Missouri finance officials last week warned that revenues collected in the current fiscal year through February are down by 1.4%, to $4.83 billion from $4.9 billion, over the same time last year, said budget director Linda Luebbering.
Collections were down by 10.5% for February alone compared to February in 2008. Sales and use taxes are down 6.5% for the year and 17% in February while individual income taxes increased 3% for the year but were down 3% in February. Corporate incomes taxes fell 7% so far this year and were down a dramatic 43% for February.
Officials don’t expect to see much improvement in the coming months that remain in the fiscal year, which ends June 30.
Gov. Jay Nixon has proposed a $23.1 billion budget for fiscal 2010. It includes $1 billion in spending cuts. The triple-A rated state faced a combined $600 million deficit in the current fiscal 2009 and next fiscal 2010 budgets.
The proposed budget relies on a 1% growth rate in various revenue streams, including slight increases in sales and incomes tax collections. Officials previously have said they expect revenue in the current fiscal year to fall 4% below 2008 collections.