Next fiscal year will be only the third time in 30 years the state government has reduced spending year over year now that Missouri Gov. Jay Nixon has signed the $23.29 billion spending plan for fiscal 2012, starting July 1.

Nixon signed the budget, which will reduce total expenditures by at least 2.1 percent, on Friday.

The state is expected to spend $23.8 billion this year.

Nixon also announced Friday that he plans to withhold $172 million to make sure the budget is balanced.

As Missouri Watchdog reported, all funds fell year over year by 4.7 percent in 2003 and 2.8 percent in 1984.

Spending increased 508 percent from $3.9 billion in 1981 to an estimated $23.8 billion for this fiscal year.

The governor has the authority to restrict expenditures at anytime to ensure a balanced budget, which means total expenditures may drop further in fiscal 2012.

Missouri Budget Director Linda Luebbering said they are starting to think revenue will increase further than first anticipated during next fiscal year, therefore the administration is not currently anticipating further reductions.

By Brian R. Hook, brhook@missouriwatchdog.org, (314) 482-7944

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