Economic picture grows gloomier for Missouri

ST. LOUIS -- More belt-tightening is in Missouri government's future. Before Christmas, Gov. Bob Holden will announce another round of spending cuts, budget analysts say.

State budget director Brian Long estimated a $150 million to $200 million shortfall for the fiscal year that ends in June. As a result, agencies will have to find more ways to save money, Long said in a meeting Wednesday with the St. Louis Post-Dispatch and The Associated Press.

Much of the reductions will be administrative, such as leaving job vacancies open and postponing computer upgrades, Long said. Another possibility: More delays in monthly payments made to public colleges and universities.

"It just is kind of an intensification of what we asked agencies to do the first time around," Long said. "The governor wants to be satisfied that he's squeezed everything out of agencies that we can."

Missouri's budget was in trouble before Sept. 11. Citing a slowing economy, Holden vetoed $36 million from the state's $19.2 billion budget before it ever took effect. Since July 1, he has withheld another $323 million for state agencies.