Governor Nixon’s proposed budget continues a 3 year trend of spending cuts to balance the budget. A better approach includes more revenue to keep Missouri from falling further behind, build strong schools, create an environment for job growth, and protect vital programs. Click here to learn more about the budget cuts and their impact.

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.

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.

Missouri lawmakers will soon consider a bill that would eliminate more than 105,000 Missouri seniors, veterans, and people with disabilities from a modest tax credit that is critical to keeping them in their homes and would remove millions from local economies throughout the state. To see by senate district the total dollar amount of tax credits received by renters, as well as the number of people qualifying for the credit as renters, click here. 

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.

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".
 
 

Earlier this month, Governor Nixon approved Missouri’s FY 2012 budget, reducing the budget passed by the General Assembly by an additional $172 million. For more information on the budget restrictions made by the Governor, click here.

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.

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.

While many states have successfully used their "rainy day funds" to respond to recent budget shortfalls, flaws in the design of Missouri’s fund have proven to be obstacles to its intended use.  Reforms to the fund would enable it to be better used to respond to future shortfalls.  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. 
 

Many Missourians want to know how the Governor would trim $67 million from Medicaid in FY 2012 without cutting eligibility.  To learn more about the sources of the savings, click here.

The Governor released his FY 2012 budget on January 19th.  Click here to read an overview of his budget recommendations. 

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.

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.

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.
 
 

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.

Governor Nixon asked the General Assembly to cut $520 million from the budget he presented to them in January 2010. They complied with his request. In June, the Governor announced an additional $301 million in withholds (cuts) in order to balance the budget. For a summary of the cuts to human services, click here.

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

Cuts hurt! Balancing the budget by only cutting services means pain for Missouri’s children, parents, seniors – all of us. For the next 20 days, prior to the deadline for Governor Nixon to sign the FY 2011 budget passed by the Missouri legislature, we will look at 20 ways that budget cuts will impact our state, and how a balanced approach provides a better way for Missouri. To learn more, click here.

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 >

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. 

Governor Nixon recently estimated that about $500 mil needs to be cut from the budget he proposed in January.  Click here to read an analysis of how this impact Missouri. 

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. 

Click here to learn more about a special discussion on Missouri’s budget situation, and opportunities to move the state forward, March 11th in Springfield. 

On February 16, 2010 the Missouri House Appropriations Committee for Health, Mental Health and Social Services marked up House Bills 2010 and 2011, the appropriation bills for the Departments of Health & Senior Services, Mental Health and Social Services. Two large amendments were passed that made numerous cuts in services and programs.  Click here to read more about these proposed cuts.

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.

Governor Nixon delivered his State of the State address on January 20. He outlined his priorities and released his proposed budget. Click here to view a summary of the Governor’s budget request.

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.  

On August 20th, the Missouri Office of Administration announced than an additional $60 million is being withheld from the state’s budget.  Click here to learn more about these new cuts. 

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.

Due to budget constraints, Governor Nixon recently announced vetoes and withholdings from the state’s FY2010 budget. Click here for a detailed report.

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