The House approved a substitute version of the Senate’s tax cut proposal. While the measure was altered significantly, it was not improved. Click here to learn more about the bill and its impacts on Missouri. 

The MO House today chose ideology over Missouri’s economy and middle class. The expensive and ineffective tax bill it passed will raise taxes for average families and result in severe cuts to services that all Missourians rely on in order to fund big tax cuts for profitable corporations and the wealthy.  To read more of MBP’s statement on the bill’s passage, click here.

Today, the House passed HB 253, a wrong-headed tax cut that would cost the state more than $600 million, resulting in increased class sizes, higher college tuitions, and crumbling roads and bridges.  To read MBP Executive Director Amy Blouin’s statement about the bill’s passage, click here.

In what may become an alternate vehicle to pass damaging tax cuts, the MO House gave preliminary approval to a proposal that would cost the state about $627 million annually when fully phased in.  The proposal would also require substantial cuts to the budget legislators are currently debating. Tax cuts of this magnitude will require severe cuts in services that provide the foundation for economic growth and will undermine the state’s economy.  To read more, click here.

Listen to MBP’s new radio spot on the extreme tax proposal that would undermine Missouri’s economy by taking resources away from the public services that are critical to our state’s economic growth.  MBP launched the ad to increase citizen awareness of the devastating impacts of the bill. 

The MO Senate voted to raise taxes on nearly 105,000 vulnerable Missouri seniors and people with disabilities by eliminating a modest tax credit that is critical to keeping them in their homes.  The action will "continue the devastating trend of tax cuts for big corporations and the very wealthiest at the expense of low-income and working Missourians."  For the full press release, click here.

As the Missouri legislature considers deep cuts in personal income taxes, a national report finds that similar attempts by other states in the past have not fared very well. States that cut personal income taxes were just as likely to grow at rates below national averages in later years as to do better.... Read more >

The extreme tax cut perfected by the MO Senate this week would slash Missouri revenue by $960 million, resulting in devastating cuts throughout the state.  Instead of spurring the economy, the proposal would severely undermine Missouri’s competitiveness by damaging our ability to invest in the very services that make Missouri attractive to families and business.  To learn more about the tax cuts and their impacts, read the MBP analysis.

"The nearly $700 million in tax cuts passed by the Senate tonight will undermine Missouri’s economic growth," said Missouri Budget Project Executive Director Amy Blouin in a press statement.  "Instead of trying to match Kansas’ shortsighted tax cuts that resulted in a $700 million shortfall, Missouri should invest in what Missouri needs to improve its own quality of life."

An extreme tax cut proposal approved by a Senate Committee this week would slash MO’s general revenue by more than one-fifth, resulting in devastating cuts to services throughout the state and undermining Missouri’s ability to invest in the very services that make it attractive to business. MBP’s latest report outlines the bill and its impact on services and the economy.

The tax cuts passed today by the Senate Ways & Means Committee will slash the state’s general revenue budget by nearly one-fourth, resulting in devastating cuts to services throughout the state. Instead of spurring the economy, the proposal will severely undermine MO’s ability to invest in the very services that make Missouri attractive to business.  Read the MBP’s full statement here.

Missouri has the opportunity to reduce its uninsured by one-fourth and provide health care coverage to about 267,000 Missourians while actually increasing state general revenue available to fund a variety of other services.  To learn more about the cost savings involved in expansion, read our newest report.

The Missouri Budget Project testified against SJR 2 in the Senate Ways and Means Committee.  In its full testimony, MBP stated that the measure would force permanent cuts to education, public safety, health care, and other key services that support Missouri’s economy and quality of life. 

The provision included in the Governor’s budget proposal to eliminate the circuit breaker property tax credit for renters would make it more difficult for more than 104,000 low income Missouri seniors and people living with disabilities to stay in their homes by increasing the property taxes they pay through rental rates, adding to the already substantial share of income that low income Missourians must pay in property tax.  Read the full report ... Read more >

As more and more shopping has moved online, tax laws have put "bricks and mortar" retailers at a competitive disadvantage. Fortunately, MO lawmakers have the opportunity to enact the Marketplace Fairness Act and take steps towards leveling the playing field for retailers.  To learn more about how the Marketplace Fairness Act works at both the state and federal levels, click here.

