Missouri Tax collections increase; Governor releases funds
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While state tax collections are increasing, allowing Missouri Gov. Jay Nixon to release $10 million more in funding for local schools, the budget plan for next fiscal year still calls for a reduction in total spending.
Net general revenue collections increased 6.3 percent in 2011 fiscal year-to-date, starting July 1 and ending Jan. 30, to $4.13 billion compared to $3.88 billion last year in the same period, according to the newest general revenue report released on Thursday.
Missouri Budget Director Linda Luebbering told Missouri Watchdog she is “cautiously optimistic.”
January was “slightly ahead” of estimates, she said, noting general revenue collections increased by 15.8 percent last month to $650.4 million compared to $561.2 million last year. But refunds were also down in January, dropping 46.2 percent from last year.
Because of the improvement in general revenue collections, the governor announced he released $10 million in additional funding to local schools to help cover transportation costs. ”This uptick in state revenue allows us to provide additional funds to help schools statewide pay for K-12 transportation,” Nixon said in a statement.
The funding for schools is in addition to $7.5 million released by the governor last month, Luebbering said.
Transportation was the last place the governor wanted to cut for the current fiscal year, she said.
But schools should not count on more funds being released, Luebbering said, noting the state needs to be ahead during the last part of the fiscal year, ending June 30, to match estimates for the full fiscal year.
“I wouldn’t say I’m optimistic about releasing more,” she said. “We’re just going to have to wait and see.”
Missouri House Budget Committee Chairman Ryan Silvey, a Republican from Kansas City, said he is heartened by the upturn in general revenue collections. But he cautioned the governor against trying to build a nest egg.
“The constitution states that the governor can only withhold funds if revenue collections do not meet projections,” Silvey said. “The governor needs to make sure he is not withholding outside his constitutional boundaries.”
