Nixon blocks $46M in state spending to fix Missouri budget - KAIT Jonesboro, AR - Region 8 News, weather, sports

Nixon blocks $46M in state spending to fix Missouri budget

(Source: AP Graphics Bank) (Source: AP Graphics Bank)

JEFFERSON CITY, Mo. (AP) - Missouri Gov. Jay Nixon says he's blocking the state from spending more than $46 million in order 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 that 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.

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