Missouri, Illinois Tax Revenues Lower than Predicted
Springfield, IL & Jefferson City, MO – Missouri collected 2.7% less tax money this July, August, and September than it did during those three months last year.
Budget Director Linda Luebbering says state revenue was $76 million short of what lawmakers budgeted for the first three months of the fiscal year. But Luebbering says she wants to study the outlook more before recommending any more budget cuts to Governor Holden.
Earlier this week, Illinois also reported lower than expected revenue, suggesting a budget crisis may await the next Governor.
Dan Long of the Legislature's Illinois Economic and Fiscal Commission said bills from health care providers and other government vendors are growing while revenues this year may come in $200 million short of projections by Governor George Ryan's administration. The result could be a deficit of as much as $500 million for a budget of $53 billion.
Long added the shortfall could get much larger as the state repays $1 billion it borrowed to ease cash flow problems.
Governor Ryan has scheduled meetings today with state leaders to discuss the looming budget crisis.
Both major candidates to replace Ryan, Democrat Rod Blagojevich and Republican Jim Ryan, have said they can address the problem without income or sales tax hikes or another round of painful service cuts.