The governor's actions to restrict fiscal year 2012 General Revenue Fund (GRF) expenditures violated the Missouri Constitution because actual revenues exceeded estimated revenues. Lawful mechanisms that would preserve the constitutionally-mandated separation of powers were available to address any crisis impacting the budget. When a significant event occurs that requires additional spending authority, all or most of that funding can be included in the next year's budget.
For example, in fiscal year 2012, the governor restricted approximately $172 million (excluding the $56 million Facilities Maintenance and Reserve Fund transfer restriction) to pay for disaster recovery related to spring 2011 flooding and a massive tornado that struck the city of Joplin on May 22, 2011, but less than $7.8 million was actually spent on these disasters that year. The governor could have lawfully reduced planned spending authority by vetoing line item budget items (subject to a potential override vote of the General Assembly).
The Office of Administration has not recorded governor withholding activities in the state's accounting system in a fully transparent manner as required by law.
To read the full report, visit: http://www.auditor.mo.gov/AuditReports/AudRpt2.aspx?id=57
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