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Nearly 700 state jobs axed

By David A. Lieb
The Associated Press

Governor announces $200 million in cuts, but none in his office

Published: Thursday, October 29, 2009 4:00 AM CDT
Gov. Jay Nixon cut an additional $204 million from Missouri's budget Wednesday and eliminated nearly 700 jobs in attempt to offset a continued decline in state tax revenues.

The wide-ranging cuts will reduce busing aid to public schools, Medicaid payments to some health care providers and subsidies to the arts and humanities. Grants for life sciences research will be eliminated, funding for the state's online school will be halted during the second semester, and no new clients will be accepted for certain mental health care services.

"These restrictions have become necessary due to declining state revenues caused by the ongoing national economic downturn," Nixon said at a Capitol news conference.

The latest round of cutbacks raises the total eliminated by Nixon to $634 million out of $23.7 billion approved by lawmakers for state operations and capital improvements during the current fiscal year. About 2,300 full- and part-time state employee positions now have been eliminated, either by the Nixon or legislators.

Nearly all states are struggling financially because of sharp declines in income and sales taxes caused by high unemployment rates and falling consumer spending during the recent recession.

Missouri revenues were down 10 percent through the first quarter of its budget year, which began July 1. Nixon said Wednesday that revenues are expected to improve but still likely will end the fiscal year more than 5 percent below last year, marking a second straight year of decline. More budget cuts remain a possibility in future months, he said.


House Budget Committee Chairman Allen Icet said some of the cuts announced by Nixon appear to be prudent, though he added that he hates to see that children could lose access to an online education during the middle of the school year.

"My one concern is has he actually been aggressive enough, given where we are year to date" with the state's finances, said Icet, R-Wildwood.

Nixon and Republican legislative leaders alike have ruled out tax increases as an option for balancing the budget. But some advocates for the poor said the latest spending cuts dig too deep into state services and it is time for Missouri to consider boosting state revenues.

"These cuts have real meaning for Missourians," said Amy Blouin, executive director of the Missouri Budget Project, which analyzes fiscal policies for their affects on the poor. "They mean waiting lists for critical mental health services, a reduction in health care reimbursements, fewer mentoring programs for children and a loss of jobs at a time of already high unemployment."

Even though education and health care are affected by the latest cuts, Nixon stressed that there is no reduction in basic aid for public K-12 schools, colleges or universities and no eligibility restrictions for Medicaid recipients.

He said students still could take online classes through the state, but only if local districts paid for it.

Nixon's budget director, Linda Luebbering, said the state will cut $32.5 million from Medicaid. But she said it was too soon to know how much of that would come from reduced payments to health care providers versus other cost-saving measures such as a greater reliance on generic prescription drugs. She said provider payments would be reduced only for services in which Missouri's Medicaid reimbursement rate is higher than that of the federal Medicare program.

Nixon also emphasized that no prisons will be closed nor guards laid off, although he said the Department of Corrections may leave some guard vacancies open longer to save money.

Of the nearly 700 positions being eliminated this time, 493 are part-time and the rest full-time. Nixon said he opted against furloughs because they wouldn't have saved as much money.

None of the latest cuts will come from the governor's office -- a decision criticized by Icet as a failure by Nixon to lead by example. Nixon said his office took a 5 percent reduction previously.

Some interest groups already have been urging Nixon to reconsider his cuts.

After the Division of State Parks and Historic sites announced the elimination of 100 positions last week, an association of parks supporters suggested this week that Nixon should consider an alternative of temporary park closures, employee furloughs and job-sharing arrangements.

"Our association will support necessary actions to reduce costs, but we feel this must be achieved without causing extreme hardship to the dedicated staff that is largely responsible for Missouri's park system being rated as one of the best in the nation," said Susan Flader, president of the Missouri Parks Association.

Nixon said Wednesday that he appreciates the group's suggestions but still believes the layoffs are necessary.

