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Gov. Jay Nixon slices $46 million from Missouri budget to cover lost revenue from tobacco settlement

Gov. Jay Nixon, D-Mo.
Gov. Jay Nixon, D-Mo.

Missouri Gov. Jay Nixon has announced $46.1 million in state budget cuts designed to cover an unexpected shortfall in revenue from the settlement with the nation’s tobacco companies.

In September, a state appeals court said the companies did not owe the state $50 million this year, as a trial court in St. Louis had found. An appeal is expected, but is not likely to conclude this fiscal year.

So Nixon released $46.1 million in cuts Monday. Among the line items:

▪ $3 million for the Rosencrans airport in St. Joseph

▪ $12.6 million for Department of Mental Health care providers and programs

▪ $250,000 for an I-70 study

▪ $1 million in “social innovation grants”

▪ $500,000 for rural dental clinics

▪ $3.4 million for a nursing facilities provider rate increase

“We have made every effort to minimize the impact on vital services by reducing spending from new programs yet to get underway and funding increases that would grow the size of government,” Nixon said in a statement.

The cuts come as the National Football League studies Missouri’s commitment to funding a new stadium in St. Louis.

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