Missouri Gov. Jay Nixon rolled out a budget Tuesday night that would cut higher education funding by more than $100 million while increasing state aid for K-12 education.

In his fourth State of the State address, and his final one before he stands for re-election, Nixon laid out an agenda that cuts $508 million from the state's budget, including reducing the state payroll by 816 jobs - to the lowest level in 15 years.

All this, he said, would help balance the state's finances without increasing taxes.

"Other states have not shown that fiscal discipline," Nixon said. "More than 30 states have raised taxes, including Kansas and Illinois. But we have not. Because we know that Missouri families can't afford a tax increase. Period."

Although higher education takes a hit, Nixon proposes increasing funding for K-12 schools by $5 million. However, the total amount is still nearly $500 million less than what is called for by the state's school funding formula.