Missouri state budget
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In FY2012, The state of Missouri faced a budget shortfall by 2012 ranging between $600 million and $1 billion, with the state predicting the smaller figure and the Missouri Budget Project the higher estimate. The state legislature passed a $23 billion budget for FY2012 on May 5, 2011, and it spent approximately the same amount as the FY2011 state budget. Governor Jay Nixon, on June 10, 2011, made $172 million in budget cuts aimed in order to both balance the state finances and assist the state in recovering from natural disasters. He signed the budget the day after making the cuts.
Missouri operates on an annual budget cycle and begins the fiscal year on July 1 of each year.
In FY 2012, Missouri had a total state debt of approximately $65,791,997,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget budget gap. The state debt total was down slightly from the FY2012 total of $66,307,890,000. Missouri's total state debt per capita was $10,945.83.
Federal Aid to State Budget
The chart below represents how much of the state’s budget comes from the federal government. The number was the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
|Missouri||35.35% (#6)||39.35% (#5)||45.19% (#4)||44.36% (#5)|
- Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.
Fiscal Year 2014 State Budget
Gov. Jay Nixon discussed details of his proposed fiscal plan for FY2014, including a $25.7 billion operating budget, in his State of the State address on Jan. 23, 2013. The proposal included a $900 million Medicaid expansion for low-income working adults that was called for under President Barack Obama's health care law. Under the plan, an approximately 300,000 additional Missourians would receive health care coverage.
His proposed budget included:
- $150 million more in education spending, including a $66 million increase to the state's $3 billion basic aid program for K-12 public schools, but funding still falls $620 million shy of the amount called for by the state's school funding formula;
- $10 million increase for public safety programs related to mental health;
- a 2 percent pay increases for state employees, effective Jan. 1, 2014; 
- $150 million more, a 4 percent increase, for higher education, with $34 million be distributed if public colleges and universities meet new performance criteria, such as student retention and graduation rates.
The budget relied on $165 million from other legislation that had not passed at the time of his proposal, including money from the expansion of Medicaid, which Republican lawmakers had opposed.
Fiscal Year 2013 State Budget
On April 25, 2012, the Senate passed a $24 billion budget that did not cut services to the blind at the House budget does, and gives state employees earning up to $45,000 annually a raise. The budget went to a conference committee, and the legislature presented it to the governor.
The enacted bills comprising the state budget can be found online.
In Aug. 2012, the state borrowed $100 million from the Budget Reserve Fund to put in the general fund and plans to repay it by mid-May 2013, before the end of the fiscal year.
Missouri officials in Dec. 2011 predicted a 3.9 increase in state revenue, giving the state approximately $7.6 billion for FY2013. The budget was based on that assumption of 3.9 percent revenue growth. The state faces a deficit of $500 million.State Representative Tony Dugger said that the FY2013 budget discussions would include no plans for proposed tax increases or new taxes.
Education funding was based on the assumption of that lottery proceeds would grow by $50 million in FY 2013, or 18.5 percent. If that increase did not materialize, the resulting shortfall could necessitate cuts in K-12 education or other areas of the budget funded by general revenue.
Legislative Proposed Budget
The conference committee made up of lawmakers from both chambers agreed on a budget on May 10, 2012, and sent the budget to the governor for his signature. It spends $50 million less than the governor's proposed budget. The budget spends $8 billion of general revenue, the most flexible area of the budget, and funding for public schools remains the same as FY2012. Highlights of the budget include:
- A health care program for blind Missourians would receive most of its funding from the state budget;
- Seven universities would split a $3 million boost to higher education funding;
- Missouri's seven veterans homes would be funded primarily through the state's casino entrance fee;
- State workers who earn less than $70,000 annually would receive 2 percent raises in the coming year.
The House Budget Committee added $1 billion to the budget. The House budget plan allots just 75 percent of the additional Medicaid money requested to cover an increased use of some Department of Mental Health services. It also allots 75 percent of the amount needed to offset a decline in the federal matching rate for Missouri's Medicaid services in the departments of social services and health.