See also:

Jefferson City braces for latest budget cuts




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limerick54 wrote on Nov 6, 2009 11:47 AM:

" Shut down the state gov't for a month, fire everyone (eliminate all jobs and departments) and start over. Don't like it? Too bad. The "state workers" have suckled the teat of the citizens of Missouri for long enough. I've known MANY "state workers" (this really should be state employees, state workers sounds like people in grey coveralls in 1984) that brag about how little they do. I would imagine you could randomly eliminate 2/3 of the people and everything would still get done if everyone actually WORKED. "

AMAZED wrote on Nov 3, 2009 12:00 PM:

" So where's the stimulus? MAC of course could care less about lost jobs and families without incomes. He thinks 10% unemployment is a raise! "

ts20 wrote on Nov 1, 2009 8:02 AM:

" just -blame geo.w.bush and the republicans -------like oboma does .haha "

carpidiemgoats wrote on Oct 31, 2009 7:11 PM:

" Why doesn't Nixon just do away with a few of the dept heads? most don't do their jobs and those few that do.. spend their time harassing their employees... male and female...Just cut a few of those jobs and the budget would straighten out "

carpidiemgoats wrote on Oct 31, 2009 5:28 PM:

" Why doesn't Nixon just do away with a few of the dept heads? most don't do their jobs and those few that do.. spend their time harassing their employees... male and female...Just cut a few of those jobs and the budget would straighten out "

roseybud wrote on Oct 30, 2009 7:40 PM:

" Interesting that Nixon staff got nice bumps when he took office, and Nixon travels on other department budgets, the same departments that are laying off carrier workers. What's good for the goose apparently isn't good for the gander. Nixon cares about his political future, and couldn't care less about the local economy or state workers. Just another political machine like the Blunts on the right, Nixon is worthless. "

bluenurse wrote on Oct 30, 2009 5:47 PM:

" With drug testing, you always have the potential for false positives, as well.

Although, I guess somebody could make lots of money by going into the clean-urine business (smile). "

bluenurse wrote on Oct 30, 2009 5:46 PM:

" I agree in part about the drug testing. However, if you take people's benefits away, how do they live? I would suspect crime would increase.

Where I live, there has been a serious increase in crimes such as burgularies - more homes in good neighborhoods are being robbed & LE attributes it to the fact that unemployment has reached 10% here in St. Louis. Also, sometimes cars are broken into at night; sometimes several blocks on one street, if the perp sees anything worth stealing. Yeah, I know, you shouldn't leave valuables in cars, but who doesn't have a CD or pair of sunglasses in their car. Stuff like that is being stolen. "

maiximista wrote on Oct 30, 2009 3:36 PM:

" And before anyone goes ballistic over my "tattooes" comment, I remind you that I am specifically speaking about people who are receiving government assistance because they do not make enough money to pay their own bills. NEWSFLASH - If you can't pay all your bills without assistance, you can't afford tattooes. When you make all your own money, then you can get your tattooes. If I pay for a tattoo, I want it to be on my body, not yours. "

maiximista wrote on Oct 30, 2009 3:34 PM:

" And that is being generous. If it were up to me, when it comes to providing people with money to live that comes from taxpayer generated revenue, there shouldn't be second chances. People need to come to respect the fact that someone else is paying their way, and if they don't respect it, they don't deserve the privilege. I know, I am a heartless wonder. I'm just tired of actually working everyday to pay the expenses for so many who abuse the system. I don't think I should have to work every day to pay for their dope (and booze and smokes and tatooes. "

maiximista wrote on Oct 30, 2009 3:30 PM:

" Scooby - as fas as I can see, since they are not required to request assistance, participation would be voluntary. Ultimately, if they want to continue to receive their free money & free medical care, they will have no problem submitting to drug testing.

One bad drug test and you lose your benefits for 3 months and have to have a clean test to be reinstated. Second bad drug test and you lose your benefits for a year and have to have a clean test to be restated. 3rd bad drug test and you lose benefits FOR THE REMAINDER OF YOUR LIFE. Like baseball, 3 strikes and you are out! "

maiximista wrote on Oct 30, 2009 3:27 PM:

" Nbeb - I like your thinking on this one. Make random drug testing a requirement to receive public assistance. Instituting the program in itself would cause a decline because you know a lot of those using drugs while on assistance would give up their assistance before giving up their drugs.

A lot of people have to participate in random drug testing to have their jobs which generate their personal income, so why not require those doing nothing to generate their income to participate in the drug testing as well.

