This week the Missouri Office of Administration released the details of the state’s general revenue tax collections in February and for the fiscal year from July 1 through February. As of the end of February, the amount of revenue for the year to date has grown by 4.9 percent compared to last year. The numbers point to Missouri being on track to meet the revised Consensus Revenue Estimate of 4.6 percent growth compared to last year, or general revenue of $8.371 billion.
However, even if revenue continues to stay on track to meet the revised revenue estimate, the amount will not be sufficient to cover the budget that was approved by lawmakers and the Governor last summer of $8.699 billion. To meet that spending level, general revenue would need to grow by 9.8 percent for the year compared to last year. As a result, the spending restrictions that the Governor put in place are likely to continue through the remainder of the year.
The revenue situation also means that as Missouri lawmakers consider the fiscal year 2016 budget, which will begin on July 1st, they will start with a hole. Lawmakers will first need to compensate for last year’s unmet services before adding to the budget.
|Missouri General Revenue Fiscal Year 2015
As of February, 2015
Amounts in millions
|Fiscal Year 2014 year to date||Fiscal Year 2015 year to date||Percent Change
|Individual Income Tax||$3,804.6||$4,046.1||6.35%|
|Corporate Income Tax||$286.7||$298.0||3.94%|
|Subtotal Gross GR||$5,627.2||$5,909.7||5.02|
And yet, Missouri is still better off than Kansas, where the tax cuts that were passed several years ago continue to reduce the amount of state revenue that is available for critical public services. The revenue in Kansas is so dire that lawmakers are considering eliminating the Parents as Teachers early parent education program. This may be a sign of what Missouri has to look forward to when the tax cuts passed in 2014 are implemented beginning in 2017 in Missouri.
|Kansas General Revenue Fiscal Year 2015
As of February, 2015
Amounts in Millions
|Fiscal Year 2014 year to date||Fiscal Year 2015 year to date||Percent Change|
|Individual Income Tax||$1,534.0||$1,420.1||(-7.4)|
|Corporate Income Tax||$198.3||$224.7||13.3|
|Net GR Taxes||$3,707.6||$3,637.9||(-1.9)|