Missouri’s economy is expected to grow next year, according to the annual revenue estimate released Tuesday by the Governor’s office and key legislative leaders.
Democratic Governor Jay Nixon, along with GOP Budget chairs Rick Stream from the House and Kurt Schaefer from the Senate, say that the state’s economy will grow by just over 3 percent during the next fiscal year. The economic growth rate is actually estimated to be 4.8 percent – but the loss of one-time revenue sources from Washington and other factors lower it to the 3 percent net rate.
Governor Jay Nixon (D) has decided to let state employees take the day after Thanksgiving off work this year.
The state’s latest general revenue report show that Missouri collected 7.5 percent more money last month than it did in October of last year, and State Budget Director Linda Luebbering says that’s part of the reason why state workers will get to stay home on November 23rd.
Missouri closed out its 2012 fiscal year with slightly better-than-expected revenues. But that doesn't necessarily translate to a budget surplus.
Figures released Tuesday show Missouri had more than $7.3 billion in general revenues during the fiscal year that ended June 30. That's up more than 3.2 percent compared with the 2011 fiscal year. And it's also better than the 2.7 percent growth rate upon which the budget had been based.
Missouri’s revenues rose more than expected during the month of May.
The state collected about $6.6 billion in revenue last month, compared to just under $6.4 billion in May of 2011. Governor Jay Nixon’s Budget Director, Linda Luebbering, credits most of the improvement to higher collections of state income and sales taxes.
“That's the good news, things are picking up," Luebbering said. "I think we do have to be cautious, still, because of what’s going on at the national and particularly the international picture, with European Union issues and everything that's going on globally that could have some bearing on the overall economy.”
The state Office of Administration released figures on Wednesday that show Missouri's net revenues were up 3.1 percent through April - or the first 10 months of the fiscal year. The 2012 budget is based on 2.7 percent growth.