Despite the release of many gubernatorial budget restrictions, weak state general revenue collections continue to require reduced funding in the current year. However, Missouri’s current budget challenges are just the beginning of a massive, self-imposed fiscal cliff brought on by tax cuts approved by lawmakers this year.
Once the tax cuts are fully implemented, Missouri will face a $1.95 billion shortfall in the revenue needed to simply maintain funding for services included in last year’s budget and fully fund the K-12 school funding formula.
Under the tax cuts, Missouri will likely never be able to meet the needs of its residents and restore services to pre-recession levels. Further, Missouri will likely struggle to provide adequate funding to meet the K-12 funding formula requirements. The lack of revenue needed to deliver quality education, health, infrastructure, and other critical services will compromise its ability to compete for and maintain quality jobs and slow the state’s economic growth.
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