Missouri revenues down in July
Friday, August 2, 2013
By CHRIS BLANK
JEFFERSON CITY, Mo. (AP) — Missouri started the 2014 budget with a dip in revenues that the budget director said Friday could be pegged to receipt last year of the state’s share from the national mortgage settlement.
Figures reported by the Office of Administration show state revenues were down 4.8 percent in July compared to one year ago.
The state’s 2014 fiscal year started July 1, and the budget is based on an expected 3.1 percent growth rate.
In July, sales and use tax collections were up 4 percent and corporate income and franchise taxes were up 10.4 percent. Individual income taxes were up 0.2 percent and brought in nearly $342 million.
Gov. Jay Nixon announced in late June that he was freezing $400 million in spending for education, building repairs and state services because of concerns state lawmakers could override his veto of a tax-cutting measure. The Republican-backed bill would phase in a tax deduction for business income over five years and gradually reduce the income tax rate for individuals and corporations over the next decade.
Lawmakers return to the state Capitol in September to consider whether to override Nixon’s vetoes.
Luebbering said the revenue figures do not affect the freezes enacted by the governor.
“He was pretty clear. The main reason for the expenditure restrictions was tied to (the tax legislation),” she said. “Obviously, we are going to look at the entire budget picture when we make decisions, but that was the largest issue.”
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