Gov. Jay Nixon has frozen $400 million of spending for education, capital improvements and state services because of concerns that lawmakers could override his veto of an income tax bill.

As a result, Salary increases for all faculty and staff at Missouri Western State University have been removed from the university’s budget for the fiscal year starting July 1, university officials announced Friday afternoon.

Nixon announced the spending restrictions while signing a nearly $25 billion operating budget for the 2014 fiscal year that starts Monday.

Earlier this month, the Democratic governor vetoed a Republican-backed bill that would have phased in a tax deduction for business income over the next five years. That bill also would have gradually reduced the income tax rate for individuals and corporations over the next decade.

Lawmakers would need a two-thirds majority vote in both chambers to override Nixon’s veto during a September session.

Nixon says the bill could cost Missouri hundreds of millions of dollars of revenue.

“I can’t express how disappointed I am that this action is necessary,” said Dr. Robert Vartabedian, Missouri Western’s president.

Salary and fringe benefits make up about 71 percent of Missouri Western’s total budget, said Cale Fessler, vice president for financial planning and administration.

“We’ve already cut operating budgets by about 40 percent in recent years, and unfortunately there’s really no place else in the budget we can make up this reduction,” Fessler said. “Our employees deserve a pay raise, and I hope we’re able to give them one this year.”

The restriction reduces Missouri Western’s anticipated state appropriation by approximately $826,000.