Missouri facing $340 million budget shortfall

JEFFERSON CITY | The budget adviser for Gov.-elect Jay Nixon said Missouri was heading for a $340 million shortfall. And that means midyear spending cuts are likely.

Budget adviser Wayne Goode said Tuesday that Nixon will announce his recommendations to control spending within the next few days.

Nixon, a Democrat, takes over as governor Jan. 12. Nixon's transition team already has been working closely with the budget staff of outgoing Republican Gov. Matt Blunt.

Missouri's 2009 fiscal year started in July 2008 and runs until June 2009.

Goode says the budget assumed the state would end the year with a $281 million balance. The newly projected shortfall is a result of the economic recession that has lowered state tax revenues.