Gov. Nixon takes action to keep FY2016 budget in balance following loss of one-time tobacco settlement funds

Statement

Gov. Jay Nixon today announced that, due to the recent court ruling relieving tobacco companies of their obligation to pay the State of Missouri $50 million under the Master Settlement Agreement, spending will need to be restricted in order to maintain a balanced budget.

"Based on the St. Louis Circuit Court's decision, both my administration and members of the General Assembly counted on these funds being available when the Fiscal Year 2016 budget was passed," Gov. Nixon said. "Now that this ruling has been overturned, this unexpected loss of funds must be accounted for through spending restrictions to keep the budget in balance and our AAA credit rating intact. In taking these necessary actions, we have made every effort to minimize the impact on vital services by reducing spending from new programs yet to get underway and funding increases that would grow the size of government."

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