Matt Blunt vs. Matt Blunt's Budget Office

FOR IMMEDIATE RELEASE
Dec. 3, 2008

Missouri's Historic Economic Challenges: Gov.-elect Nixon Announces Initial Steps to Address Budget Shortfall

JEFFERSON CITY, Mo. -- One day after former Sen. Wayne Goode concluded that Missouri faces historic economic challenges and an estimated budget shortfall of $342 million for the current fiscal year (FY09), Gov.-elect Jay Nixon today outlined his initial plans to make government smaller, more efficient and more responsive to the needs of Missouri families. 

Gov.-elect Nixon announced today that upon taking office, he will direct each department and agency to submit proposals to reduce its expenditures.  Gov.-elect Nixon will also freeze all of the state's long-term contracts, require status reports on all capital projects, conduct performance reviews of each agency and instruct the Department of Economic Development to submit reports on all state tax credits to determine whether or not they have led to new jobs.

"The national economic climate has had a devastating impact on Missouri's economy, and together, we must take bold action to make government smaller, more efficient and more responsive," Gov.-elect Nixon said.  "It's not the time to point fingers or play politics. It's time to roll up our sleeves and make this government work for Missouri families.  By making tough decisions and instilling the right priorities, we will have additional resources to create new jobs, make health care more accessible and help middle-class families during these tough economic times.  We will live within our means, make government more efficient, and once again have a budget that reflects the needs of regular Missouri families."

Gov.-elect Nixon announced that he will take the following steps to address the state's budget shortfall upon taking office in January:

*         Upon taking office, Gov.-elect Nixon will require each department and agency to submit an action plan to reduce their expenditures for the current fiscal year.  The Governor-elect will review the recommendations and implement these reductions and other cuts he deems necessary.

*         Upon taking office, Gov.-elect Nixon will put into place a "procurement hold," or temporary freeze, on new long-term state contracts for goods and services.

*         Upon taking office, Gov.-elect Nixon will direct a review of all capital projects that have not already broken ground. For each project already under way, the Governor-elect will request a status reports regarding the percentage of completion, the cost to complete the job and whether each job is over or under budget. 

*         Upon taking office, Gov.-elect Nixon will order statewide performance reviews of every state agency and major program.  This top-to-bottom review will allow Nixon administration officials to identify additional areas where the state can be more efficient with the taxpayers' dollars.  As part of this process, the administration will seek areas where government can consolidate to be more efficient and cost-effective.

*         Upon taking office, Gov.-elect Nixon will instruct the Department of Economic Development to submit reports on all tax credits that have been issued to determine which are producing jobs and which are not.

Following his meeting with President-elect Obama yesterday, Gov.-elect Nixon is also optimistic that the Obama Administration will sign a stimulus package that will help generate additional jobs and economic growth in Missouri.

On Friday, Dec. 5, Gov.-elect Nixon will meet with the Senate Republican Caucus, where he plans to address the need to work in a bipartisan fashion to address these historic economic challenges and create new jobs. 

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Samuel Murphey
Press Secretary
Governor-elect Jay Nixon's Transition Team
(573) 751-1330
sam.murphey@govelect.mo.gov
www.govelect.mo.gov

Jay Nixon today outlined the straight-forward steps he will take to address the inherited budget shortfall.

No schizophrenic internal debate going on here.

on second thought--------