The House approved the 13 appropriations bills that make up the state’s FY2013 operating budget on March 22, 2012. The budget included $6 million for a scaled-down version of the health care program, with $4 million of that total coming from legislation that hasn’t passed yet that ends a sales tax exemption for newspapers. It eliminates a $28 million health care program that serves about 2,800 blind people who did not qualify for Medicaid, and directed that money toward higher education to avoid cuts at the state's universities.
The Senate Appropriations Committee agreed to keep the House’s proposals for higher education funding, which would keep spending stable relative to this year’s amount. Senators said they were also looking for a way to restore funding to the program for the blind, which the House had cut to fund higher education.
The Senate also differed with Nixon and the House on an increase in pay for state employees, who had not seen a raise in four years. Nixon recommended all employees get an increase but delayed its effective start until Jan. 1. The House approved a pay raise starting July 1 but would apply it only to those workers making less than $70,000. The Senate approved a plan that would also start on July 1 but only cover workers making less than $45,000.
Governor's Proposed Budget
Gov. Jay Nixon presented his proposed FY2013 budget on Jan. 17, 2012.
The budget cut $508 million, and those cuts include:
- $191 million from Medicaid,
- $89 million from higher education, and
- 816 state jobs
The proposed budget increased funding in some areas, including:
- K-12 school funding by $5 million, but it was still nearly $500 million less than what was called for by the state’s school funding formula, and
- a 2 percent raise for state employees, starting Jan. 1, 2013, at a cost of $23.6 million.
The plan relied on $52 million in increased revenue from a tax amnesty plan that twice failed to clear the legislature in 2011. Other sources of new revenue include:
- expanding a state license ban for professionals and businesses that haven’t paid state taxes;
- transfer of money from a fund of the Missouri Health and Educational Facilities Authority; and
- increasing casino fees.
The governor's plan predicts that all together, a total of $100 million in new revenue could be generated.
The governor proposed finding money to plug a budget shortfall by asking universities to give the state money from their reserve funds. The governor's proposal called for the University of Missouri to chip in $63 million and four other schools to come up with lesser amounts, for a total of $107 million. On Jan. 5, 2012, the governor said that plan was now "off the table." When the House cut a program for the blind to offset cuts to higher education, the governor proposed using $17.75 million in new federal money related to the Medicaid program to supplement blind health care.
Fiscal Year 2012 State Budget
- See past state budgets
Missouri faced an estimated $500 million budget deficit for FY2012, equivalent to $83 for each state resident. Lawmakers passed a $23.2 billion operating budget for FY2012 on May 5, 2011. Gov. Nixon signed the budget on June 10, 2011, but he first cut $172 million from the budget. A summary of the budget bills from the Office of Administration can be found online. 
The state's net general revenue collections grew 3.2 percent for FY 2012, but they were lower than those collected in FY 2008 and did not increase as much as revenues did in FY2011.
When a mortgage foreclosure settlement between banks and states was announced in Feb. 2012, Attorney General Chris Koster said that he plans to put $40 million of Missouri's mortgage foreclosure settlement money -- about 20 percent of the total $196 million that the state would receive -- into the general state fund. Gov. Jay Nixon then said he planned to use nearly all of the state's $41 million settlement payment to offset some of the budget cuts he made earlier in the fiscal year, although he did not specify which cuts.
In August, the governor restored $1.2 million of his prior cuts to programs for elderly and children. He did so because of a 9.13 percent rise in state individual income tax collections in the prior 12 months, taking that as a sign that revenue growth was likely to continue through FY2012. The state's budget director said that it on target to meet its budget growth figure, estimated at around two percent, despite a 0.9 percent decline in sale tax revenue.
