Nixon blocks $46M in state spending

JEFFERSON CITY, Mo. -- Missouri Gov. Jay Nixon says he's blocking the state from spending more than $46 million to balance the budget.

Nixon on Monday said the spending restrictions are needed because the state no longer can count on an anticipated $50 million from a tobacco settlement agreement.

The money is part of an annual payment that tobacco companies make to states under a 1998 settlement covering the costs of providing health care to those with tobacco-related illnesses.

Nixon and lawmakers banked on using the $50 million this fiscal year. But a recent appeals court ruling means the companies don't owe Missouri that money.

Nixon cut funding for several new programs in response. He also restricted money for a number of planned health-care provider rate increases.