According to a new report by the Institute on Taxation and Economic Policy, Missouri takes a much larger share of income from low- and middle-income families than it does from the wealthiest.  To see a summary of Missouri’s standing, click here.  For the full report, click here.

While some policymakers advocate cutting Missouri’s corporate income tax as a way to revitalize the state’s still struggling economy, such a move would have little-to-no impact on business expansion or hiring, and is likely to backfire by reducing resources for schools, transportation, and other things that businesses cite as bigger concerns.  For more information on why corporate income taxes don’t spur growth and could even impede it, click here.

With significant infrastructure needs and extraordinarily low borrowing costs, it may be time for MIssouri to consider new bonding proposals.  However, to protect ongoing investments including education, public safety, and social services, lawmakers should also approve a new continuing source of revenue in order to repay the bonds.  Learn more about how bonding could maximize Missouri’s investments here.

Although the state is bringing in more money lately for schools, roads, and other services, it remains far from recovering lost ground. It will take 15 more years to return to the level of purchasing power the state had before the recession. To learn more about the status of general revenue, click here.

Missouri general revenue collections for fiscal year 2013 grew by 2.8 percent in August. However, corporate income and individual income tax have had slight declines compared to the previous year. Missouri revenue remains well below the level achieved prior to the recession. Read more here.

State lawmakers will be returning to the Capitol for their annual “veto session” next week. Among the important issues they will consider is the Governor’s veto of House Bill 1329. The measure clarified existing sales tax law as it applies to vehicle sales. If the veto of House Bill 1329 is sustained during the session next week, localities across Missouri will lose nearly $31 million in local tax revenue... Read more >

The Missouri Department of Transportation faces a steep decline in revenue at the same time that need is increasing dramatically. While there are no easy solutions to this crisis, the Missouri Budget Project evaluates potential solutions in this new report.

Missouri net general revenue collections grew 3.2 percent for FY 2012. However, the state continues to face budget challenges, as total GR collections remain lower than those collected in FY 2008, and the growth rate is lower than in FY 2011.  To learn more about the strengths and weaknesses in Missouri’s general revenue collections, click here.

The state has ended the fiscal year with 3.2 percent net growth and collections outpacing projections, but falling short of the growth rate seen in FY 2011.  However, the net general revenue total remains far below collections attained in FY 2008. To learn more about year end collections, click here.

Although the FY13 budget is technically balanced, it relies on budgeting maneuvers and optimistic assumptions. As a result, Missouri’s FY 2013 budget may not truly be fully funded, which may necessitate $150 – $200 million in mid-year budget reductions.  For more on the assumptions and their impacts, click here.

The budget may have passed through the legislature, but there is still time for policymakers to enact balanced solutions that include new revenue, protecting the services that all Missourians rely on and improving our economy both now and in the future. To read MBP’s full statement on the budget, click here.

Missouri General Revenue collections increased by 2.5 percent during the first nine months of the fiscal year. However, even with recent growth trends, revenue will remain more than $700 million below fiscal year 2008 levels. Read more here.

Earlier this year, the Missouri House approved a measure that, if approved by the Senate and voter,s would create one of the strictest appropriations lids in the nation.  If the lid had been enacted in 1992, Missouri would have hit the cap in nearly every year from FY 1993 to FY 2012.  Changes made in the House simply delay the inevitable crisis that has been proven to result under TABOR.  To read the full analysis, click here.

The streamlined sales and use tax agreement would level the playing field for MO businesses and allow the state to collect taxes owed on online purchases.  However, a recently passed House committee substitute now includes language that would create inherent long-term policy consequences.  To learn more, click here.

A new analysis indicates that Missouri’s budget woes are worse than in previous recessions, and that the state will not recover soon. Not only will Missouri continue to experience annual budget shortfalls, but it will not achieve pre-recession purchasing power until FY 2029. To read more, click here.

Recent state general revenue trends raise concern about the state’s to meet revenue projections for the current year. Moreover, the dynamics of revenue growth call into question two unusual components of the Executive Budget Proposal.  To learn more about why conservative budgeting techniques may be required for FY 2013, click here.

Despite the generally improving economy, Missouri net general revenue collection growth remains sluggish. Collections must grow considerably over the next six months to avoid mid-year budget cuts. To learn more about quarterly trends, click here.