Natural Disaster Costs and the Governor's Authority
Following devastating tornadoes in Joplin, Missouri, the governor withheld $172 million in state funding, including $57 million in general revenue funds, for various programs in order to pay for disaster recovery. Missouri state Auditor Tom Schweich filed a lawsuit against Gov. Nixon on Aug. 26, 2011, alleging the governor violated the state constitution when he withheld the funds, saying that the process was not legal and not transparent. Republicans had commented that, after Nixon withheld the funds in June, the budget was more closely aligned with his original recommendations than it was when the Legislature adjourned.
On Oct. 31, 2011, a Cole County judge heard arguments on whether the governor cut the state budget regardless of whether revenue was running short. The case was expected to focus on a provision in the Missouri Constitution that reads: "a section of the Missouri Constitution that states: "The governor may control the rate at which any appropriation was expended during the period of the appropriation by allotment or other means, and may reduce the expenditures of the state or any of its agencies below their appropriations whenever the actual revenues were less than the revenue estimates upon which the appropriations were based."
Gov. Nixon's Cuts
After the passage of the bill, Gov. Jay Nixon cautioned that he may had to make additional cuts because it spends at least $30 million more than he expects the state to receive in revenues that he may had to make cuts. Nixon made good on that threat on June 10, 2011, when he announced that he would cut $172 million in order to balance state finances and also help rebuild portions of the state damaged by natural disasters. State Budget Director Linda Luebbering said additional cuts may had to be made down the road depending on the cost of the disaster and future revenue projections.
His cuts included:
- $14.9 million from universities
- $1.9 million from community colleges
- $13.9 million to Medicaid
- $8 million for school buses
- $6 million to the judicial branch
- $3 million for college scholarships 
- $2 million to corrections with management encouraged to use comp time and other tools to save money
- $800,000 million from the Legislature's budget
The cuts to universities and colleges match those that Nixon first proposed identical cuts in January, when he released his initial budget proposal. Overall, he cut 46 programs.
The legislature approved a $23.2 billion operating budget for FY2012 on May 5, 2011. The budget included a $1.1 million increase for the state's oversight of dog-breeding businesses and cuts $1.6 million from state aid to conduct property assessments, which help set a property tax base for local schools. It also eliminates funding for the chef at the governor's mansion. The budget would phase out the corporate franchise fee, costing the state $24 million in FY2012. The budget reduces state aid to conduct property assessments by $1.6 million. he budget included a $1.1 million increase for the state's oversight of dog-breeding businesses, which had been a focal-point of controversy in Missouri.
Under the legislative version of the budget, K-12 public schools would receive $3 billion in basic aid, the same amount as the current year but $180 million less than what the state's school funding formula dictates. The budget provides $107 million for school transportation, which provides funding for busing, $45 million less than what schools were supposed to get this year, but about $10 million more than what they actually got after Nixon's budget cuts.
For higher education, the governor's budget plan would have reduced core budgets of colleges and universities by 7 percent, but the legislative budget included a roughly 5.5 percent cut. For the second year, the primary college scholarship program would rely on the transfer of $30 million from the Missouri Higher Education Loan Authority, which services college loans.
Initial House and Senate Proposals
The Senate approved its state budget proposal, which totals $23.2 billion, on April 20, 2011. It keeps basic school aid the same as last year’s budget and would restore part of the cuts that had been proposed for school busing aid and for public colleges and universities.
The House approved its $23.2 billion version of the state budget. The plan approved by the House was $700 million less than what the state planned to spend in FY2011 and $142 million more Gov. Nixon's proposed FY2012 budget. The House budget provided $200,000 for the Film Commission, which was cut in the governor's version of the budget, added $200,000 more for Parents as Teachers and spends $2 million for a program at Missouri State University that aims to bring more pharmacists to the area. The budget plan would allot about $3 billion in basic aid for public schools in the upcoming academic year, the same amount they received this year. 
Presumptive House Speaker Steven Tilley said Republicans would not support tax increases, meaning that the General Assembly would likely had to make $500 million in cuts to the budget. Just under one third -- about $7.5 billion -- of the FY2011 budget comes from "general revenue," or places where legislators were free to cut. Most of the general revenue budget goes toward health care or education.
