–by Brian Hook
The state budget for next fiscal year outlines a reduction in spending, similar to last year’s proposal by Missouri Gov. Jay Nixon. But it turns out, state spending is likely to increase this fiscal year.
The budget proposal for fiscal 2013, starting July 1, was released during the State of the State speech delivered by Nixon Tuesday.
The budget plan outlines $22.98 billion in total expenditures for the upcoming fiscal year, down .96 percent from the amount appropriated by lawmakers for fiscal 2012.
Originally, spending for this fiscal year was predicted to decrease by more than 1 percent, shrinking to less than a percent by December.
The state’s budget office, however, restated total expenditures for fiscal 2011 and adjusted the appropriation numbers for fiscal 2012 while preparing for the new budget plan.
Medicaid appropriations, which moved money around without actually spending any funds, were taken out of the final numbers, Missouri Budget Director Linda Luebbering told Missouri Journal.
Total expenditures, therefore, dropped 1.92 percent to $22.2 billion in 2011 compared to 2010.
Instead of dropping for this fiscal year, as originally predicted, spending is likely to increase.
If all of the 2012 appropriations are spent, total expenditures will increase by 4.4 percent to $23.2 billion this fiscal year. Luebbering warned, however, that it is not known exactly how much will be spent by the state until after the fiscal year has ended.
Putting aside the likelihood the final numbers for fiscal 2012 will change, not to mention the budget plan for fiscal 2013 will not be finalized until May, state spending reductions are rare.
In the last 30 years total expenditures have dropped year over year only three times.
Total expenditures increased 468 percent from $3.9 billion in 1981 to $22.2 billion in 2011.
