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State sgencies may face further withholdings

JEFFERSON CITY - The State's budget director warned that state could be $30 million short this fiscal year, and would not rule out further withholdings from state agencies.

Budget Director Brian Long said the state would need to come up with the extra money after a House committee Tuesday rejected a plan to tap into unused money in state accounts.

The cuts would be on top of the $506 million already withheld by Gov. Bob Holden this fall and would have to be made before the end of the fiscal year in July.

Holden had proposed "sweeping" a portion of unspent money from hundreds of various state accounts to cover a drop in revenues, but the House Budget Committee rejected the plan Tuesday. This means the governor may be forced to cut further this year to maintain a balanced budget.

The cuts would be especially painful for agencies because they come so late in the fiscal year. With only a few months left, there is less unspent money to cut from.

House Budget Committee Chairman Tim Green said he would try to reinstate Holden's plan when the bill comes to the floor, but other Democratic lawmakers said there wasn't support for the fund sweep.

Rep. Chuck Graham, D-Columbia, said he thinks public colleges and universities would be spared any additional withholdings, with other state agencies taking the bulk of the cuts.

State budget director Brian Long said there were no specific plans as to where the extra money would come from, and that Holden was holding out hope that the funds could be tapped.

"He's directed me to try to get this passed on the floor," Long said.

Holden first announced budget withholdings last fall when state tax revenues fell. Because the state constitution requires the state to maintain a balanced budget, Holden announced he would withhold $506 million from state agencies, including $43 million from the University of Missouri System.

Without the fund sweep, Holden would have to cut a further $30 million from state agencies before July 1.