State Auditor Tom Schweich announced today his office has filed a lawsuit in Cole County Circuit Court asserting Gov. Jay Nixon violated the Missouri Constitution and failed to utilize established accounting principles when he withheld more than $170 million from state agencies, programs and educational institutions prior to the start of the current fiscal year.
In June, the state auditor’s office announced the commencement of a regularly scheduled audit of the Missouri governor’s office. As veteran auditors (who have served multiple administrations) reviewed general accounting and fiscal practices of the governor’s office, they also reviewed the governor’s accounting procedures and alleged legal authority for more than $170 million in withheld appropriated funds. On August 19, the state auditor’s office sent a letter to the governor expressing serious concerns about the legality and financial basis for his withholds. The letter noted that neither the governor nor any budget official could provide any supporting data (spreadsheets, ledger books, cash balance sheets, projections, studies, analyses or any other data) to support the withholdings. The auditor’s office found the withholds to be contrary to the express language of Missouri Constitution as the governor made the withholdings prior to start of the current fiscal year. The Missouri Constitution states the governor can only make withholds based on current fiscal year revenue data, at which time there was none.
The withholds were made from appropriated funds for: Parents as Teachers, Bright Flight Scholarships, Medicaid, community colleges and state universities, veterinary student loans, the Missouri Film Office, community intervention programs, Area Agencies on Aging (funding partially restored), domestic violence grants (funding partially restored), children’s treatment services, the judiciary, trade zone facilities, regional port authorities, math and science tutoring, the Scholars and Fine Arts Academy, the Missouri Lottery, the Missouri Department of Transportation, the Missouri Federal and State Technology Partnership Program (MOFAST), MOHELA Projects, the Missouri State Penitentiary (MSP) Remediation, marine maintenance facility, civil detention and legal fees, Alzheimer’s grants, Access Missouri Scholarship, crisis care services (funding partially restored), the Missouri Research and Education Network (MOREnet), the Office of Child Advocate, Boonville Readiness Center, community development corporations, transportation, early grade literacy, industry training, local air pollution control, eating disorders staff & expenses, mediation and firefighter training.
The auditor also noted that the governor withheld funds from the Republican controlled legislature and the Republican auditor, but did not cut funds for his own office or any Democrat statewide elected official.
“Our state has recently experienced natural disasters of historic proportion,” Auditor Schweich said. “There is no dispute that the victims of the tornadoes and floods must be fully compensated for their tragic losses. But the process must be legal and transparent. There are many legal and transparent ways to do this.”
Auditor Schweich noted that litigation was a last resort to resolve the withholding issue.
“Our office does not like litigation. We prefer matters to be resolved by dialogue,” Auditor Schweich said. “I recommended the governor work with the legislature on this issue. Instead of correcting his actions and working with the legislature, the governor has said, ‘the auditor is wrong.’ These withholding are critical as they will result in programs ending and jobs being lost.”