Missouri
Missouri tax revenues declining in first months of fiscal year, raising concerns • Missouri Independent
Missouri’s general revenue has lagged behind inflation for two years in a row. And with that gap widening, the next few months could determine whether state revenue will see a year-over-year decline for the first time in more than a decade.
“September is a good sort of bellwether one for us, because that’s where we get quarterly payments from both individuals and corporations,” Dan Haug, Gov. Mike Parson’s budget director, said in an interview with The Independent last week. “There’s not a lot of significant due dates in July and August, so we try not to even really look at what trends are until we get through the end of September.”
Through Friday, general revenue receipts are down more than 3% compared to the same period in fiscal 2024.
Need to get in touch?
Have a news tip?
Revenue grew 2.74% in fiscal 2023, while inflation was calculated at 3% by the federal Bureau of Labor Statistics. In fiscal 2024, which ended June 30, revenue grew 1.47%, while inflation was again pegged at 3%.
Missouri isn’t the only state suffering from sluggish revenue growth, according to a recent report from Pew Charitable Trusts. During the COVID-19 pandemic, many states — including Missouri — enjoyed a surge of revenue that drove new spending and tax cuts.
Missouri enjoyed double-digit revenue growth for two years, a trend that ended in early 2023. Nationally since the start of fiscal 2023, the report states, state government revenues have fallen below inflation rates and below the growth trend seen before the pandemic. That is the first time in 40 years that has happened outside of an economic recession.
“There’s less fiscal flexibility, but it’s unclear whether states will be really under strain or not, but it’s going to be more difficult than before,” said Alexandre Fall, a senior associate with Pew who was the main author of the report.
As they wrote this year’s budget in the spring, the Republican-led legislature tried to limit ongoing general revenue spending to the anticipated revenue of $13.2 billion. But even after Gov. Mike Parson vetoed $1 billion, the budget anticipates spending $15.1 billion in general revenue, dipping into surpluses accumulated during the surge in 2021 and 2022.
House Budget Committee Vice Chairman Dirk Deaton, a Republican from Noel, said lawmakers must continue to limit ongoing spending to new revenue.
“If revenue is lower in the future we will have to look carefully at core spending items to make sure the state budget is on a sustainable path and Missouri is well positioned to balance the budget year after year,” Deaton said.
State revenue was down in the early part of fiscal 2024 but ended up with modest growth, Deaton noted.
State Rep. Peter Merideth of St. Louis, the ranking Democrat on the Budget Committee, said future legislatures should commit to meeting state needs instead of hanging on to surpluses. Merideth is not returning to the House due to term limits.
Any spending cuts tied to the flow of revenue, rather than to the state’s total available resources, will fall heavily on education programs, Merideth predicted.
“We will cut education further,” he said. “Maybe it’s on the transportation line, or maybe it’s somewhere else, and we will cut higher education because those are about the only two slightly discretionary places that the legislature has to cut with large sums of money.”
Sitting on a surplus
On June 30, the general revenue fund held $4.8 billion, down $960 million from the balance a year earlier. That is still the third-highest year-end balance in state history.
Some of that money is committed to multi-year building projects, such as a $300 million mental health hospital in Kansas City, but most of it is unencumbered.
Other surplus money was stashed elsewhere. The state is holding $2.4 billion transferred from general revenue for major projects including rebuilding Interstate 70 and expanding the state Capitol Building.
Another $1.8 billion was held in accounts that can be spent like general revenue.
The question for lawmakers and state officials is how to spend from surplus funds without exhausting them, said Liz Farmer, a fiscal policy writer at Pew.
“States are spending down balance dollars at a rapid rate,” Farmer said.
The budget presented by Parson in January anticipated an unencumbered general revenue balance of $1.9 billion on June 30, 2025.
Along with major projects, in the past two years lawmakers have used the surplus to fund smaller items in their districts. Parson has vetoed many of those items as he cut $550 million from the budget in 2023 and $1 billion approved this year.
