Missouri could face $600M shortfall in 2012

JEFFERSON CITY, Mo. -- Gov. Jay Nixon's administration is projecting a $600 million shortfall for Missouri's 2012 budget. And it's clamping down on building repairs and construction.

Memos sent by Nixon's administration to department leaders say a large gap will be left by the phase-out of $860 million of federal stimulus funds being used in the current budget.

The memos instruct agencies not to request money for specific building repairs or construction, unless agencies have a dedicated funding source.

Documents provided to The Associated Press say agencies should consider the $280 million of program cuts announced last month to be permanent. And they should offset any mandatory spending increases with cuts elsewhere when submitting budget requests.

The 2012 budget year starts in July 2011.