JEFFERSON CITY - Two days after the Missouri Supreme Court ruled Governor Jay Nixon can withold money to keep the budget balanced, Nixon announced the state will get additional revenue this year.
Nixon announced that the state will be saving $900,000 this year and $4.8 million over the next 15 years. The state was able to refinance some of its bonds and achieve the savings, according to Stacey Neal, Director of the Office of Administration's Accounting Division.
In a press release, Nixon said the state's AAA credit rating made the refinancing possible.
"Our strict fiscal discipline and balanced budgets have meant lower interest rates and reduced principal, which in turn, has translated into millions in savings for taxpayers,” Nixon said.
Including this instance, the state refinanced or got a refund on its bonds three times this year. Neal said the state previously got a refund of its bonds related to the Edward Jones Dome in St. Louis and the Missouri Development Finance Board. The state has saved $15.6 million as a result of bond refunds and refinancing.
Neal said the state will not likely be able to achieve any more savings this year through its bonds.
On Tuesday the Missouri Supreme Court ruled Nixon had the right to withold state funds in order to maintain a balanced budget. State Auditor Thomas Schweich challenged Nixon's witholdings in court in 2011.
Budget Director Linda Luebbring was unavailable for comment as to what the state will be doing with the extra $900,000.