Future lawmakers need to resist the urge to earmark funds for their district, Merideth said. Stagnant or declining state revenue should mean extra funds are reserved for filling shortfalls in important programs.
“We have a surplus to work with in the short term but we haven’t hit an economic crash, which at some point will happen in the future,” Merideth said. “That’s when we’re going to be in real trouble.”
GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
During the recession that began in 2008, revenues fell from about $8 billion annual to $6.7 billion a few years later. Haug, who has worked for both the legislature and the executive branch, said the state is in good shape in case of a recession.
“We’ve got a very healthy fund balance to help us get through a minor downturn, if there is one, although I’m not sure that there even will be one,” Haug said. “We’re in a lot better spot to weather this kind of stuff than we’ve been probably in any of the time I’ve been here.”
There are structural changes in the cost of state government that are permanent, thanks to the surge of revenue.
The pay of every state worker hired before the beginning of 2022 has increased at least 20.7% under pay raise plans proposed by Parson. Some workers have received much larger percentage boosts, from a longevity pay plan approved this year, increases in night pay for workers in prisons, mental health hospitals and other custodial institutions and approval of a minimum salary of $15 an hour for all state jobs.
With state agency staff vacancy rates averaging more than 10%, the cost of running the state will go up as workers are added.
“Increased state employee pay and salaries, as well as permanent tax cuts, were two very popular policy choices that were made across states and were made in Missouri,” Fall said. “But now that we’re seeing all this excess revenue kind of pull back, and states are seeing decreased flexibility, it’s unclear what comes next.”
Missouri has passed two large permanent tax cuts, with income tax rate cuts enacted in a special session in 2022, and a bill exempting Social Security benefits from state income tax in 2023.
Together, that legislation will reduce state revenue by $1 billion or more annually. The next step in the phased-in tax cut passed in 2022 will take effect on Jan. 1, cutting the top income tax rate to 4.7%.
Those cuts will generate economic activity that will sustain revenues, Deaton said.
“Missouri has made very clear through our tax policy we are more interested in growing the bank accounts of the people as opposed to growing the amount of monies coming to Jefferson City,” he said.
With a new governor coming into office in January and new legislative leadership, tapping the surplus could be a temptation.
“Whoever is sitting in that governor’s mansion and whoever is sitting in the budget committee chair will make a significant difference and it’s hard to predict,” Merideth said.
Revenue picture
In the last full fiscal year before the pandemic, the Missouri general revenue fund took in $9.6 billion. In the fiscal year that ended June 30, the total was $13.4 billion, 1.47% more than in the previous year.
Two of the main sources of state revenue — personal and corporate income taxes — saw a decline in collections in fiscal 2024. So far this year, the decline in revenue received so far has extended to sales tax collections.
The surge in revenue coincided with the highest inflation rates in 40 years and sales tax growth led the way, thanks to consumers spending federal pandemic relief aid along with higher wages and prices.
There is no evidence in the Missouri economy that would show the current decline in sales tax collections is anything but temporary, Haug said.
“People may be pulling back a little bit temporarily to pay off debt and things like that, but eventually the fundamentals are what’s going to drive it,” Haug said.
Missouri added 62,400 jobs from July 2023 to July 2024 and personal income grew at an annual rate of 6.7% in the first quarter of the year. State GDP is up 1.6% on an annual basis and inflation, while slowing, continues, with prices nationally about 2.5% higher than a year ago.
“Long term, that’s what’s going to drive our revenues, and I think that’s still what’s going to drive our revenues,” Haug said.
With the end of pandemic restrictions, consumers are spending more on non-taxed services and travel, Farmer said, as well as substituting cheaper goods when they make purchases.
Missouri estimates its revenue each December for the remainder of the fiscal year and the coming year. A longer horizon for budget outlooks would make the state better prepared for possible trouble, she said.
“That is one of our key benchmarks for state fiscal health, and something that could be really helpful for assessing what these impacts on personal income tax and those cuts look like for the state down the line for revenue,” she said.
