Judge weighs dismissing challenge to budget cut

JEFFERSON CITY, Mo. -- A judge is considering whether to dismiss a lawsuit challenging Gov. Bob Holden's decision to cut nearly $21 million in nursing home grants.

During a hearing Tuesday, state attorneys argued that the lawsuit brought by the nursing home industry should be dismissed because it fails to show Holden was incorrect in his belief that the state was experiencing a revenue shortfall.

A revenue shortfall is required by the constitution before a governor can withhold money appropriated in the state budget.

In May, Holden announced the details of $230 million in budget withholdings, including almost $20.7 million in nursing home grants. The cuts also affected state colleges and universities and numerous state agencies.

The state attorney general's office, which is representing Holden and other officials named in the lawsuit, contends that the constitution allows budget cuts whenever the state's total revenue are less than the estimated revenue upon which the budget was based.

That same line of reasoning also has been followed by other governors who have made cuts to help balance the budget.

"They are trying to circumvent a clear power of the governor, but haven't really alleged any facts" that Holden exceeded his powers, Robert Presson, assistant attorney general, argued in court.

Attorneys for the nursing home industry claim the constitution requires revenue for a particular fund to be lower than expected before that appropriation can be cut.