues in Schools (Arts Trust Fund) -- $0.08 -- $0.08

      Mental Health Boone County Payment (GR) -- $0.03 -- $0.03

      Capital Improvements Pike Lincoln Tech Center (Fair Share Fund) -- $1.0 -- $1.0

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