On Friday, June 10, Missouri Governor Jay Nixon announced that he is withholding an additional $57.1 million in general revenue from next year’s state budget (FY2012 beginning on July 1, 2011). Nixon signed the state’s $23 billion budget into law on Friday but withheld the $57.1 million to allow the State of Missouri to provide further disaster assistance to both tornado ravaged Joplin and areas devastated by flooding along the Mississippi River.
MCC budgeted a 4.81% reduction in state funding for the coming fiscal year. After Nixon’s action on Friday, MCC’s budget will see a total reduction in state funds of 7%. This means that MCC will lose an additional $650,000 from its state appropriation bringing the total state aid to $30.7 million.
In the short term, MCC will utilize its emergency contingency fund to offset the 7% cut. However the additional state budget cut will deplete MCC’s emergency fund. We will continue to identify cost savings or revenue opportunities to replenish the emergency fund.