8 bills impact could hit home

Nixon staff says sales tax cuts could cost Mid-Missouri more than $27 million

Gov. Jay Nixon's administration predicted Tuesday that if all eight tax cut bills that lawmakers passed on the General Assembly's last day go into effect, Missouri government could lose just over $425 million a year - and counties, cities and special districts could lose another $350 million each year in sales tax income.

Using the administration's numbers, 46 Mid-Missouri towns and cities would lose at least $12.6 million in sales tax revenues, 10 county governments would take in almost $9.92 million less each year and 30 area school districts would lose more than $4.83 million from the one-cent sales tax for education that voters approved about 30 years ago.

"If they have a sales tax, we have included them and made an estimate of the impact on that jurisdiction," state Budget Director Linda Luebbering told the News Tribune.

Luebbering released numbers showing that Jefferson City's government could lose about $2.5 million a year if all of the proposed changes become law.

Cole County government could lose more than $2.1 million.

And Jefferson City's Public School District would lose over $902,000; the Blair Oaks district would take in almost $120,000 less, and both the Russellville and Eugene districts each might lose more than $61,000.

In Callaway County, Fulton could come up almost $389,000 short, while Holts Summit could lose almost $122,000.

Callaway County's government would face an estimated $434,000 in lower sales tax revenues than in 2013.

The Fulton Public Schools would fall more than $223,000 short, while South Callaway R-2 would have more than $82,500 in lower revenues and New Bloomfield R-3 would miss more than $67,000.

Twelve days ago, on the last day of the General Assembly's session, Nixon told reporters lawmakers "blew up" the state budget they had passed just a week earlier, by passing those eight bills during the session's final eight hours. He claimed the bills will cost state government an estimated $483 million a year in reduced general revenues.

On May 16, Nixon's staff had not had time to calculate the impact on local governments.

"We went back and did a more thorough analysis - and now we're estimating $425 million to the state," Luebbering said. "Of that, $283 million is general revenue."

She noted each local government is impacted differently, depending on the amount of sales taxes voters have approved for them to collect.

"It could actually be a bigger problem for locals, because these particular tax breaks are heavily focused on sales taxes," Luebbering said Tuesday, "and sales taxes tend to be a larger proportion of local budgets than they do the state budget.

"So, local entities that are more reliant on sales taxes are going to be, proportionally, more heavily impacted by these types of cuts."

In order to make comparisons for local governments throughout the state, she said, her staff used the actual 2013 collections for state government and for each local government - then assumed there would be no changes in 2014, 2015 or beyond.

That's why the numbers are an estimate, not an exact prediction.

And the numbers would change if Nixon vetoed any, or all, of the eight bills - and lawmakers sustained the vetoes.

"I think local entities need to, at least, be planning for the potential that they're going to be having less revenue, starting on Aug. 28," Luebbering said. "So, if none of them go into effect, then they will have thought through their budget for no reason.

"But we would rather have them think through it, and be prepared."

Nixon spokeswoman Channing Ansley said Tuesday the governor's staff still is studying the bills, and has announced no decisions on any of the eight measures.

Later today, she said, Nixon will go to St. Louis and Kansas City to discuss "the fiscal impact of the special interest exemptions and giveaways passed by the General Assembly on the final day of the legislative session."

Tax cut supporters often argue that the cuts ultimately will generate more revenues.

"These tax breaks go to existing businesses for doing existing things. They do not require new jobs and do not require new investment," Luebbering said Tuesday. "We don't think that for any given entity that this is going to be something that changes what they had planned to do.

"It's a big impact in total for the state and local governments - but, will it change what any given business does or doesn't do? We have no reason to believe that it would."

Estimated sales tax reductions from 8 bills lawmakers passed May 16

Compiled by the Office of Administration, Budget and Planning division

School districts' Prop C revenues

COLE COUNTY

Jefferson City - $902,562

Blair Oaks R-2 - $119,884

Cole R-5/Eugene - $64,625

Cole R-1/Russellville - $61,746

CALLAWAY COUNTY

Fulton - $223,248

South Callaway R-2/Mokane - $82,654

New Bloomfield R-3 - $67,108

BOONE COUNTY

Columbia - $1,171,395

Southern Boone R-1/Ashland - $153,360

CAMDEN COUNTY

Camdenton R-3 - $426,601

GASCONADE COUNTY

Gasconade R-2/Owensville - $190,650

Gasconade R-1/Hermann - $97.382

MARIES COUNTY

Maries R-2/Belle - $86,983

Maries R-1/Vienna - $51,003

MILLER COUNTY

Eldon R-1 - $195,796

School of the Osage - $190,069

Iberia R-5 - $75,874

St. Elizabeth R-4 - $24,219

Miller R-3/Tuscumbia - $23,585

MONITEAU COUNTY

Moniteau R-1/California - $136,317

Tipton R-6 - $57,268

High Point R-3 - $11,076

Jamestown C-1 - $21,138

Clarksburg C-2 - $12,868

Moniteau R-5/Latham - $8,337

MORGAN COUNTY

Morgan County R-2/Versailles - $144,910

Morgan County R-1/Stover - $67,955

OSAGE COUNTY

Osage R-3/Fatima-Westphalia - $79,575

Osage R-2/Linn - $63,938

Osage R-1/Chamois - $21,443

Impact on counties' sales tax receipts

Cole County - $2,101,512

Callaway County - $434,183

Boone County - $4,570,196

Camden County - $1,256,008

Gasconade County - $300,093

Maries County - $100,672

Miller County - $462,438

Moniteau County - $189,060

Morgan County - $268,996

Osage County - $235,504

Impact on cities' sales tax receipts

COLE COUNTY

Jefferson City - $2,474,383

St. Martins - $10,456

Wardsville - $6,324

Taos - $3,061

Centertown - $2,846

St. Thomas - $1,868

CALLAWAY COUNTY

Fulton - $388,843

Holts Summit - $121,834

Kingdom City - $70,334

Auxvasse - $16,957

New Bloomfield - $4,801

Mokane - $1,451

BOONE COUNTY

Columbia - $5,743,633

Ashland - $666,056

Hartsburg - $621

CAMDEN COUNTY

Osage Beach - $1,141,813

Camdenton - $379,898

Sunrise Beach - $66,180

Village of Four Seasons - $37,110

Linn Creek - $35,250

GASCONADE COUNTY

Owensville - $192,568

Hermann - $124,842

Rosebud - $9,516

Bland - $6,317

Morrison - $577

Gasconade - $242

MARIES COUNTY

Belle - $30,100

Vienna - $20,851

MILLER COUNTY

Lake Ozark - $310,378

Eldon - $253,971

Iberia - $25,924

St. Elizabeth - $3,103

Tuscumbia $1,711

Bagnell - $1,115

Brumley - $638

MONITEAU COUNTY

California - $99,350

Tipton - $32,992

Clarksburg - $878

MORGAN COUNTY

Versailles - $153,600

Laurie - $98,267

Gravois Mills - $3,576

OSAGE COUNTY

Linn - $30,226

Freeburg - $14,485

Westphalia - $5,283

Meta - $3,919

Chamois - $3,647

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