Governor Nixon is meeting with legislative leaders today to rewrite the proposed state budget for the next fiscal year. Failure of Congress to approve 300-million dollars in supplemental Medicaid spending and continued declines in state tax collections have blown a hole in the proposal he presented in January.

Senate appropriations chairman Rob Mayer of Dexter says his meeting with Senate Republicans was a “healthy discussion.” He says Nixon recognized the budget he submitted January 20th is no longer valid. Mayer says lawmakers and the Governor’s staff will try to agree on a new state revenue estimate so planning for fiscal 2010-2011 budget can go ahead.

The state constitution requires a balanced budget. This year’s budget (fiscal year 2009-2010) was based on a conservative income estimate but already has been reduced by the governor by several hundred million dollars because tax revenue is well below anticipations. Nixon already has announced more cuts will be made in state spending in the remaining four months of the fiscal year.

Bob Priddy interviewed Rob Mayer after this morning’s meeting 3:35 mp3