House and Senate Republicans continue to be divided on many issues in the budget, including the passage of a $70 million tax amnesty program.
The result is that general revenue spending actually rose, and the budget plan now has a $4 million shortfall.
The plan which was voted down, would have eliminated a proposed 2 percent wage increase for Missouri state workers making less than $45,000.
The Senate ended a two day gridlock and passed the state’s $24 billion budget early Wednesday morning.
The Senate adjourned near midnight after eight hours without a compromise on Missouri’s $24 billion budget.
The Senate will began debate Monday on a budget freezes spending on both K-12 and higher education.
Senate Appropriations Chairman Kurt Schaefer, R-Columbia, said this was probably the most difficult budget year ever.
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It would be the largest percentage cut to Missouri’s public universities in the past two decades.
Governor Jay Nixon’s proposal would call for the universities to provide the state $107 million from their reserves.