The state of Missouri will face a budget shortfall nearing $800 million in fiscal year 2013, making it more difficult than ever for the state to make vital investments to create jobs and boost our economy, according to a new analysis by the Missouri Budget Project. The shortfall is more than $300 million more than previous estimates by the state.  To read the full analysis, click here.  To read the MBP press release, click here.

Despite falling 1.5 percent in September, net General Revenue collections increased 1.9 percent for the quarter ending in September. However, the state still faces a major budget shortfall in FY 2013. The revenue declines seen in FYs 2009 and 2010 were the largest sustained decline since the Great Depression, and FY 2011 GR collections were below those of FY 2006. To learn more about first quarter revenue, click here.

Four new initiative petitions have been filed that would place before voters a constitutional amendment to greatly expand the sales tax and eliminate the personal income tax. If passed, the new tax structure would result in general revenue shortfalls of at least $2.5 billion – about 1/3 of the general revenue total.  The MBP fact sheet provides more details on the proposals and the impact on the state’s general revenue and services.

The tax credit package to be debated at a special session in September includes a $52 million cut to the Circuit Breaker Property tax credit program, which enables seniors and those living with a disability to remain in their homes. If passed, the measure would impact more than 100,000 Missouri seniors and people living with a disability. To learn more, click here.

Two new mega tax petitions filed with the Secretary of State propose a constitutional amendment to eliminate personal income taxes and replace them with a greatly expanded sales tax that applies to most goods and some services, even those currently exempt. As a result of the proposed tax structure, the state would face a general revenue shortfall of at least $2.4 billion. To learn more, click here.

One of the objectives of Missouri’s expected Special Legislative Session to be held this September is consideration of the "Aerotropolis" tax credit program. The program would spend $360 million over ten years to promote an international trade zone surrounding Lambert-St. Louis International Airport. However, mounting evidence casts serious doubt on the program’s prospects for success. Click here to read our new analysis of "Aerotropolis".
 
 

After falling by 6.9% in FY 2009, and another 9.1% in FY 2010, Missouri’s net General Revenue collections increased 5.9% in FY 2011. Moreover, the net GR total exceeded the consensus revenue estimate by $159.2 million, providing the state with much needed revenue in the aftermath of multiple natural disasters.... Read more >

A significant portion of the FY 2012 budget restrictions imposed by Governor Nixon are attributable to costs resulting from the multiple natural disasters that have plagued Missouri this spring. While there appears to be bipartisan interest in tapping into a portion of the state’s Rainy Day Fund, in the past lawmakers have been reluctant to utilize the funding due to several barriers in the fund’s design. To learn more, click here.

For the most recent quarter of the fiscal year, general revenues increased 10.9 percent, marking the fourth consecutive quarter of revenue growth. This sustained revenue growth indicates that the worst of the revenue decline is over. However, the state continues to face enormous revenue problems, demonstrated by the fact that collections for the quarter were below those of the same quarter of FY 2006. To read more, click here.

Proponents of proposals to replace the state’s income tax with a greatly expanded sales tax assert that doing so will increase economic growth.  An analysis of the data shows that there is no relationship between state income tax and state economic growth.  To learn more, click here.

Advocates of the effort to eliminate Missouri’s income taxes and replace them with a greatly expanded sales tax often attempt to correlate the income tax with population growth. A review of population growth over times shows only a continuation of U.S. migration patterns, and no correlation with state income taxes.  To read more, click here.

In the last year, Missourians spent approximately $2.8 billion on e-commerce.  However, the state’s sales tax hasn’t kept up with the changing economy. In 2012, Missouri is estimated to lose $210 million in state and local revenue. Missouri policymakers can ameliorate this problem by enacting the Streamlined Sales Tax collections mechanism.  To learn more, click here. 

There are currently nine initiative petitions and two legislative proposals to place a constitutional amendment before voters in November 2012 that would eliminate personal and corporate income taxes and replace them with a greatly expanded sales tax.  Learn about the mega sales tax and why it is unwise policy by clicking here.

Missouri General Revenue collections increased 15.9% in the month of January, and net GR collections are up 6.3% for FY 2011.  If revenue continues to show improvement, the current fiscal year should be safe from any additional budget reductions.  However, the budget for FY 2012 continues to face significant reductions.  To learn more, click here.

