LU, Capitol benefit from Nixon releasing funds

Lincoln University got another $250,000 from the state Friday - to be used to match its federal land grant money.

Another $250,000 now is available for renovations in the Capitol Complex.

Both of those increases are part of $43.23 million in withheld funds Gov. Jay Nixon released Friday morning.

"I'm pleased to report that, as Missouri's economy continues to pick up steam, state revenues are reflecting this positive trend," Nixon told reporters at a Friday morning news conference in his Capitol office. "(Thursday), the Division of Budget and Planning released the state's March general revenue report, and it was extremely positive - pushing net general revenue collections for the year up to 6.8 percent.

"While that's still below the level needed to fully fund the budget passed by the General Assembly last year, this is a substantial improvement."

Federal regulations require land grant institutions and their states to match each federal dollar with another dollar "from non-federal sources."

Other programs benefiting from the released funds include $3.5 million for the state's information technology security upgrades, $2.18 million for grants to Federally Qualified Health Centers, $200,000 for local firefighter training and $670,135 to the Corrections department for increased institutional costs.

The governor noted Missouri's latest employment report showed 8,400 more jobs in February, compared with 12 months earlier, "following a solid increase of 11,200 jobs in January. More folks are getting back to work, meaning more funding for key priorities that will move our state forward."

However, federal statistics released Friday show a possible slowdown in the unemployment rate improvements.

Nixon said, "I'm comfortable with the numbers we've released today - we always watch it very carefully."

Even with the released money, Nixon's administration still is withholding more than $408.1 million in general revenue funds that were passed in last year's budget bills - but withheld over concerns revenues wouldn't be enough to pay for the expenditures.

"It would take some continued, significant growth for us to release additional dollars," the governor told reporters Friday.

Budget Director Linda Luebbering provided a list of 118 items still being withheld, that includes:

• $3,856,200 for the state's deferred compensation match, which is where the state provides extra money for state employees' retirement.

• $876,833 for related fringe benefits.

• $47.35 million for Capitol Complex construction and renovation projects.

• $38 million for state office space - this money originally was planned for a new state office building at the MSP redevelopment site.

• $390,000 for replacing a Highway Patrol garage at the Troop F headquarters, that was destroyed by a fire.

• $15 million for school transportation, in the "foundation" formula used to distribute state aid to public schools.

• $1 million for the Parents As Teachers programs in the state's school districts.

• $2.5 million for reading instruction.

• $4 million for the state's "Bright Flight" scholarship program, to help Missouri high school graduates attend college in Missouri.

• $11 million for the "Access Missouri" scholarship program.

• $1.25 million for tourism.

• $4.1 million for school safety grants.

• $1 million for ex-offenders' alcohol and drug abuse treatment.

• $17.8 million for adult dental care benefits.

• $16,721,607 for hospital payments.

Elections bill veto

Nixon announced he had vetoed an elections-related bill lawmakers passed this week, that included a provision "that would prohibit former superintendents from ever running for election to the school board in the district in which they previously served."

The governor explained: "There are a number of legitimate requirements to run for office - like age, residency and criminal history - but this isn't one of them.

"In a democracy, otherwise qualified candidates should not be banned from serving the public simply because of their expertise. Citizens have a right to decide who represents them, and the state shouldn't be in the business of telling local communities who they can - and cannot - elect, without a compelling reason to do so."

The provision was prompted by concerns in St. Joseph that a former superintendent wanted to keep controlling the district he once ran. It had an emergency clause so, if Nixon had signed the bill into law, it would have gone into effect immediately and "would have disqualified at least four former superintendents who are running for school board and are on the ballot this coming Tuesday," Nixon noted. "Three other former superintendents, who currently serve on school boards, elected by their local citizens, would be prohibited from seeking re-election."

The governor said voters always "have the opportunity to not re-elect people. ... You've got to trust the voters and you've got to trust the local voters to make the choices about who they want on their boards."

Budget block grants

Noting the Legislature's budget-writing "is a process," Nixon didn't reject an idea approved by the Senate Appropriations Committee to replace line-item budgeting with block grants for some state operations in the Mental Health, Social Services, and Health and Senior Services departments.

However, he cautioned: "This would affect not only the $130 million they have, but also federal matching funds, so it's about a $300 million cut that would affect seniors, Missourians with disabilities, abused and neglected children, foster kids (and) folks with mental illness.

"A $300 million cut in this area would be very difficult on those individuals who are in specific, and dire, need of these services."

State auditor

The governor said he's still considering who to appoint as a successor to state Auditor Tom Schweich, who killed himself Feb. 26.

"We're getting into the final stages," Nixon told reporters. "We're not very far away, now. Obviously, it's a big decision."

Nixon named former Chief of Staff John Watson as an interim auditor, even though the Constitution makes no provision for a temporary appointment if the auditor's office becomes vacant.

The governor didn't provide details of who he might be considering - but many Capitol observers expect Nixon, a Democrat, will appoint a Democrat to succeed Schweich, a Republican.

Some expect the new auditor will remove Schweich's top-level office staff - like Deputy Auditor Harry Otto or Chief of Staff Trish Vincent.

But Nixon has made no comment on how he's deciding who the next auditor will be, or what he expects that person to do once in office.

Also, auditor's spokesman Spence Jackson cited a fear of being unemployed in the note he left before killing himself a week ago.

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