A longer-term outlook may be helpful, Deaton said, but experience shows that the short-term estimates aren’t particularly accurate.
“There have been times they were very close and other years when estimates missed badly,” Deaton said. “The further you extend out, the greater the margin of error.”
Missouri
Scouting report: Missouri
Scouting report: Missouri
Oklahoma and Missouri isn’t a “rivalry” game, but it’s likely a game that both fanbases have had circled for some time.
Though for the Sooners, the stakes might be a little higher.
The Sooners (5-4, 1-4 SEC) got back on track last weekend against Maine, but they still face the task of attaining bowl eligibility. Considering their remaining schedule includes Alabama and at LSU, and they’ve struggled significantly in SEC play this season, this weekend is likely their best chance to snap a three-game conference losing streak and snag a highly-coveted sixth win.
The Tigers (6-2, 2-2) have a fine record, but the season has been a sight disappointment so far. Considered a dark horse candidate to win the SEC, and potentially make the College Football Playoff, they’ve lost two of their last three games by a combined score of 74-10. Three of their wins have come by six points or fewer, and that includes a 27-21 victory over Boston College.
But they’ve been a bit hamstrung by injuries particularly to quarterback Brady Cook, who sustained a hand injury in last month’s 34-0 loss to Alabama. Cook’s status is unclear for this weekend, and if backup Drew Pyne is forced back into action, that would present a major blow to the Tigers’ offense.
The Tigers are a 3.5-point home favorite this weekend. The Sooners need a win to secure bowl eligibility. The Tigers need a win to keep themselves viable in the playoff race. Considering the recent history between these two teams — the battles for Cayden Green and Williams Nwaneri come to mind — and that this’ll be the first time these two teams have faced off since 2011 when they were Big 12 foes, there’s a lot of anticipation for this one.
Here’s an early look at the Tigers and what the Sooners can expect:
GAME INFO
When: 6:45 p.m. CT
Where: Faurot Field at Memorial Stadium, Columbia, Missouri
TV: SEC Network
Radio: 107.7 FM
SERIES HISTORY
All time series record: OU leads 67-24-5
Last meeting: OU won 38-28, Sept. 24, 2011
MISSOURI STATS
Scoring offense: 27.8 points per game (70th nationally)
Scoring defense: 17.88 points per game (17th)
Total offense: 399.5 yards per game (61st)
Total defense: 299.6 yards per game (13th)
Rushing offense: 171.6 yards per game (55th)
Rushing defense: 134.9 yards per game (54th)
Passing offense: 227.9 yards per game (70th)
Passing defense: 164.8 yards per game (10th)
Key players
Brady Cook, QB
196.88 yards per game, 62.8% completion, 11 total TD, 1 INT
Drew Pyne, QB
49.6 yards per game, 63.6% completion, 0 TD, 3 INT
Nate Noel, RB
503 yards, 85 carries, 5.9 yards per carry, 2 TD
Marcus Carroll, RB
83 carries, 401 yards, 4.8 yards per carry, 6 TD
Theo Wease Jr., WR
37 receptions, 482 yards, 13.03 yards per reception
Luther Burden, WR
40 receptions, 450 yards, 4 TD
Marvin Burks Jr., S
47 tackles, 1 INT
Corey Flagg Jr., LB
43 tackles, 3.5 TFLs, 1 sack, 1 INT
Johnny Walker Jr., DE
21 tackles, 5.5 TFLs, 4.0 sacks
STORYLINES
OU’s rushing attack
The Sooners have found a rhythm running the ball the last two weeks. They rushed for 207 yards against Ole Miss — not including yards lost from sacks — on over four yards per carry. They kept that going last weekend against Maine, rushing for 386 yards on over seven yards per carry. Jovantae Barnes has been the engine, rushing for 340 yards on 6.7 yards per carry.
They have an excellent chance to keep that going against a suspect Missouri rushing defense. Their weak point has been defending the run — they’ve allowed 4.4 yards per carry this season, which ranks 76th nationally. In their losses to Texas A&M and Alabama, they allowed 6.56 and 7.32 yards per carry, respectively.
