While revenue continues to decline in Missouri, there is a shining light within some of the numbers that might be pointing to a turnaround, State Budget Director Linda Luebbering told Missouri Watchdog.
Net general revenue collections declined 9.1 percent to $6.77 billion for fiscal year 2010, ending June 30th, compared to $7.45 billion in fiscal year 2009, according to figures released Friday.
Revenue dropped by 21.8 percent to $492.2 million in June compared to the same month last year.
For the full fiscal year, revenue has not been this low in Missouri since fiscal year 2005 when it totaled $6.71 billion, Luebbering said, noting that the state collection figures were not all bad news.
“There are some signs things are starting to turn around. We saw an increase in withholding taxes of 2.5 percent in the quarter,” Luebbering said.
“The other bit of shining light is sales tax. For the first time in two-and-half years it showed a bit of growth.”
Luebbering said the June totals were close to what was estimated and that she does not expect the downward trend in collections to continue. Plus, she said that she anticipates that the latest $280 million in state budget cuts, announced on June 17th by the governor, will be enough.
“We are hopeful that with those reductions, and with the little bit of good news appearing within the latest numbers, we will stay in balance for the remainder of the year,” Luebbering said.
By Brian R. Hook, firstname.lastname@example.org, (314) 482-7944