Despite the generally improving economy, Missouri net general revenue collection growth remains sluggish. Collections must grow considerably over the next six months to avoid mid-year budget cuts. To learn more about quarterly trends, click here.

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.

Despite falling 1.5 percent in September, net General Revenue collections increased 1.9 percent for the quarter ending in September. However, the state still faces a major budget shortfall in FY 2013. The revenue declines seen in FYs 2009 and 2010 were the largest sustained decline since the Great Depression, and FY 2011 GR collections were below those of FY 2006. To learn more about first quarter revenue, 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.

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.

Two new mega tax petitions filed with the Secretary of State propose a constitutional amendment to eliminate personal income taxes and replace them with a greatly expanded sales tax that applies to most goods and some services, even those currently exempt. As a result of the proposed tax structure, the state would face a general revenue shortfall of at least $2.4 billion. 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".
 
 

After falling by 6.9% in FY 2009, and another 9.1% in FY 2010, Missouri’s net General Revenue collections increased 5.9% in FY 2011. Moreover, the net GR total exceeded the consensus revenue estimate by $159.2 million, providing the state with much needed revenue in the aftermath of multiple natural disasters.... Read more >

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.

For the most recent quarter of the fiscal year, general revenues increased 10.9 percent, marking the fourth consecutive quarter of revenue growth. This sustained revenue growth indicates that the worst of the revenue decline is over. However, the state continues to face enormous revenue problems, demonstrated by the fact that collections for the quarter were below those of the same quarter of FY 2006. To read more, click here.

Proponents of proposals to replace the state’s income tax with a greatly expanded sales tax assert that doing so will increase economic growth.  An analysis of the data shows that there is no relationship between state income tax and state economic growth.  To learn more, click here.

Advocates of the effort to eliminate Missouri’s income taxes and replace them with a greatly expanded sales tax often attempt to correlate the income tax with population growth. A review of population growth over times shows only a continuation of U.S. migration patterns, and no correlation with state income taxes.  To read more, click here.

In the last year, Missourians spent approximately $2.8 billion on e-commerce.  However, the state’s sales tax hasn’t kept up with the changing economy. In 2012, Missouri is estimated to lose $210 million in state and local revenue. Missouri policymakers can ameliorate this problem by enacting the Streamlined Sales Tax collections mechanism.  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.

Missouri General Revenue collections increased 15.9% in the month of January, and net GR collections are up 6.3% for FY 2011.  If revenue continues to show improvement, the current fiscal year should be safe from any additional budget reductions.  However, the budget for FY 2012 continues to face significant reductions.  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. 
 

Missouri’s net General Revenue collections increased by 9.4 percent in December and are up 4.6 percent for all of FY 2011.  However, by any historical standard, the Missouri revenue situation remains in the doldrums.  To learn more, click here.

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.

Missouri General Revenue collections (net of refunds) increased 9.4 percent in the month of December.  Should growth continue at this level, the state should be able to avoid additional budget cuts during FY 2011.  However, even with this growth, the state budget for FY 2012 is in a very difficult position.  Click here to learn more. 

According to reports, initial paperwork will be filed on January 7th to circulate a ballot measure proposal to eliminate the state’s income tax and replace it with a greatly expanded sales tax.  Missourians know that if it sounds to good to be true, it probably is.  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.

Missouri General Revenue collections (net of refunds) increased 3.3 percent in November, and net GR collections are up 3.5 percent for FY 2011 overall.  However, even with this revenue growth, budget reductions of approximately $800 million are likely for FY 2012.  Click here to learn more.

An issue likely to be debated in the 2011 Missouri Legislative session is the proposal to replace state income tax — both individual and corporate — with a greatly expanded sales tax.  Proponents of the legislation refer to it as the "fair tax," but Missourians should think twice because it is anything but.  Click here to learn more.

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.
 
 

Like most states, Missouri experienced significantly high levels of unemployment during the recession, causing the state’s Unemployment Trust Fund to be depleted. As a result, Missouri and 30 other states turned to the Federal Unemployment Trust Fund to make ends meet. As of August 27th, Missouri has borrowed more than $722 million from the Federal Fund to finance benefits for unemployed Missourians. The amount of this debt is projected to increase to as much as $1.8 billion by 2013.
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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.

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

Missouri’s net general revenue collections declined by 3.6 percent in April, resulting in a net decrease of 11.7 percent for all of Fiscal Year 2010 to date.  Click here to read the April general revenue report. 

Missouri families living below the poverty level in 2009 faced a substantial state income tax liability, according to a report released today by the Center on Budget and Policy Priorities.  Click here to learn more. 

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 >

Proponents of the proposal to eliminate Missouri’s current state general revenue structure and replace it with a greatly expanded sales tax often compare their plan to states that do not have an individual income tax. However:
1.    No state currently relies entirely on sales tax to fund its entire state budget; and
2.    No state currently taxes services as broadly as Missouri would under the proposal.
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. 

A substitute version of Senate Joint Resolution (SJR) 29 was recently unveiled in the Missouri Senate. The substitute bill makes a number of changes including exempting a handful of services and purchases from the sales tax. Click here to learn more about how those changes would actually increase the financial burden on Missouri families and our state’s economy.

Several constitutional amendments that propose to eliminate personal and corporate income taxes and replace them with a greatly expanded sales tax have been introduced this year in the Missouri Legislature.  Click here to read a policy brief on these proposals.  Click here to read a fact sheet on how this would impact Missouri families and here to learn how it will impact seniors.  Click here... Read more >

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. 

Senate Joint Resolution 29 and House Joint Resolution 56 would place a constitutional amendment on the ballot to dramatically change the state’s revenue structure by eliminating individual  and corporate income/franchise taxes and replacing them with a greatly expanded sales tax. The new statewide sales tax would both increase the current sales tax rate and expand the base of the state sales tax to include all purchases and services. Click here... Read more >

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.

Missouri general revenue collections, after refunds, declined 21.7 percent in December, which results in a 10.6 percent decline for the first six months of fiscal year 2010 overall.  Click here to read the latest general revenue report for fiscal year 2010.

Poor families in Missouri continue to face substantial state income tax liability, according to a new report by the Center on Budget and Policy Priorities.  Click here to read a news release about the report.

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.  

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.

Click here to read an analysis of how the 2009 proposal would impact Missouri families. 
Click here to read a fact sheet on this issue.

Click here to read a fact sheet on the ramifications of the 2009 TABOR bill. 

Click here to learn more about why Missouri should pass a streamlined sales tax.
Click here for imformation on the benefits of Missouri decoupling from Federal Bonus Depreciation.

Click here to learn more about how a State Earned Income Tax Credit (EITC) could help support Missouri’s families and economy.

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