Missouri spends foreclosure settlement money on budget gaps
Missouri Governor Jay Nixon (D) announced last week that his state would use some of the money from the bank foreclosure fraud settlement for purposes other instead of helping struggling homeowners in the state.
According to The Kansas City Star, Nixon said that $40 million of the $196 million that Missouri will receive as part of the settlement will fund education shortfalls created by the state’s recent budget cuts.
The move was approved by the state’s attorney general, Chris Koster (D), who signed onto the agreement with the banks.
Although the $26 billion foreclosure settlement signed last week was designed to help struggling homeowners, there is no mandate requiring states who’ve received money from the settlement to use it solely for those purposes.
Last week, Wisconsin Governor Scott Walker (R) said he would use some of his state’s settlement money to cover a budget gap his policies help create instead of helping homeowners.
(h/t Think Progress)