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Missouri Governor Vetoes Tax Breaks – How Will #MOLeg Respond?



On the last day of the 2014 legislative session, the General Assembly passed several last-minute tax breaks to benefit several businesses and corporations. Governor Jay Nixon reacted strongly in favor of public education by vetoing those tax breaks, which would directly affect state-level funding for education in Missouri.

As a precautionary measure (in case his vetoes are overridden), the Governor also adjusted the General Revenue to account for the $425 million decrease in the state’s tax revenues that the proposed tax breaks would create.

The Governor, who has received tremendous criticism for this decision, was acting within his powers: The state constitution forbids it from operating at a deficit. A $425 million reduction in general revenues requires a $425 reduction in spending to keep the budget balanced—a reduction that directly affects K-12 and higher education students statewide.

Each year, 45% of Missouri’s General Revenue is spent supporting K-12 and higher education institutions. If the General Revenue is reduced by $425 million, Missouri students will receive a proportionate reduction in support. In short, big business will save $425 million, and schools will receive around $119 million less per year than they already do in state-level educational support.

Ironically, although it was a Republican-led majority that pushed for these tax breaks, Republicans have launched a high profile and well-publicized attack against Governor Nixon, calling students his “lowest priority”.

House Speaker Tim Jones, R-Eureka is one of the many Republicans speaking out:

“This is a governor who tells the public he wants to invest in our young people, but then is all too willing to make school funding his first target and show that public education is his lowest priority…”

In just a few days, Missouri’s lawmakers will reconvene in the capital to attempt to override Governor Nixon’s vetoes. If that happens, anti-tax advocates will win, and Missouri’s students will lose. If you believe that students should have priority over big business we encourage you to contact your local representative immediately to let him or her know that Governor Nixon’s vetoes should be supported—not overridden.




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