Considering the Tigers have been much better at defending the pass, the Sooners are going to have to establish the run. It’s not going to be easy, particularly as Michael Tarquin, Jacob Sexton and Jake Taylor work through issues. But given the Sooners’ success running the ball, and Missouri’s struggling to defend it, that’s going to have to be a focus on Saturday.
Who is at quarterback for Missouri?
It’s unclear whether Cook or Pyne will be at quarterback, and that will arguably have the biggest impact on the game.
Cook has been efficient this season and has done a good job of taking care of the ball. He’s averaging 11.5 yards per completion and has shown an ability to move the ball down the field.
When Pyne is in the game, the offense completely stalls. Not only has he been turnover prone, he’s shown incapable of operating a viable offense. He’s averaging fewer than 7.1 yards per completion. He played most of the game against Alabama after Cook exited with an injury, completing six of 12 passes for 42 yards and three interceptions.
If it’s Pyne at quarterback, the OU defense will be able to let loose. They’ll be able to blitz Pyne while not being afraid of anything hurting them down the field. But if it’s Cook at quarterback, it’ll be a much different task for OU’s defense.
Missouri
Patrol reports 14 arrests in north Missouri from October 31 to November 3, 2024
Share To Your Social Network
The Missouri State Highway Patrol reported a series of arrests made in north Missouri between October 31, 2024, and November 3, 2024. During this period, a total of 14 individuals were arrested for various charges, ranging from driving while intoxicated to warrants for serious offenses.
Justin R. Aley, 42, of Maryville, Missouri, was arrested on October 31, 2024, at 8:50 a.m. in Gentry County. He faced charges of felony driving while intoxicated, possession of a controlled substance (amphetamine), unlawful possession of drug paraphernalia, and failure to drive on the right half of the roadway. He was held at the Daviess-DeKalb Regional Jail on a 24-hour hold.
Brett M. Boies, 28, from Lee’s Summit, Missouri, was taken into custody on October 31, 2024, at 9:51 a.m. in Buchanan County. He was arrested on a Platte County misdemeanor warrant for a traffic violation and was held at the Buchanan County Law Enforcement Center. His arrest was bondable.
Katherine M. Flores, 37, of St. Joseph, Missouri, was arrested on October 31, 2024, at 11:41 a.m. in Buchanan County on a Buchanan County misdemeanor traffic warrant. She was also held at the Buchanan County Law Enforcement Center, and her arrest was bondable.
Nico R. Munson, 25, from Robinson, Kansas, was apprehended on November 1, 2024, at 6:20 a.m. in Buchanan County. He was charged with a misdemeanor warrant for dangerous drugs out of Buchanan County and speeding. He was held at the Buchanan County Law Enforcement Center and his arrest was bondable.
Logan B. Sullivan, 35, of Saint Joseph, Missouri, was arrested on November 2, 2024, at 1:16 a.m. in Andrew County. He was charged with misdemeanor driving while intoxicated and careless and imprudent driving. Sullivan was held at the Andrew County Sheriff’s Department for a 12-hour hold.
Megan L. McCleery, 54, from Kansas City, Missouri, was taken into custody on November 2, 2024, at 4:13 p.m. in Clinton County. She faced charges that included a Platte County Sheriff’s Office felony warrant for probation violation, possession of a controlled substance (felony), and unlawful use of drug paraphernalia (misdemeanor). She was held at the Clinton County Sheriff’s Office on a 24-hour hold.
Justin L. Grider, 41, of St. Joseph, Missouri, was arrested on November 3, 2024, at 9:45 p.m. in Buchanan County. He faced a misdemeanor warrant for driving while revoked or suspended issued by the St. Joseph Police Department and a charge of failing to wear a seat belt. He was held at the Buchanan County Law Enforcement Center, with the arrest being bondable.
