Nixon projects $600 million shortfall for budget

JEFFERSON CITY, Mo. (AP) -- Gov. Jay Nixon's administration is projecting a $600 million shortfall for Missouri's 2012 budget.

The shortfall is due primarily to the phase-out of $860 million of federal stimulus funds that are being used in the current budget.

The memo from Nixon's administration said departments should consider the $280 million of program cuts announced last month to be permanent.

It said they should offset any mandatory spending increases with cuts elsewhere when submitting their 2012 budget requests.

The 2012 budget year starts in July 2011.