Governor Blunt, House Budget Chair Take Action against Nixon for Money Mismanagement, Statute Violations

FROM THE OFFICE OF THE GOVERNOR

June 30, 2008

Contact: Jessica Robinson, 573-751-0290


JEFFERSON CITYFollowing an investigation into Attorney General Jay Nixons office that found very serious violations of state statutes, Gov. Matt Blunt today took action at the recommendation of House Budget Chairman Allen Icet to strip Nixon of the remaining funds his office mishandled in a multi-state settlement and place control of the entire Attorney General's Trust Fund with the Office of Administration.

The investigation into Nixons office found that the Attorney Generals office deliberately deposited $630,000 into his trust fund instead of the account to which the settlement check was made and began spending the money without proper authority. Only $142,000 of the mishandled money remains.

"Chairman Icet expressed to me his deep disappointment with the way Jay Nixon mishandled this money. The power of appropriation rests solely with the legislative branch and intentionally attempting to usurp this power by deliberately depositing a settlement check in the wrong account will not be tolerated," Gov. Blunt said. "At Chairman Icets request, I have directed the Office of Administration to control the remaining balance of $142,000 so the General Assembly can appropriate the money where it belongs. I am also ordering additional oversight of Attorney General Nixon's spending to ensure the peoples assets are spent in accordance with the law, not the whim of Jay Nixon and his office."

At the request of House Budget Chair Allen Icet, Gov. Blunt had postponed action on House Bill 2012. Rep. Icet requested the delay until he could review the investigation report. Today marks the last day of the fiscal year and the deadline to act on the states budget.

Gov. Blunt signed House Bill 2012 but called for the Office of Administration to maintain control over the Attorney Generals Trust Fund Account. On May 29, the Office of Administration suspended Nixons authority to spend money in the Attorney Generals Trust Fund. To protect Missouri taxpayers from further abuse of the fund by Jay Nixon's office the governor stated today that Jay Nixons use of the account should remain restricted to only approved expenditures.

Jay Nixons office was under investigation for six-weeks by the Office of Administration at the request of Chairman Icet. Attorney General Nixons Office failed to fully cooperate with the investigation, but in a report released last Wednesday, investigators found that Jay Nixons office violated state statutes by deliberately misdirecting $629,987 in state funds to a trust fund account controlled by Jay Nixon. Records show Jay Nixon's office intentionally deposited a settlement check from Caremark, a prescription drug benefit manager, into the wrong account.

House Bill 2012 governs spending for statewide elected officials, the Judiciary, the Office of State Public Defender and the General Assembly.

The states Fiscal Year 2009 Budget governs state spending between July 1, 2008, and June 30, 2009.