February 11, 2009

Gov. Nixon increases proposed extension funding by $10.1 million

Gov. Nixon identifies surplus state funds; recommends reallocation to university extension programs

JEFFERSON CITY, Mo. -- Gov. Jay Nixon today filed a Governor's Amendment to his FY 2010 budget proposal to increase the appropriation for the University of Missouri and Lincoln University extension programs by more than $10.1 million. The Governor's initial FY 2010 recommendation included a combined cut of $15.4 million for these programs.

In making today's announcement, Gov. Nixon noted that this larger appropriation was possible because his administration has identified surplus funds remaining after the construction at the new women's correctional facility at Chillicothe. During Gov. Nixon's budget review process, the university extension programs were one of the last programs cut, so when Gov. Nixon identified these surplus finds, this was the first priority to be restored.

"Because of our careful review of the state budget and efficient management on site in Chillicothe, we have the resources necessary to increase our recommended appropriation for the extension programs at both MU and Lincoln University," Gov. Nixon said. "During these difficult economic times, we've had to make tough choices about which priorities state government will be able to fund, and I will always remain committed to the principle that here in Missouri, we pay as we go. The university extension programs provide important services for Missourians, and I'm pleased that we have the opportunity to allocate additional resources to fund their work."

Overall, because of the ongoing economic crisis, Gov. Nixon cut or eliminated 50 state programs and 1,300 state employees to balance his FY 2010 budget proposal.

Background on the surplus Chillicothe funds

Immediately upon taking office, Gov. Nixon and his administration began a detailed review of the state's budget. As the review has progressed, Gov. Nixon has identified savings of more than $10.1 million in the project fund for construction and renovation at the women's correctional facility in Chillicothe, which opened in December 2008.

The state General Revenue Fund will be reimbursed $10,121,658 for interest paid on bonds issued by the Board of Public Buildings to finance the Chillicothe project. The breakdown of the amount follows:

• Because the state General Revenue Fund made interest payments for this project during construction, $7,035,942 from the Project Fund is immediately available for transfer to General Revenue.
• An additional $2,677,234 will become available for transfer when the General Revenue Fund makes its next payment on the bonds on April 1, 2009.
• The final $419,482 becomes available after an Oct. 1, 2009, interest payment.

"Over the coming years, we will continue to look for new opportunities to make government more efficient, effective and response to the needs of taxpayers," Gov. Nixon said. "And when we find surplus dollars, we'll put them to the most responsible, effective use possible."

The release of these funds from the Chillicothe project account is contingent upon an affirmative vote by the state Board of Public Buildings, which will be scheduled next week.