Nixon announces $46.1 million in cuts to cover tobacco settlement shortfall

Photo courtesy of Creative Commons
Photo courtesy of Creative Commons

Gov. Jay Nixon has announced $46.1 million in cuts to the state budget to help cover a revenue shortfall resulting from a settlement with tobacco companies.

A state appeals court ruled in September that the companies did not owe the state $50 million, as a trial court had previously ruled. An appeal is expected, but it is not likely to conclude this fiscal year.

The cuts are spread out over several state agencies, with the Department of Social Services seeing the largest budget reductions, at $18.2 million.

The cuts include $12.6 million sliced from funds for the Department of Mental Health, $3.4 million from a nursing facilities provider rate increase and $1 million from funds for social innovation grants.

Read more from the Kansas City Star and St. Louis Public Radio

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