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Nixon announces $105 million in spending cuts, $325 million in restrictions

JEFFERSON CITY | Gov. Jay Nixon signed Missouri's 2010 budget into law this morning with line-item vetoes totaling $105 million.

In addition to those spending cuts, the governor will "restrict" expenditure of an additional $325 million, barring the state from spending it until revenues improve.

The state's income has deteriorated significantly since the projections underlying the budget were made. Nixon said although there were hopeful signs, it was still difficult to say when the economy would improve and revenues bounce back.

Among the vetoes:

*$24.7 million from a $111.7 million contract for a new statewide radio system for law enforcement;

*$20 for "various projects" across all state departments;

*$16.5 million for university building projects. Nixon was not specific as to which particular projects were affected;

*$10 million for a highway project in Jefferson City; and

*$5 million for maintenance and repair projects at state community colleges.Among the "expenditure restrictions":

*$91.3 million for university building projects, including the much-debated Ellis Fischel Cancer Center in at the University of Missouri-Columbia and projects at Truman State, Missouri State and UM-St. Louis;

*200 state jobs. $60 million for "salaries, expenses, contracts and grants" will be included in the budget but unavailable for spending. Nixon said that will mean the elimination of 200 jobs, although he was unspecific as to whether they would be actual layoffs or unfilled positions;

*$47.8 million for state building repair and maintenance; and

*$16.1 for projects at veterans' homes.

Nixon's budget director is holding a press conference with more details on the cuts at noon. Check Prime Buzz this afternoon for more information.

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