Schools take big hit as Holden freezes $250 million in spending

JEFFERSON CITY, Mo. -- Gov. Bob Holden has withheld more than $250 million in state spending, almost 80 percent of which came from public schools, officials announced Wednesday.

"That's going to hurt," said state budget director Linda Luebbering. "Quite frankly, a lot of these departments have already been cut significantly. I've already had indications from some directors that it means more layoffs."

She said she did not know what departments the specific layoffs would come from.

Public schools took the biggest hit, losing $197 million -- 8.8 percent less than the Legislature appropriated. State colleges and universities lost $25 million -- a 3 percent decrease.

Holden has said the budget passed by the Republican-controlled Legislature is about $250 million out of balance. He twice vetoed the Legislature's budget bills for public schools and colleges and called lawmakers into special session, asking them to raise taxes to add money into the education budgets.

Lawmakers refused to consider his tax proposals, adding a small amount of federal money into the budgets for education and human services. Last week, Holden relented from his demand and agreed to sign the Republicans' budget bills into law. The withholdings announced Wednesday are exactly what Holden promised he'd do.

The public schools budget lost $173.9 million from the basic school funding formula as well as $18.6 million in school transportation funding. The rest of the cuts come from other smaller payments within the Department of Elementary and Secondary Education.

Most colleges and universities are losing 2.8 percent of their budgets. The biggest cuts to higher education institutions come to Missouri Southern State College in Joplin and Missouri Western State College in St. Joseph.

Luebbering said the cuts were made by targeting certain lines in the budget that had received increases that could not be afforded. After the targeted cuts were made, Holden cut 3 percent across the board, she said.

The agencies whose budgets come from the state's general revenue fund took some of the biggest cuts, including the departments of Social Services, Mental Health and Corrections.

Luebbering said if revenues begin to come in higher than expected, Holden could release some of the frozen money. For example, she said, if the lottery revenue doesn't fall as she expects, more money could be given to schools and colleges.

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On the Net:

Missouri Legislature: http://www.moga.state.mo.us

Gov. Bob Holden: http://www.gov.state.mo.us