Governor Jay Nixon today signed an executive order to close state offices on Black Friday, Nov. 23, in part because state revenues have increased. State Budget Director Linda Luebbering said the state’s revenue collections are up by 7.5 percent compared with last year.
“We’re beginning to see the improving economy’s impact on our revenue collections," Luebbering said. "It’s always a lag as the economy improves – takes a little while for that to start showing up in our revenue collections."
Luebbering said new jobs is the most critical aspect of increasing general revenue collections. The individual income tax is by far the biggest source for the general revenue fund. Before the national economic downturn, Missouri took in approximately $8 billion in general revenue collections. But this year, Luebbering said the state expects to take in about $7.6 billion – that's 400 million below 2008 revenues.
Sales tax and use collections increased 2.7 percent this year. But Luebbering said that doesn’t just indicate people are going back to work.
"It’s also people having confidence in the economy the economy is beginning to turn around so they’re more willing to buy things," Luebbering said.
Luebbering said Missouri’s general revenue collections are on track with what her office had projected.