JEFFERSON CITY, Mo. — Gov. Jay Nixon met with reporters today to discuss his line item vetoes and budget withholds, which he says is necessary to balance the state’s FY2015 budget. In a frustrated speech, Nixon said that the “budget is dangerously out of balance” and his office has determined that the budget is $786 million out of balance. He vetoed $144.6 million general revenue spending line items and restricted $641.6 million in general revenue expenditures.
“We saw a complete breakdown in the legislative and budget process,” Nixon said, referring to the programs and tax cuts passed during the last week of session, which he contends contributed in throwing the budget off.
Republicans in the legislature and the governor disagreed on consensus revenue estimates (CRE) — the manner by which lawmakers predict growth in the coming year to allocate funds accordingly — and Nixon ultimately refused to concede to the Republican position. State revenues have not met either the legislative or gubernatorial budget estimate for growth, as revenues have grown smaller than either party expected.
The proposed Republican legislative budget accounted for smaller growth than the Governor’s estimates, which Republicans chided during the legislative session as being excessively optimistic. Republican lawmakers estimated about 2 percent growth in contrast to the Governor’s 3 percent. Sluggish state revenues will bring the final number closer to the Republican-backed estimate. Although Nixon considers the CRE’s from earlier this year “irrelevant,” he got into a heated exchange with one reporter who asked about the glaring differences in the two estimates.
“What’s the difference? There is no difference! It is the same,” Nixon said repeatedly.
Over $144.1 million was cut from the budget through line item vetoes, according to the governor’s speech. Though the governor could not give an amount for his line item vetoes or a comprehensive list, he made it clear that he will be withholding budget increases to education, which he will release if tax break vetoes are not overridden during September’s veto session. As of today, there are 10 legislative packets that will be visited during veto session.
Nixon specifically mentioned budgetary restrictions to the foundation formula, as well as the closing of several DMV offices throughout the state. There will be the elimination of 216 state jobs, but the governor could not say what would happen with those employees and positions.
“This will require cuts in every aspect of the budget,” Nixon said.
Sources from within several of departments overseen by Nixon said that in the last week, they have received briefings on what to expect with withholdings and cuts.
“We need to have a leaner government that provides core services to Missourians in an effective way,” Nixon said, going on to say that the legislature creating more programs, as he contends they did on the last day of session, is expanding government.
The governor cited a laundry list of issues with the legislative actions from the past session to have impacted the budget, from tobacco settlement money to Medicaid expansion.
Rachael Herndon was the editor at The Missouri Times and also produced This Week in Missouri Politics, published Missouri Times Magazine, and co-hosted the #MoLeg podcast. She joined The Missouri Times in 2014, returning to political reporting after working as a campaign and legislative staffer.
Rachael studied at the University of Missouri – Columbia. She lives in Jefferson City with her husband, Brandon, and their two children.
