JEFFERSON CITY, Mo. — Gov. Jay Nixon announced Friday that his administration would withhold $400 million from the state budget, citing his concern that the GOP-backed tax reform proposal would be detrimental to the state’s coffers.
Speaking to reporters 72 hours before the beginning of fiscal year 2014, Nixon said the threat of a veto-override of House Bill 253 — Sen. Will Kraus’s income tax proposal — has forced his administration to make a serious budget withholds.
“With a price tag of at least $800 million, House Bill 253 contains flawed provisions that would explode these costs immediately – to the tune of $1.2 billion — if Washington passes the Federal Marketplace Fairness Act,” Nixon said. “We don’t balance budgets by making risky bets.”
Nixon said Republicans have a choice: support higher education or support HB 253, “but you can’t do both.”
Republicans acted quickly and in concert on Friday — releasing a series of statements critical of the education cuts and “flying around the state” on taxpayer dime. Senate Appropriations Chairman Kurt Scahefer, said the withholds do not make sense when the state is currently facing a revenue surplus.
House Speaker Tim Jones went a step further — accusing Nixon of violating the state constitution in withholding funds while the state was facing a revenue surplus.
“The governor has clearly violated his constitutional authority by withholding funding in a year where we have a significant budget surplus,” Jones said. “If the governor takes the Missouri Constitution seriously, he should respect the budget-making authority of the legislature, put an end to this farce, and follow the fiscally-responsible spending plan we sent him.”
Currently, the Nixon administration is still at court over a similar matter dealing with a budget freeze he made in 2011 to pay for Joplin tornado recovery projects that year. State Auditor Tom Schweich took Nixon’s administration to the Missouri Supreme Court over the issue, but two years later, the court has yet to rule.
For his part, Nixon said it was necessary to make the withholds simply because of the possibility that the General Assembly may override his veto.
For Missouri state workers, that means a two and a half month waiting period with their paychecks on the line. Nixon announced his administration would seek 1,000 positions to cut as part of the $400 million cut back. Additionally, a pay increase for state workers is on the line if the General Assembly overrides the veto, Nixon said.
It is unclear whether Republicans have the numbers for an override. When they voted on the proposal in May, only 103 state Representatives voted in favor of the plan. An override requires support from all 109 lawmakers.
In addition, Nixon announced line-item vetoes totalling $1.14 million for four programs througout the state.