Aaron D. Benton, 36, from Independence, Missouri, was apprehended on October 31, 2024, at 1:13 p.m. in Linn County. He was charged with felony failure to register as a sex offender, speeding, and driving with no valid plates. Benton was held at the Linn County Jail and later released.
Kimberly A. Smith, 45, of Kahoka, Missouri, was arrested on November 1, 2024, at 2:12 p.m. in Lewis County on a warrant for a Canton city ordinance violation. She was held at the Marion County Jail, and her arrest was bondable.
Francis A. Telarico, 47, from Kirksville, Missouri, was arrested on November 2, 2024, at 12:28 a.m. in Randolph County. He faced a charge of felony driving while intoxicated and was held at the Randolph County Jail on a 12-hour hold.
Darryl M. Webb, 58, of Minneapolis, Minnesota, was taken into custody on November 2, 2024, at 2:20 p.m. in Lewis County. He was arrested on a felony Minnesota warrant for parole violation and was held at the Lewis County Jail with no bond allowed.
Angel M. Branford Lezcano, 52, from Miami, Florida, was arrested on November 3, 2024, at 1:36 a.m. in Adair County for driving while intoxicated. He was processed roadside and released.
Joseph A. Wolfe, 32, of Palmyra, Missouri, was arrested on November 3, 2024, at 6:25 p.m. in Marion County. He faced charges that included DWI with a person under 17 in the vehicle (three counts), failure to wear a seat belt, failing to secure a child under 16 years old with a seat belt, failing to secure a child under 8 years old with a seat belt (two counts), and failing to yield to an approaching vehicle. Wolfe was held at the Marion County Sheriff’s Department and later released.
Douglas R. Barnes, 49, from Brookfield, Illinois, was apprehended on November 3, 2024, at 8:42 p.m. in Macon County for felony driving while suspended. He was held at the Macon County Sheriff’s Department and subsequently released.
Post Views: 371
Related
Share To Your Social Network
Missouri
Class of 2025 Defensive Lineman Decommits from Missouri
2025 3-Star defensive lineman Joshua Lewis of Dutchtown High School in Geisman, Louisiana officially announced that he is no longer committed to Missouri this week with a post on social media.
The 6-foot-4, 245 lb. defender said in his post on X, “Due to unfortunate circumstances I am not longer committed to the University of Missouri. Recruitment is back open.”
Lewis originally committed to Missouri back in April, choosing the Tigers over two other schools he had named in his top three: Houston and Tulane. Other than his final three, the big bodied defender had a plethora of division one offers from schools all around the country.
It is unclear what the, “unfortunate circumstances,” are that Lewis is referring to with his social media post, but a lot of time still remains before the class of 2025 makes its final decisions, so a return to the Tigers could still be in play.
As of now, Missouri holds the 18th ranked recruiting class for 2025 with now 18 commitments. The Tigers are expecting visits this month from two prospects in the 2025 class: 3-Star wide receiver Jamar Browder from Lake Worth, Florida and 3-Star safety Jeremiah Jones from Murray, Kentucky.
Jones committed to Nebraska this summer, but Eli Drinkwitz and his staff hope to potentially flip the talented prospect ahead of signing day.
-
Sports1 week ago
Freddie Freeman's walk-off grand slam gives Dodgers Game 1 World Series win vs. Yankees
-
News1 week ago
Sikh separatist, targeted once for assassination, says India still trying to kill him
-
Culture1 week ago
Freddie Freeman wallops his way into World Series history with walk-off slam that’ll float forever
-
Technology1 week ago
When a Facebook friend request turns into a hacker’s trap
-
Business3 days ago
Carol Lombardini, studio negotiator during Hollywood strikes, to step down
-
Health4 days ago
Just Walking Can Help You Lose Weight: Try These Simple Fat-Burning Tips!
-
Business3 days ago
Hall of Fame won't get Freddie Freeman's grand slam ball, but Dodgers donate World Series memorabilia
-
Business7 days ago
Will Newsom's expanded tax credit program save California's film industry?