Missouri revenues dropped 9.1% in FY 2010
By Marshall Griffin, St. Louis Public Radio
Jefferson City, Mo. – State revenues in Missouri dropped by 9.1 percent during the fiscal year that just ended, making it one of the worst in recent memory.
When Fiscal Year 2010 ended on Wednesday, the state of Missouri had collected $6.77 billion in taxes, compared to $7.45 billion the year before. Linda Luebbering is Budget Director for Govenor Jay Nixon.
"That would have been challenging enough, but the previous fiscal year (there) was a decline of 6.9 percent from the year before that," Luebbering said. "We have had two years (of) back-to-back negative revenue, which is just unheard of."
The drop in revenue forced Governor Nixon to cut the budget several times during the course of the year. Luebbering doesn't expect that to happen again this year.
"The reductions that the governor made back in June should be about where we need to be to keep this budget balanced, so we'll obviously monitor it regularly," Luebbering said.
Revenue is expected to grow this year, albeit at very low levels.
The good news: Collections of both sales and withholding taxes increased during the last three months. And corporate income and franchise tax collections rose by nearly 14 percent last month.
But Luebbering says Fiscal Year 2012, which starts one year from now, could be worse than FY 2010, because Missouri is set to lose nearly $900 million in federal stabilization funds.