State Revenue

Lawmakers are considering swapping out the income tax for a greatly expanded sales tax. The proposal would blow a $5 billion hole in the state budget, causing massive cuts to schools, particularly in rural areas.1 If resulting cuts are equally distributed across the budget, state Read More

Updated February 2026View previous version here Governor Kehoe recently announced that Missouri expects a $2 billion general revenue shortfall for fiscal year 2027 (the state budget year that begins July 1st). This shortfall is mostly the result of previously enacted state tax Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

A number of tax changes made over the last decade have resulted in an inadequate, upside-down tax system that shifts the costs to hardworking Missouri families while the wealthy and out-of-state corporations pay less than their fair share for public services, depriving our state Read More

In February 2023, sales of recreational marijuana became legal in Missouri following voter approval of a state constitutional amendment that legalized marijuana for Missouri residents over age 21. This amendment included a six percent state sales tax on recreational marijuana. Read More

Contrary to the extraordinary growth of general revenue in recent years, state revenue is stagnating, which will result in difficult budget decisions in future years. The fluctuations in state revenue are a result of overlapping factors. Specifically, federal COVID funding has Read More

Medicaid provider taxes (commonly referred to as the Federal Reimbursement Allowance, or FRA) are a critical funding stream supporting the entire state budget. While dollars raised through the FRA directly support the MO HealthNet program, the funding frees up state general Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

Missouri ended calendar year 2021 with $11.2 billion in the bank – an extraordinary amount. Although much of the balance is federal funding or earmarked state funds, $2.8 billion of the total was state general revenue. By comparison, that amount was nearly six times the Read More