The following editorial was published in the St. Joseph News-Press on Jan. 21:
Missourians looking to new leadership in Jefferson City for tax relief may have to put that thought on hold.
The same goes for those who hope to see a boost in spending on their favorite programs, including education.
The budget reality is Missouri's rate of tax collections is falling far short of projections. Former Gov. Jay Nixon had estimated state revenues would grow 4.1 percent this year. Legislators cut that to 3.4 percent when building the budget, but now both they and new Gov. Eric Greitens have lowered that expectation to 3 percent.
Growth is a positive for a budget, but this amount is not enough to cover the rising costs of programs like Medicaid or to offset previously enacted changes in the tax code that are lowering corporate taxes.
This is why Nixon cut about $200 million from planned current-year spending before leaving office, and why Greitens reduced planned spending by another $146 million earlier this month.
And what about next year? Without more adjustments, the projection for the fiscal year starting July 1 is for the budget to be about $450 million out of balance.
Given this outlook, we have no problem with Greitens, in office only since Jan. 9, breaking from tradition and taking a few more days to propose his budget. He has promised to deliver that to the General Assembly by early February.
We also think House Budget Committee chairman Scott Fitzpatrick, R-Shell Knob, is on the right track. He is sending early signals that additional tax cuts are unlikely to win legislative support unless they are offset by other budget adjustments, such as an end to some tax credit programs.
Greitens' State of State address hit upon several themes important to him: passage of the right-to-work proposal barring collection of mandatory union fees, an improved legal climate for businesses, restoring trust in government, support for law enforcement and first responders, reform of tax credits and improvements to the welfare system.
At the heart of these proposals is an understanding we cannot spend or tax our way out of our problems.
It is increasingly clear that what Missouri needs most now is a focus on stimulating economic growth and private investment. This will spread the tax burden more broadly while providing the funds government needs to operate and require a smaller percentage tax from everyone.