In his State of the State address on Jan. 19, 2011, the governor said that he would reduce total state spending and while keeping K-12 school funding the same, he planned to reduce aid to colleges and cut around 860 state employee positions. In addition, the governor said he would either cap or eliminate the state's tax credit programs for businesses.
Net general revenue collections in March for the fiscal year-to-date, starting July 1, totaled $4.98 billion, up 6.5 percent from $4.69 billion in the same period last year, according to numbers from the Missouri Office of Administration. The state could miss out on as much as $190 million in revenue over FY2011 due to federal tax changes and because the state's tax laws were linked, or "coupled," to federal tax rules for business purchases.
Governor's Proposed Budget
Gov. Nixon proposed a $23.1 billion operating budget on Jan. 19, 2011. The governor's spending proposal breaks down as follows:
|Category||Proposed Spending for FY2012||Budgeted Spending for FY2011|
|Public Debt||$48 million||$77 million|
|K-12 Education||$5.36 billion||$5.15 billion|
|Higher Education||$1.23 billion||$1.11 billion|
|Revenue||$432 million||$441 million|
|Transportation||$2.63 billion||$2.24 billion|
|Administration Office||$287 million||$251 million|
|Employee Benefits||$900 million||$821 million|
|Agriculture||$42 million||$49 million|
|Natural Resources||$310 million||$310 million|
|Economic Development||$257 million||$258 million|
|Insurance||$38 million||$40 million|
|Labor||$112 million||$112 million|
|Public Safety||$524 million||$542 million|
|Corrections||$660 million||$661 million|
|Mental Health||$1.2 billion||$1.24 billion|
|Health, Senior Services||$921 million||$955 million|
|Social Services||$7.66 billion||$8.17 billion|
|Elected Officials||$112 million||$107 million|
|Judiciary||$190 million||$190 million|
|Public Defender||$38 million||$38 million|
|Legislature||$34 million||$33 million|
|Real Estate||$148 million||$150 million|
|Total||$23.27 billion||$23.09 billion|
Missouri Accountability Portal is the name of the publicly available website created by the Missouri government. It discloses information about the Missouri government's spending, and includes data on state employee salaries, agency expenditures, and tax credit information. The Missouri Accountability Portal was created at the Executive Order of Governor Matt Blunt in July 2007.
Missouri Accountability Portal provides a database of state financial information, which was searchable by criteria such as expenditures, vendors, contracts, and employee names. The following table was helpful in evaluating the level of transparency provided by Missouri Accountability Portal:
|State Database||Searchability||Grants||Contracts||Line Item Expenditures||Dept/Agency Budgets||Public Employee Salary|
|Missouri Accountability Portal|
- See also: Evaluation of Missouri state website
Multi-Measure Budget Transparency Profile
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Missouri, which measures state transparency as of September 2011 using indicators from a range of organizations. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
Missouri's fiscal year begins July 1 and ends June 30th of the following year. In October state department agencies prepare budget requests and revenue estimates for the upcoming budget year. By the end of December the Governor reviews both the requests and the revenue estimates prior to presenting a budget recommendation to the Legislature. Both the House and the Senate review the bill, hold a series of hearings and make any necessary amendments prior to approving the budget. The Senate usually finishes their work on budget about three weeks before the Legislature adjourns at the end of April. But, all appropriations bills must be passed by the General Assembly one week before the session ends, May 8, 2009. The appropriations were then forwarded to the Governor who had line item veto power and can reduce or eliminate any amount of funding for any item in a bill before signing it into law. 
