Missouri tapping stimulus money to pay tax refunds

Thursday, May 21, 2009 | 2:47 p.m. CDT; updated 4:50 p.m. CDT, Thursday, May 21, 2009

JEFFERSON CITY — Missouri is using $250 million of federal economic stimulus money to pay state income tax refunds.

Gov. Jay Nixon's administration said Thursday that it has transferred stimulus money into the state's general revenue fund to accelerate payment of tax refunds. It said the $250 million should clear up virtually the entire backlog of refunds for the 2008 tax year.

Last month, the state acknowledged it was delaying tax refunds for so that it could meet other cash flow demands such as paying employees, public schools and medical providers.