Governor's budget actions could hit region hard

Gov. Jay Nixon's decision Tuesday to veto or freeze more than $1.1 billion in Missouri's 2015 fiscal year budget could have a significant effect on Southeast Missouri.

The cuts reach across the board, from education to health to tax assistance. After announcing the decision, the Democratic governor said the cuts were necessary because the budget approved by the Republican-led Legislature was "dangerously out of balance."

Last year, Nixon froze about $400 million for education, health care and other programs, releasing the money only after the Legislature failed to override his veto of an income tax-cut bill. This year's round of cuts come after a promise from lawmakers to override Nixon's veto of a slew of tax-cutting bills.

The 10 vetoed bills called for tax breaks for specific entities such as power companies, Laundromats, restaurants and grocery stores. Nixon estimated the measures would bring state revenue down by $425 million annually.

Rep. Kathy Swan, R-Cape Girardeau, said she would like to see the numbers the governor's office used to calculate that estimate. After poring over the tax-cutting bills and making her own calculations, Swan said she's been unable to arrive at the same total.

"I went into each one of those bills and pulled up the fiscal notes and added -- of course, some of them say 'up to' and some will say 'may exceed' -- but if you take the top dollar figure on all those fiscal notes, I come up with a little over $233 million," she said. "... So we've got about a $192 million difference, and without seeing his math indicating where he thinks that the General Assembly's fiscal notes are not correct, it's hard to say why, and where, are you coming up with this difference ..."

Swan said sharing the information could help legislators make responsible decisions on future bills. Further examination might also eliminate the need for such deep budget cuts, especially in education.

When the new budget takes effect July 1, it will not include a funding increase for public schools, colleges or universities. Nixon vetoed the $100 million increase budgeted for the education Foundation Formula, $4 million for the Bright Flight scholarship program and $2 million for the A+ Scholarship program.

Swan said these moves could be more detrimental to the local economy than any tax-cutting bill.

"Cutting education hurts the economy because we're producing the future work force," she said. "None of us would really dispute that good, high-quality education is the best economic driver that we have. So if high-quality education is the best economic driver, then we certainly really need to take a hard look at where we make cuts before we do the cuts."

A breakdown of the education cuts show a veto of $150,000 for Three Rivers College's Southeast Missouri Outreach program.

The governor also is withholding funds for higher education capital improvements, meaning a $2 million request from Southeast Missouri State University for Memorial Hall and a $5.6 million request from Three Rivers for its eastern campus expansion will go unfulfilled until the funding is available.

Local mental health facilities also will feel the pinch when the new budget takes effect. Nixon restricted nearly $500,000 from the Cottonwood Residential Treatment Center, which prevents the center from accepting new entries.

The Southeast Missouri State University Autism Center will have $20,000 restricted until funds are available.

In the public safety realm, drug task forces, drug courts and firefighter training programs stand to lose a combined $900,000.

The budget cuts also will lead to job losses in Cape Girardeau. The governor vetoed funding for seven tax assistance centers -- including one in Cape Girardeau -- which are part of Missouri's Department of Revenue. A Cape Girardeau satellite office of the Division of Environmental Quality, part of the Department of Natural Resources, also would close.

The Associated Press contributed to this report.

srinehart@semissourian.com

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Pertinent address:

Cape Girardeau, Mo.

Jefferson City, Mo.

Budget cut effects

Budgets have been vetoed, reduced or restricted for:

* Three Rivers Southeast Missouri Outreach Program

* Three Rivers College, Eastern Campus

* Southeast Missouri State University, Memorial Hall

* Southeast Missouri State University Autism Center

* Cottonwood Residential Treatment Center

* Division of Environmental Quality, Cape Girardeau satellite office

* Tax Assistance Center, Cape Girardeau