An excellent idea, Nbeb. "

scoobydo wrote on Oct 30, 2009 12:03 PM:

" Yeah lets waste a few million plus in the hopes we might catch a few people. We don't need to care about no stinkin due process do we nbeb? I don't know why they wasted all that time writing up the constitution. "

nbeb wrote on Oct 30, 2009 9:17 AM:

" How about drug testing for people on welfare? Why should MY tax dollar support them to party? Or take some luxuries away from Prisoners? How about looking at some of the higher ups in state offices that got their position due to brown nosing, and can't even do their job?
Why cut state parks? That IS income for Missouri! "

online_editor wrote on Oct 29, 2009 4:08 AM:

" (Editor's note: I'm moving the following comments over from their original location on an earlier version of this story.)

stateEmployee wrote on Oct 28, 2009 6:18 PM:
" I also wish that Nixon would stop cutting necessary funds from Social Services. He says no cuts for Public Safety and yes I know we need those folks, but the Missouri citizens are hurting and when they need help feeding and providing medical coverage for their families, they come to Social Services. These are necessary state resources they the citizen depend on, cutting here will have negative affects on how well our citizens are served. Nixon, why don't you fire some of your buddies! "

stateEmployee wrote on Oct 28, 2009 6:13 PM:
" I wish Nixon would accept nominations for cuts. I know several folks that sit around constantly and never have any work to do. While others like my myself are loaded with work and make half of those sitting around. They always escape job cuts because they sat around for 20+ years and the state is afraid to kick them out. Trim the fat of state government! I know it would stink to lose your job, but stop cutting the hard workers and fire those lazy, dead weight, waste of state resources, waste of tax money folks that have gotten into the higher paid positions just because they had no where else to go. "

happy wrote on Oct 28, 2009 6:06 PM:
" wow....this is crazy...how about cutting your private plane and fancy dinners Mr. Nixon!! HIs man is something else. "

Byron W. wrote on Oct 28, 2009 4:02 PM:
" from Mac's site:
Ignore the California whinery. It's still a dream state. In fact, ....is still the cutting edge of the American future economically, environmentally, demographically, culturally and maybe politically.

It is not a dream state it is a state living in a fantasy world. A lot if California's problems are caused by what the loony author thinks are cutting edge. "

sandhouse wrote on Oct 28, 2009 2:06 PM:
" I read the article....and it has some valid points. A couple things jumped out....absolutely no mention that I saw of "real estate". Check out the foreclosure rates in CA...they are some of the worst in the nation. Also this part....""We have an incredibly dynamic economy, but we'll still end up in federal receivership if our government can't pay its bills," says historian Kevin Starr, a prolific chronicler of the state.""

I think that's a very big "if" right now. The scale of the debt CA is carrying...and still adding onto...is staggering. Taxing weed and offering tax credits for govt subsidized solar panels isn't going to cut it imho. I haven't seen the WILL to stop the spending and borrowing. "

Mac1974 wrote on Oct 28, 2009 1:39 PM:
" Sheesh sandhouse, you're jumping on the "doom and gloom for Cali" bandwagon too, huh? Hey, I heard someone in southern Kentucky saw an alien spacecraft last night, which more than likely makes it true. Right?

Here's a different take on California......
http://www.time.com/time/nation/article/0,8599,1931582,00.html "

Rockyv wrote on Oct 28, 2009 1:37 PM:
" Good job Nixon! It was time to end the enormous amount of workers sitting around the capitol doing nothing. Now maybe we can get some accountability and work out of those who stay on! Another term for the good governor! "

Byron W. wrote on Oct 28, 2009 1:13 PM:
" sandhouse wrote "MO need not share that fate."

But we will pay our share for the bailout(s). "

sandhouse wrote on Oct 28, 2009 1:10 PM:
" As painful as this is for the employees and family involved...it is the right thing to do. One only has to look to California, NY, or MI to see what happens when state fiscal issues are ignored. I think one or more of those states will end up defaulting within a year or so. MO need not share that fate. "

gofish wrote on Oct 28, 2009 9:58 AM:
" I would hope that services/budget cuts be targeted to agencies that provide non-critical services, such as the MO Division of Tourism and the Film Commission. Missouri Parks provides the only affordable vacation left. It was a bad idea to cut there. I'd imagine there is more fluff at the university than one can shake a stick at. I recommend gastric bypass for the whole University system. "

fishing01 wrote on Oct 28, 2009 8:59 AM:
" "agency". "

fishing01 wrote on Oct 28, 2009 8:59 AM:
" I understand the Universities and education will not be touched. I can name a dept. at MU right now that is such a waste. Its a video service that is actually duplicated by another state agencies. And to top it off, they hire uneducated people and pay them out the wazoo. Not only that, they have no dress code and can come and go as they wish. Someone really needs to check into this dept. " " "


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