The federal tax law signed in December allows businesses to utlize accelerated investment expensing.  As a result, Missouri will lose as much as $143 million in state corporate tax revenue from 2011-2012.  Missouri can prevent this loss by enacting a provision in its own tax code, as was done in 2002 with bipartisan support.  To learn more, click here. 
 

Missouri’s net General Revenue collections increased by 9.4 percent in December and are up 4.6 percent for all of FY 2011.  However, by any historical standard, the Missouri revenue situation remains in the doldrums.  To learn more, click here.

Recent reports have highlighted both improvements in Missouri’s General Revenue for the current fiscal year and less dire forecasts for shortfalls in fiscal year 2012.  While improvements in the state’s fiscal condition are welcome, it is important to understand them relative to the magnitude of revenue decline over the past three years.  Click here to learn more.

Missouri General Revenue collections (net of refunds) increased 9.4 percent in the month of December.  Should growth continue at this level, the state should be able to avoid additional budget cuts during FY 2011.  However, even with this growth, the state budget for FY 2012 is in a very difficult position.  Click here to learn more. 

According to reports, initial paperwork will be filed on January 7th to circulate a ballot measure proposal to eliminate the state’s income tax and replace it with a greatly expanded sales tax.  Missourians know that if it sounds to good to be true, it probably is.  Click here to learn more. 

Governor Nixon appointed the Tax Credit Review Commission to review the state’s tax credits and make recommendations "for greater efficacy and enhanced return on investment."  The Commission discussed several global issues and took a detailed look at each of the individual 61 tax credits, which were worth more than $500 million in both 2009 and 2010.  Click here to learn more about the highlights of the Commission’s recommendations.

Missouri General Revenue collections (net of refunds) increased 3.3 percent in November, and net GR collections are up 3.5 percent for FY 2011 overall.  However, even with this revenue growth, budget reductions of approximately $800 million are likely for FY 2012.  Click here to learn more.

An issue likely to be debated in the 2011 Missouri Legislative session is the proposal to replace state income tax — both individual and corporate — with a greatly expanded sales tax.  Proponents of the legislation refer to it as the "fair tax," but Missourians should think twice because it is anything but.  Click here to learn more.

With so much conflicting information in the news about Missouri’s revenue crisis, it’s difficult to get to the facts. The MBP’s latest fact sheet on Missouri’s revenue crisis lays out the facts about Missouri’s revenue in an easy to understand brief. Click here to see more.  
 
 

Click here to view the MBP’s most recent presentation on the ongoing crisis facing Missouri’s general revenue budget.
 
 

Like most states, Missouri experienced significantly high levels of unemployment during the recession, causing the state’s Unemployment Trust Fund to be depleted. As a result, Missouri and 30 other states turned to the Federal Unemployment Trust Fund to make ends meet. As of August 27th, Missouri has borrowed more than $722 million from the Federal Fund to finance benefits for unemployed Missourians. The amount of this debt is projected to increase to as much as $1.8 billion by 2013.
 ... Read more >

Updated In November Missourians will vote on Proposition A. If passed, the Proposition would undermine local control and decision making in every Missouri community. Proposition A would place vital local services and infrastructure perpetually at risk of severe cuts. And, the measure could likely result in St. Louis tripling its general revenue sales tax rate, Kansas City doubling its sales tax rate, or property tax increases of 400 percent. ... Read more >

Missouri recently won the race to the bottom, as South Carolina raised its cigarette taxes.  At 17 cents per pack, Missouri’s tobacco taxes not only lag far below the national average, but also far below the cigarette taxes of its neighbors.  Click here ... Read more >

Missouri’s general revenue ended the fiscal year more than 9 percent below the previous year, likely the largest decline in one year since the Great Depression. Click here to read more details.
 

Despite significant reductions to Missouri’s general revenue budget over the last two years, Missouri’s funding crisis continues. Over the last decade, Missouri’s revenue has dropped to historic lows. Missouri policymakers have responded by depending upon a series of temporary funding and by making severe cuts to an array of state services. The crisis is not over. MBP estimates the state will face a $1 billion shortfall in FY 2012. Click here to read more. 
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Cut hurt!  For the past 20 days the Missouri Budget Project has highlighted 20 ways that budget cuts hurt individuals, families, communities and all of us. Click here to read 20 Ways in 20 Days. There is a better way!  Instead of just relying on cuts, Missouri needs to use common sense balanced solutions for its budget.  Click here  to read a summary of some of the better ways Missouri could choose.

