Slow state revenues could mean budget cuts
JEFFERSON CITY, Mo. – Lagging state tax revenues have Missouri’s budget director concerned about the budget.
Figures published by Luebbering’s office Friday show the state’s overall collections grew by 2.5 percent in November compared to November 2010. For the year, revenue growth is 2 percent.
That revenue growth lags behind the 3 percent estimated by the Governor and legislature when they drew up the current budget. Lueberring said that one percent difference represents a $72 million shortfall for the state.
Luebbering said Friday if collections don’t pick up, legislators are going to have to make cuts in the current fiscal year’s spending. And Fiscal Year 2013’s state budget will only continue the trend of austere state spending plans of the last five or so years.
“We’re going to have to make some pretty speedy recovery,” Luebbering said.
Currently corporate income and franchise taxes are running nearly 11 percent behind what they were at this time last year, and Luebbering says the franchise tax cut okayed by the state legislature last session will kick in during the last quarter of the fiscal year. She said a recent change in the federal tax code is allowing businesses more write offs than before, and she thinks most businesses are taking advantage of those loopholes.
“We need to be ahead of the game pretty soon here, and we’re not right now,” the budget director said.
Luebbering said her staff and House and Senate appropriations staffers will work to revise budget figures through the month of December. Speaking to reporters at the State Capitol Friday, Gov. Jay Nixon was non-committal about his take on the state’s revenue collections.
“I think everybody knows that the budgets will continue to be challenging,” the governor said.
Despite the gloomy November collection figures, Luebbering sounded a more upbeat note when talking about future state growth. She said income tax collection figures continue to be “consistent” and it looks like state sales tax collections are running about three percent ahead of last fiscal year.
“Perhaps there’s some signs that in the next fiscal year…we’ll see some turnaround,” she said.
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- State Revenues Continue to Climb, Budget Chief Still Cautious
- Governor Announces More Budget Cuts
- School Bus Funds Cut $12 Million This Year, No More Cuts Likely Says Budget Director
- Governor Outlines Budget Cuts
Posted by Dick Aldrich on December 3, 2011. Filed under Budget and Taxes.
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