JEFFERSON CITY • In January, Gov. Jay Nixon surrounded himself with Lincoln University nursing students and promised to ask the Legislature for money to convert part of St. Mary’s Hospital in Jefferson City into classrooms and academic training facilities for Lincoln University.
Lawmakers granted his wish, allotting $6 million for the project in the fiscal year that begins next week. But Tuesday, Nixon vetoed the measure, calling off talks with the hospital and the university.
“While I thought that the initial investment there was a good idea … expanding that physical plant here — in this kind of a situation with a continuing cavalcade of tax cuts and tax breaks — is just not fiscally prudent,” Nixon said.
The project is only one of several that Nixon initially endorsed, then killed or stalled as part of budget cuts totaling $1.1 billion for the fiscal year that begins Tuesday.
Nixon said the cuts were necessary, citing tax cuts awarded by the Legislature and the failure to expand Medicaid, among other reasons. But much of the underlying problem relates to how wrong he and the Legislature both were about the current year’s revenue growth.
Nixon, a Democrat, projected 2.8 percent revenue growth for the current fiscal year, while the Republican-led Legislature estimated 2 percent.
But during the fiscal year that ends Monday, revenue hasn’t grown at all.
This problem carries over into planning for the new fiscal year. About $400 million of the $786 million in general revenue Nixon either withheld or vetoed is due to the revenue miscalculation.
So, the governor began cutting program increases, many of which he supported.
Here are some examples:
• Pay raise for state employees: Nixon withheld a 1 percent increase. He had recommended 3 percent.
• Foundation Formula, which funds K-12 public schools: Nixon withheld a $100 million increase. He had recommended a hike of $278 million.
• K-12 transportation: Nixon withheld a $15 million increase, the amount he had recommended.
• Needs-based scholarship, Access Missouri: Nixon withheld all but a $3 million increase. He had recommended $8.6 million.
• Performance funding for higher education institutions: Nixon withheld a $43 million increase. He had recommended $42 million.
• Tourism: Nixon withheld all but a $4.3 million increase. He had recommended $10 million.
Republicans blasted Nixon for cutting millions of dollars to help Missouri children get a better education — spending that he had championed only six months earlier.
“(Nixon) is withholding public education funding as leverage to stifle the Legislature’s efforts to create jobs, reduce taxes and rein in his administration’s constant attempts to over-tax Missourians and Missouri businesses,” House Speaker Tim Jones, R-Eureka, said.
Sen. Mike Kehoe, R-Jefferson City, believes the governor is pouting because the Legislature overrode his veto of the $620 million income tax cut.
“I have four kids who have gone through grade school,” Kehoe said. “I’ve seen this (pouting) all before, but I didn’t think I’d see it from our sitting governor.”
Kehoe was particularly disappointed the governor flip-flopped on the St. Mary’s project, because it affects the area he represents. The hospital is moving to a new location along Highway 179 in western Jefferson City in November.
“He invited me to a press conference” touting the project, Kehoe said. “I didn’t create a press conference (on it) and invite the governor — it’s unbelievable.”
The governor and the Legislature also disagree on next fiscal year’s revenue growth. Nixon projects 5.2 percent growth, while the Legislature expects a more conservative increase of 4.2 percent.
Nixon’s Budget Director Linda Luebbering said Nixon’s cuts were based on the assumption that revenue would grow about 5 percent next year. However, it has to grow several percentage points more given the lack of growth this year, she said.
Kehoe said he will encourage lawmakers to override every veto they possibly can during the September session.
“This man cannot govern,” Kehoe said. “It’s up to the Legislature to do the right thing for Missourians.”
