By Maria Altman, St. Louis Public Radio
St. Louis – Governor Jay Nixon announced another $125 million in cuts to state spending Thursday.
The state is facing at least a $500 million shortfall for the next budget year that begins July 1.
While the governor proposed eliminating another 1,000 state jobs, 2,000 state vehicles, and selling some state buildings, he also targeted tax credits.
Nixon said Missouri's use of tax credits ballooned to $585 million over the last ten years.
"Tax credits of all types were passed with good intentions and were intended to create jobs and spark economic development, but in many cases tax credits aren't returning a positive return on investment," Nixon said.
Nixon said tax credits to help seniors and disabled residents pay utility bills will not be touched.
The governor also proposed cutting scholarships to students who attend private colleges and scaling back subsidies for bio-fuels.