Senate passes midyear budget that leaves shortfall

JEFFERSON CITY, Mo. -- A $172 million supplemental spending bill passed the Senate on Thursday, but it leaves the state about $30 million short of balancing its budget in the current fiscal year.

The Senate approved the measure, intended to cover the state's expenses through June 30, on a vote of 31-1. The House has already passed a $160 million version, and a compromise will likely have to be negotiated when lawmakers return April 2 from a weeklong break.

The Senate's larger figure is from newly expected federal money for homeland security.

Gov. Bob Holden had asked that as part of the supplemental spending bill, lawmakers transfer about $30 million from various treasury accounts to fill budget gaps in other areas of government.

The House had approved deductions of $13.5 million from 240 state accounts by charging the funds for the cost of managing them.

But the Senate Appropriations Committee voted to cut out the money transfers, resulting in the $30 million shortfall. If lawmakers do not come up with a way to generate the money, Holden likely would have to withhold more cash from state agencies.

Holden already has vetoed or withheld about $600 million in appropriations from the state's roughly $19 billion budget for the fiscal year ending June 30.

Each year, lawmakers consider a supplemental appropriation bill to cover unexpected expenses or shortfalls in the budget.

The legislation includes $2.2 million for startup costs of the Missouri Senior Rx Program.

Both the Senate and House versions include provisions for transferring $88.5 million in tobacco settlement funds to the state's general revenue account to help balance the budget.