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Students walk on the Missouri Western State University campus Thursday afternoon. Western, along with Northwest Missouri State University, received a slight budget increase because of federal stabilization money.

JEFFERSON CITY, Mo. — State lawmakers passed a $23.1 billion operating budget Thursday night that grew $700 million from the current year, despite a lagging economy.

Federal stimulus money helped fill the holes that dips in state revenue left, which fueled heavy debate through the entire budget process. That peaked Thursday among state senators, whose approval in the evening was the last step in final passage constitutionally required by 6 p.m. tonight.

The state now operates under a $22.4 billion budget for fiscal year 2009. The upcoming fiscal year 2010 budget of $23.1 billion uses about $783 million from the federal stimulus package.

“I highly oppose using over $700 million in (stimulus) funding for ongoing expenses,” said Sen. Brad Lager, a Savannah Republican.

Mr. Lager, who opined in the Senate throughout debate Thursday, joined about a handful of senators who voted “no” on all of the operating budget bills.

The legislature used the federal money to keep higher education budgets, including Missouri Western and Northwest Missouri state universities, K-12 schools, prisons and other line items from experiencing slashes in funding.

“If it weren’t for borrowed money ... we would have actually had to make substantial cuts to our budget,” stimulus opponent Sen. Matt Bartle, R-Lee’s Summit, said. “The operating budget of (K-12) schools is being financed by borrowed money that won’t be there two years from now.”

Western and Northwest not only were shielded from cuts, but received slight budget increases because of the federal stabilization money. The legislature approved $33.7 million for Northwest, up from its current $33.045 million budget. For next year, Northwest received almost $3.65 million in stabilization money, plus $527,319 in the federal funds for a one-time purpose, such as maintenance.

Lawmakers agreed on a $24.5 million budget for Western, a boost from its current $23.6 million budget. The approved budget includes about $2.6 million in stabilization money, plus $847,724 in federal money for a one-time use.

The Senate had intended to pump up the universities with more of the one-time money, but conference negotiations yielded lighter loads.

“They were trying to pull the use of the stabilization down from everyone so they’ll have use for it in next year’s budget,” said Rep. Ed Wildberger, a St. Joseph Democrat on the House budget committee. “I think it’s smart.”

Absent from the budget, however, is a measure sought by House Democrats and endorsed by Senate Republicans to expand Medicaid to an additional 35,000 Missourians.

“I think people are sick and tired of working harder and harder ... knowing their money is going to other people who could be taking care of themselves,” said Rep. Dr. Rob Schaaf, a St. Joseph Republican and member of the House budget committee. Calling it a large windfall for hospitals, he voted against a budget bill that included the proposal on Wednesday.

It didn’t re-emerge Thursday in a new bill version, but Senate President Pro Tem Charlie Shields, R-St. Joseph, said hope still exists for the plan in a non-budget bill the legislature will consider next week.

“This body has long believed that health care for Missourians is a good thing,” said Mr. Shields, who also is a chief marketing/communications officer for Heartland Regional Medical Center. “Anything we can do to bring 700,000 (uninsured) Missourians into health care is a good thing.”

New this year to the state agriculture budget was $55,000 for an additional grain inspector, partially in response to alleged grain fraud at a Gallatin granary.

Also, the recently constructed Chillicothe Correctional Center was budgeted for $15.12 million, slightly up from this year by about $457,000. The women’s prison is set to receive $1.646 million to continue staffing and about $1.26 million to continue substance abuse services.

After considering the state’s operating budget, the legislature approved a controversial federal stimulus bill that used more than $348 million in stabilization money for various construction projects throughout the state.

Northwest Missouri reaped nearly $1 million for the construction of a new chapel and conference/training room space at the Cameron Veterans’ Home. The home also will receive $328,168 to build a new solarium.

Alyson E. Raletz can be reached

at alysonraletz@npgco.com.