Jobs to be big part of Mo. State of the State

Missouri Gov. Jay Nixon

UPDATED: January 17 at 9:49pm

Tuesday night Missouri Governor Jay Nixon proposed cutting neary 23 billion dollars from Missouri's operating budget for next fiscal year.

The governor laid out the details of his plan in his annual State of the State address.

The plan assumes a restructuring of state debt and saving from the state Medicaid program.

It also anticipates an increase in collected revune as part of an amnesty period for people with overdue taxes.

Some others major points of his plan include:

1. A 12.5 % cut in state aid for colleges and universities for the 2012-2013 school year.

This would be the third straight year for such cuts.

2. A proposed a slight increase of 5 million dollars to the state aid for Missouri public schools next school year.

3. Finally, 816 state jobs would be eliminated by the begining of the fiscal year on July 1st.

For the people who survive the cut, the Governor proposes giving them a 2 percent raise starting on January 1st.

If the plan is passed Missouri will have lost 4 thousand 181 state employees since Nixon took office in 2009


Missouri lawmakers eagerly await Gov. Jay Nixon's State of the State address.

Our sister station KRCG's

Kermit Miller

reports that inquiring minds want to know how Nixon plans to deal with a $500m shortfall in budget money.

Click here

for his complete story.

The disappearance of federal stimulus money leaves the administration with few, if any, options for new spending.

But the Governor has spent the last week traveling the state to promote a new jobs creation package, which will come with a price tag.

The Governor says it gives the state everything it needs to make sure it has the strongest workforce possible.

The Missouri Department of Economic Development is under attack for offering tax credits to companies with little success in producing jobs.

So the Governor is working to rehab his job creation effort.

His "Missouri Works" initiative provides millions in new tax incentives for high-tech companies and next-generation automobile manufacturing. He wants a major new commitment to developing exports, and he wants more money for job training.

The Governor has not said how much "Missouri Works" will cost. He is expected to do so Tuesday evening during his State of the State address.

"We're still going to have to take hundreds of millions out of the budget," Gov. Nixon said. "Because the last part of the federal stabilization dollars ended. But, we will, like we have in the past, come together and balance the budget, hold the line and taxes and keep the state moving forward."

According to the Department of Economic Development, Missouri added 11,000 new manufacturing jobs in the first eleven months of last year.

The unemployment rate in Missouri is now at its lowest point in 34 months.

The speech is scheduled for 7 p.m. Tuesday evening and we will bring you more details as they are released.

(Story by KRCG's Kermit Miller in Jefferson City, Mo.)