The Missouri State Auditor is Missouri's independent watchdog agency, charged with auditing approximately 200 state agencies and boards and commissions; the state court system, including 45 judicial circuits and nearly 400 municipal courts; and the 89 counties in Missouri that did not had a county auditor. The State Auditor may also be called on to audit local units of government by citizen petition. On average, 20 audits of local government entities were performed each year. Missouri's audit reports are published online.Cite error: Closing </ref> missing for <ref> tag
The Missouri Division of Accounting is responsible for operation of the statewide accounting and payroll systems and was the custodian of the official accounting records of the state. The division prepares payments, publishes annual financial reports, administers bond sales for the Board of Fund Commissioners and Board of Public Buildings, and administers the social security coverage for state political subdivisions. Mark A. Kaiser was Director of the Division of Accounting.
Missouri received $4.46 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.
The Missouri Accountability Portal provides information about state employees pay. Users can view pay information about the employees of the State of Missouri by their Agency of employment, Position Title or Employee Name. It provides gross pay amounts by the last pay cycle and year to date.
According to 2011 Census data, the state of Missouri employed a total of 374,571 people. Of those employees, 286,566 were full-time employees receiving a net pay of $1.01 billion per month and 88,005 were part-time employees paid $80.3 million per month.
- State Budget Solutions, Missouri
- Show-Me Institute
- Americans for Prosperity, Missouri
- Missouri Accountability Portal, official website
- Office of Administration, Missouri government
- Missouri government spending
- Model transparency legislation from the American Legislative Exchange Council was available at this link.
- The Rolla Daily News,"More state cuts likely," February 25, 2010
- St. Louis Post-Dispatch,"States face a trillion-dollar retirement gap," February 18, 2010
- State of Missouri,"2010 State of the State Address," January 20,2010
- State of Missouri,"2009 State of the State Address," January 27,2009
- "Missouri revenue down $1 billion since 2000," Missouri Watchdog, November 8, 2010
- ↑ Missouri Watchdog, Missouri could face budget shortfall of $1 billion in 2012, Aug. 6, 2010
- ↑ Businessweek "Missouri lawmakers pass $23B budget for next year" May 6, 2011
- ↑ 
- ↑ 4.0 4.1 4.2 4.3 St. Louis Public Radio "Nixon signs, and cuts, FY2012 Mo. budget" June 10, 2011
- ↑ National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011
- ↑ State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012
- ↑ State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
- ↑ State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012
- ↑ US Census Federal Aid to State and Local Governments
- ↑ Tax Foundation' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013
- ↑ 11.0 11.1 11.2 The Southeast Missourian "Nixon outlines budget, policy priorities for Mo. in State of the State" Jan. 29, 2013
- ↑ Press Release from the Governor's Website "Gov. Nixon details plans to provide health care coverage for additional estimated 300,000 Missourians during visit to Kirksville Regional Economic Development Inc." Jan. 31, 2013
- ↑ 13.0 13.1 13.2 13.3 13.4 StLToday.com "Nixon's budget proposal relies on $165M from other legislation" Jan. 29, 2013
- ↑ CBS St. Louis "Higher Education Institutions Favor Performance-Based State Funding" Jan. 30, 2013
- ↑ 15.0 15.1 StLToday.com "Mo. Senate budget funds pay hikes, blind benefits" April 25, 2012
- ↑ KOMU.com "Legislature Sends 2013 Budget to Gov. Nixon's Desk" May 10, 2012
- ↑ FY2012 Enacted Budget Bills
- ↑ CBSNews.com "Mo. taps reserve fund to help with cash flow" Aug. 2, 2012