This updated presentation provides an overview of the state of Missouri’s budget and options for strengthening the resources available for investing in the services and infrastructure that benefit all Missourians. June 2010

Missouri’s net general revenue collections declined by 3.6 percent in April, resulting in a net decrease of 11.7 percent for all of Fiscal Year 2010 to date.  Click here to read the April general revenue report. 

Missouri families living below the poverty level in 2009 faced a substantial state income tax liability, according to a report released today by the Center on Budget and Policy Priorities.  Click here to learn more. 

Governor Nixon’s tax credit reform proposal was introduced last week on the Missouri Senate floor in the form of an amendment to Senator Dempsey’s economic development bill, Senate Bill 895. The House version of this proposal, House Bill 2399, was heard in the House Jobs and Economic Development Committee on April 6th. Click here... Read more >

Proponents of the proposal to eliminate Missouri’s current state general revenue structure and replace it with a greatly expanded sales tax often compare their plan to states that do not have an individual income tax. However:
1.    No state currently relies entirely on sales tax to fund its entire state budget; and
2.    No state currently taxes services as broadly as Missouri would under the proposal.
Click here... Read more >

Missouri’s general revenue collections, after refunds, fell by 14.6 percent in February, resulting in a 12.7 percent decline for the first eight months of fiscal year 2010 overall. Click here to read the full report.

This presentation provides an overview of the state of Missouri’s budget and the structural causes of the state’s budget struggles. 

A substitute version of Senate Joint Resolution (SJR) 29 was recently unveiled in the Missouri Senate. The substitute bill makes a number of changes including exempting a handful of services and purchases from the sales tax. Click here to learn more about how those changes would actually increase the financial burden on Missouri families and our state’s economy.

Several constitutional amendments that propose to eliminate personal and corporate income taxes and replace them with a greatly expanded sales tax have been introduced this year in the Missouri Legislature.  Click here to read a policy brief on these proposals.  Click here to read a fact sheet on how this would impact Missouri families and here to learn how it will impact seniors.  Click here... Read more >

Enacting the streamlined sales tax will help keep Missouri businesses competitive, provide the state with much-need funds and modernize our revenue structure.  Click here to learn more about this proposal. 

Senate Joint Resolution 29 and House Joint Resolution 56 would place a constitutional amendment on the ballot to dramatically change the state’s revenue structure by eliminating individual  and corporate income/franchise taxes and replacing them with a greatly expanded sales tax. The new statewide sales tax would both increase the current sales tax rate and expand the base of the state sales tax to include all purchases and services. Click here... Read more >

House Joint Resolution (HJR) 77 currently being debated in the Missouri Legislature would allow Missouri to increase bonds for much needed capital improvement projects by $800 million. However, the issue must be evaluated in the overall context of the Missouri state budget situation. Click here to read more.

Missouri general revenue collections, after refunds, declined 21.7 percent in December, which results in a 10.6 percent decline for the first six months of fiscal year 2010 overall.  Click here to read the latest general revenue report for fiscal year 2010.

Poor families in Missouri continue to face substantial state income tax liability, according to a new report by the Center on Budget and Policy Priorities.  Click here to read a news release about the report.

Click here to read a summary of the budget restrictions announced by the Governor on October 28, 2009.

State Revenue dropped drastically in the first quarter of the fiscal year. Without the American Recovery and Reinvestment Act funding Missouri would be facing a major budget crisis in the current year. Revenue drop calls for further Federal Stimulus funds for the State in order to avoid major budget problems in the next year. Click Here to read more.  

Click here to learn more about where Missouri ranks in revenue collections and spending on state residents compared with other states.

Missouri’s revenue collections declined sharply in Fiscal Year 2009. Click here to read a detailed report of this decline in state revenue and what it could mean for the current fiscal year.

Click here to read an analysis of how the 2009 proposal would impact Missouri families. 
Click here to read a fact sheet on this issue.

Click here to read a fact sheet on the ramifications of the 2009 TABOR bill. 

Click here to learn more about why Missouri should pass a streamlined sales tax.
Click here for imformation on the benefits of Missouri decoupling from Federal Bonus Depreciation.

Click here to learn more about how a State Earned Income Tax Credit (EITC) could help support Missouri’s families and economy.

Click here to learn more about how fully funding state services can help Missouri’s economy recover.