Missouri could face $600M shortfall in 2012 - KMOV.com

Missouri could face $600M shortfall in 2012

 

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

The financial forecast is included in a document obtained by The Associated Press. It was sent recently by Nixon's budget director to the state's various department leaders and budget officers.

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 says departments should consider the $280 million of program cuts announced last month to be permanent. It says they should offset any mandatory spending increases with cuts elsewhere when submitting their 2012 budget requests.

The 2012 budget year starts in July 2011.

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