Higher Education students and faculty were devastated when Governor Nixon proposed a 12.5 percent funding cut during his State of the State Address in January. Things changed after Missouri won a mortgage settlement against the federal government, freeing up an additional $40 million for higher education.
The General Assembly has to travel a long road in political compromising by the budget’s May 11th deadline…
Things to Keep in Mind About Missouri’s Budget:
Missouri has unique mandates and situational circumstances that both complicate and define our budgeting process for the state level…
- Missouri’s constitution includes a Balanced Budget Amendment. This means that the state of Missouri will not pass a budget which will spend more revenue than is actually available, thus preventing a budget deficit.
- The Hancock Amendment is a tax and expenditure limitation that prevents the state from collecting more than 5.6 percent of an individual’s income tax. As of this year, income taxes collected are $4 billion below the constitutional threshold, or, 17 percent of the state’s $23 billion budget.
- The school funding formula, the Foundation Formula, is defined by a constitutional mandate that at least 25 percent of budgeting revenues be directed to K-12 education each fiscal year. As of 2011, the K-12 fund received the largest portion of our state’s budget- 36 percent.
- Some social service programs are federally mandated, and ever-exanding, as more and more Missourians enroll. Missouri’s social programsreceive the second largest portion of our budget- 29 percent. Federal modies can also be revoked if the state does not fund programs at mandated levels, just another way that legislators hands are tied during the appropriations process.