Saturday, January 22, 2011

Missouri's governor proposes education budget cuts, welfare increases

Missouri's governor has proposed budget cuts exceeding nine percent for public higher education for the fiscal year that will begin in July.

Primary and secondary education would see a four percent cut under the governor's spending plan he presented to lawmakers Wednesday night. Administration officials had been warning for some time that deep cuts would have to be made in the state's budget because of reduced federal funds.

The state's Medicaid program, which provides health care coverage for the lower income, would enjoy one of the biggest increases under the governor's plan -- $490 million more, or slightly less than a 7.5 percent increase.

In his State of the State address to legislators, Gov. Jay Nixon made no direct reference to the specific education cuts. He did talk about the general cuts he has had to make in Missouri's budget during his two years as governor and the ability to avoid tax increases.

"All across state government, a leaner workforce is doing more with less. These decisions are never easy, but they are necessary. And because we've been frugal, we have money to invest in the things that matter most to Missourians: jobs, education, health care, and law enforcement," he said.

GOP leaders in the legislature withheld criticism of the Medicaid increase, agreeing with the administration's budget director that he new federal health care law restricts the state from making cuts in Medicaid.

Medicaid coverage is a major component of the federal law's objective to assure health care coverage.

"I think a lot of that Medicaid coverage is undoable," said House Budget Committee Chair Ryan Silvey, R-Kansas City. "The federal government has taken a lot of our ability to control that program over."

While withholding criticism of the welfare increase, Republicans did criticize the governor's approach to the education budgets -- particularly his suggestion that local school districts avoid spending some federal funds this year in order to make up for potential state budget cuts in the next fiscal year.

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