Nixon Blocks $46M in State Spending to Fix Missouri Budget

Missouri Gov. Jay Nixon says he's blocking the state from spending more than $46 million in order to balance the budget.

Nixon on Monday said the spending restrictions are needed because the state no longer can count on an anticipated $50 million from a tobacco settlement agreement.

The money is part of an annual payment that tobacco companies make to states under a 1998 settlement covering the costs of providing health care to those with tobacco-related illnesses.

Nixon and lawmakers banked on using the $50 million this fiscal year. But a recent appeals court ruling means that the companies don't owe Missouri that money.

Nixon cut funding for several new programs in response. He also restricted money for a number of planned health care provider rate increases.