From Missouri Digital News: https://mdn.org
MDN Menu

MDN Home

Journalist's Creed

Print

MDN Help

MDN.ORG: Missouri Digital News
MDN Menu

MDN Home

Journalist's Creed

Print

MDN Help

MDN.ORG Mo. Digital News Missouri Digital News MDN.ORG: Mo. Digital News MDN.ORG: Missouri Digital News
Help  


Budget Cuts to be Announced

August 29, 2001
By: Anna Nichols
State Capital Bureau

JEFFERSON CITY - The long-awaited answer to the budget-cut warnings from Missouri's governor will be delivered Thursday morning.

The governor's office announced Gov. Bob Holden will announce his full budget withholdings for state agencies Thursday at 11:30.

The governor had asked state agencies to prepare plans for cutting as much as 18 percent of the money the legislature had appropriated in the spring.

The state's tight budget is the "result of the slowing economy, the impact of tax cuts and tax credits, federal tax cuts and other factors," according to a statement released by Holden's office Wednesday.

Some Republicans, however, have questioned whether the budget situation is as bad as the governor claims.

"The state of Missouri is not broke," said Sen. Chuck Gross, R-St. Charles and a member of the Senate Appropriations Committee.

"Actual revenues are 4.3 percent over last year, and the average overall withholding for the state departments is 3.51 percent, not 18 percent," Gross said in a statement issued last week.

Gross voiced concerns that Holden was trying to lay the groundwork for a tax increase proposal.

Similar concerns have been voiced by the House GOP leader, Catherine Hanaway from St. Louis County.

Republican criticism of Holden's proposed budget cuts has had no effect on the cuts the governor will announce Thursday, said Jerry Nachtigal, Holden's chief spokesman.

Last week, Gov. Holden announced the first round of cuts, which affected the Social Services and Education departments.

The Social Services Department cuts totalled $25.4 million. The cuts in that department included travel expenses, computer upgrades, and staff training.

The cuts in the Education Department budget totalled $3.1 million, which will limit training and travel in that department. Unoccupied positions in the department will remain empty for the time being.