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Missouri Budget Project warns of potential for worse revenue growth drop

(via Flickr/Tracy O)

A group that advocates for low-incomeMissouriansis warning that a drop in revenues two months ago could get worse unless lawmakers take action next year.

AmyBlouin is executive director of the Missouri Budget Project.  She says revenue is currently projected to grow at only 4.1 percent, meaning that the state is facing a budget shortfall of $216 million.

"We're looking at potential shortfalls which could undermine our ability to invest in the education and health and other needs of our citizens," she said.

Credit (via Flickr/Tracy O)

State revenues in June came in much lower than expected, prompting Gov. Jay Nixon to withhold $115 million from the new state budget that took effect last month.  

"Sometimes forecasts of revenue can be a little unrealistic," Blouin said. "Forecasts are generally made during the budget process, and they're made sometimes a year in advance … they can adjust somewhat based on economic changes in the environment, or just the way people are shopping."

Analysis by the Missouri Budget Project suggests that revenue needs to grow at 6.5 percent for the Fiscal Year 2017 budget to be fully funded.

Blouin wants lawmakers to pass legislation to require revenue collection from online shopping, which Democratic lawmakers have been pushing for years. Republicans have refused to do so, saying it would put an additional financial burden on Missouri taxpayers.

She also said the tax cut passed by Republican lawmakers two years ago has not contributed to the lower numbers, but adds that once it kicks in revenue growth will slow down even further.

Missouri Budget Project's full report can be viewed here.

Follow Marshall Griffin on Twitter:  @MarshallGReport

Copyright 2021 St. Louis Public Radio. To see more, visit St. Louis Public Radio.

Missouri Public Radio State House Reporter Marshall Griffin is a proud alumnus of the University of Mississippi (a.k.a., Ole Miss), and has been in radio for over 20 years, starting out as a deejay. His big break in news came when the first President Bush ordered the invasion of Panama in 1989. Marshall was working the graveyard shift at a rock station, and began ripping news bulletins off the old AP teletype and reading updates between songs. From there on, his radio career turned toward news reporting and anchoring. In 1999, he became the capital bureau chief for Florida's Radio Networks, and in 2003 he became News Director at WFSU-FM/Florida Public Radio. During his time in Tallahassee he covered seven legislative sessions, Governor Jeb Bush's administration, four hurricanes, the Terri Schiavo saga, and the 2000 presidential recount. Before coming to Missouri, he enjoyed a brief stint in the Blue Ridge Mountains, reporting and anchoring for WWNC-AM in Asheville, North Carolina. Marshall lives in Jefferson City with his wife, Julie, their dogs, Max and Mason, and their cat, Honey.
Marshall Griffin
St. Louis Public Radio State House Reporter Marshall Griffin is a native of Mississippi and proud alumnus of Ole Miss (welcome to the SEC, Mizzou!). He has been in radio for over 20 years, starting out as a deejay. His big break in news came when the first President Bush ordered the invasion of Panama in 1989. Marshall was working the graveyard shift at a rock station, and began ripping news bulletins off an old AP teletype and reading updates between songs. From there on, his radio career turned toward news reporting and anchoring. In 1999, he became the capital bureau chief for Florida's Radio Networks, and in 2003 he became News Director at WFSU-FM/Florida Public Radio. During his time in Tallahassee he covered seven legislative sessions, Governor Jeb Bush's administration, four hurricanes, the Terri Schiavo saga, and the 2000 presidential recount. Before coming to Missouri, he enjoyed a brief stint in the Blue Ridge Mountains, reporting and anchoring for WWNC-AM in Asheville, North Carolina. Marshall lives in Jefferson City with his wife, Julie, their dogs, Max and Liberty Belle, and their cat, Honey.