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Missouri revenue up 10 percent for 2013 budget year

Missouri revenue up 10 percent for 2013 budget year

July 4th, 2013 by CHRIS BLANK, Associated Press in News

JEFFERSON CITY, Mo. (AP) - Missouri wrapped up its 2013 fiscal year with additional revenues, but that alone does not appear enough to thaw several hundred million dollars frozen in the current year's budget.

On Wednesday, the state reported nearly $8.1 billion in general revenues during the 2013 fiscal year that ended Sunday. That was 10.1 percent higher compared with the 2012 budget year and greater than the 4.8 percent growth rate upon which the budget had been based.

Linda Luebbering, who is the budget director for Gov. Jay Nixon, said the cash balance is expected to be about $447 million. That is $339 million more than was expected but would be roughly half the balance in a normal year, she said.

Missouri's individual income tax collections during 2013 increased 9 percent compared with 2012, while corporate income taxes were up 4.5 percent. Collections from sales taxes increased by 1.3 percent. Tax refunds declined 7.8 percent.

The budget news does not appear to affect the spending Nixon put on hold last week when he signed a nearly $25 billion operating budget for 2014. Nixon froze $400 million of spending for education, building repairs and state services because of concern that state legislators could override his veto of an income tax measure that he argues would drain state coffers.

Nixon vetoed the income tax cut approved by the Republican-led Legislature that would have phased in a tax deduction for business income over the next five years. It also would have gradually reduced the income tax rate for individuals and corporations over the next decade.

Luebbering said Wednesday the growth in Missouri's revenues was considered before the budget action and that the income tax cut was the impetus.

"Until we have resolution on that, the restrictions will stay in place," she said.