- ↑ [Businessweek "Mo. estimate predicts 3.9 percent revenue growth" Dec. 21, 2011]
- ↑ 20.0 20.1 The Missouri Budget Project "Missouri FY 2013 Budget Relies on Risky Assumptions" June 1, 2012
- ↑ 21.0 21.1 The News-Leader "Plan to tap universities' reserve funds was out" Jan. 6, 2012
- ↑ The Marshfield Mail "Missouri’s dbudget to be big legislative issue for 2012" Dec. 22, 2011
- ↑ 23.0 23.1 23.2 StLToday.com "Missouri lawmakers reach budget agreement" May 10, 2012
- ↑ 24.0 24.1 The Columbia Tribune "Lawmakers send budget bills to Nixon" May 10, 2012
- ↑ StLToday.com "Mo. lawmakers asserting more control over budget" March 18, 2012
- ↑ Missouri House of Representatives "House Gives Initial Approval to FY 2013 State Operating Budget" March 20, 2012
- ↑ 27.0 27.1 27.2 The Kansas City Star "Missouri House passes $24 billion budget" March 2, 2012
- ↑ 28.0 28.1 28.2 The Springfield News Leader "Senators start work on budget, look for ways to avoid cutting health care funds for blind Missourians" April 5, 2012
- ↑ StLouisToday.com "Gov. Jay Nixon proposes budget cuts, boost to K-12 education" Jan. 17, 2012
- ↑ 30.0 30.1 The Kansas City Star "Nixon proposes $106 million cut from Missouri higher ed" Jan. 17, 2012
- ↑ CBS St. Louis "Analysis: Nixon’s Budget Depends On New Revenues" Jan. 23, 2012
- ↑ StLToday.com "Nixon considers asking 5 Missouri universities to lend money to state" Dec. 16, 2011
- ↑ Cite error: Invalid
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- ↑ 34.0 34.1 34.2 34.3 "State's budget deficit presents difficulties" Jan. 2, 2011
- ↑ 35.0 35.1 35.2 35.3 Forbes "Missouri lawmakers pass $23B budget for next year" May 6, 2011
- ↑ FY 2012 Budget Bill Summaries
- ↑ The Missouri Budget Project "Missouri General Revenue Report, FY 2012 Summary" July 31, 2012
- ↑ The Huffington Post "National Mortgage Settlement: Some States Using Mortgage Deal Funds To Close Budget Gaps " Feb. 10, 2012
- ↑ CBS MoneyWatch "States diverting foreclosure settlement funds" March 14, 2012
- ↑ Missouri News Horizon "State Revenues Rise, Governor Restores Some Cuts" Aug. 4, 2011
- ↑ The St. Louis Post Dispatch "Tom Schweich sues Jay Nixon over budget decisions" Aug. 27, 2011
- ↑ St. Louis Today "Court case could settle constitutional fight over budget cuts" Oct. 31, 2011
- ↑ 43.0 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 StLToday.com "Jay Nixon cuts millions from state budget" June 11, 2011
- ↑ 44.0 44.1 44.2 Businessweek "Missouri lawmakers pass $23B budget for next year" May 6, 2011
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs named
- ↑ Businessweek "Missouri Senate may take up state budget proposals" April 18, 2011
- ↑ OzarksFirst.com "Missouri House Gives Final Passage To State Budget" March 30, 2011
- ↑ Businessweek "Mo. budget panel backs Nixon on K-12, universities" March 16, 2011
- ↑ The News Leader "Budget submitted with major shortfalls" March 16, 2011
- ↑ 50.0 50.1 Bloomberg "Nixon touts jobs even with state budget shrinking" Jan. 20, 2010
- ↑ Missouri Watchdog.org "Missouri lawmakers on track to reduce spending" April 4, 2011
- ↑ Forbes "Analysis: Tax change could affect Mo. budget" May 2, 2011
- ↑ The News Tribune "A look at Gov. Nixon’s proposed Missouri budget" Jan. 19, 2011
- ↑ Institute of Government and Public Affairs
- ↑ University of Illinois Transparency Profile for Missouri
- ↑ [ University of Illinois 50 State Transparency Comparison
- ↑ University of Illinois State Transparency Profiles
- ↑ St. Louis Childrens,"Missouri Budget Process," retrieved March 17,2009
- ↑ Missouri State Auditor Web site, retrieved October 29, 2009
- ↑ Missour Division of Accounting Web site, retrieved October 29, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ Pew Stateline Infographic on State Credit Ratings. Accessed September 26, 2013
- ↑ Recovery, "Stimulus Spending by State"
- ↑ 64.0 64.1 2011 Missouri Public Employment U.S. Census Data