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Gov. Nixon freezes $400 million in proposed spending

JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon has frozen $400 million of spending for education, capital improvements and state services because of concerns that legislators could override his veto of an income tax bill.

 

   Nixon announced the spending restrictions Friday while signing a nearly $25 billion operating budget for the 2014 fiscal year that starts next Monday.

 

   Earlier this month, the Democratic governor vetoed a Republican-backed bill that would have phased in a tax deduction for business income over the next five years. That bill also would have gradually reduced the income tax rate for individuals and corporations over the next decade.

 

   Lawmakers would need a two-thirds majority vote in both chambers to override Nixon's veto during a September session.

 

   Nixon says the bill could cost Missouri hundreds of millions of dollars of revenue.

 

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