State Revenue

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

Failure to renew the state’s Medicaid provider taxes would not only cost Missouri the funding associated with those taxes and their corresponding federal Medicaid match, but could also put up to $5.7 billion in additional federal dollars from the American Rescue Plan at risk. Read More

At first glance, it seems like Missouri’s state general revenue has fared well through the pandemic. However, much of state revenue growth can be attributed to Missouri’s delayed tax deadline and earlier federal COVID relief that is now expiring. Assessed in the context of these Read More

The health and economic effects of the Coronavirus will require an aggressive state and local policy response to help families make ends meet and avoid disastrous economic consequences. It is critical for Missouri to act in tandem with federal responses in order to cushion the Read More

Tax Changes Leave State Unable to Meet Inflationary Costs Recently announced growth in Missouri’s state general revenue collections may be misleading because the growth is based on a comparison to very weak collections in the prior year. Taking a more comprehensive view shows Read More