Missouri

Missouri tax revenues declining in first months of fiscal year, raising concerns • Missouri Independent

Published

2 years ago

September 17, 2024

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.

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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.”

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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.”

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Missouri

Missouri Lottery Mega Millions, Pick 3 winning numbers for May 22, 2026

Published

2 hours ago

May 23, 2026

Press Room

The Missouri Lottery offers several draw games for those aiming to win big.

Here’s a look at May 22, 2026, results for each game:

Winning Mega Millions numbers from May 22 drawing

03-22-34-54-61, Mega Ball: 08

Check Mega Millions payouts and previous drawings here.

Winning Pick 3 numbers from May 22 drawing

Midday: 5-5-2

Midday Wild: 8

Evening: 7-7-0

Evening Wild: 8

Check Pick 3 payouts and previous drawings here.

Winning Pick 4 numbers from May 22 drawing

Midday: 6-4-7-5

Midday Wild: 0

Evening: 4-5-6-2

Evening Wild: 6

Check Pick 4 payouts and previous drawings here.

Winning Cash Pop numbers from May 22 drawing

Early Bird: 12

Morning: 09

Matinee: 08

Prime Time: 01

Night Owl: 10

Check Cash Pop payouts and previous drawings here.

Winning Show Me Cash numbers from May 22 drawing

07-12-22-38-39

Check Show Me Cash payouts and previous drawings here.

Feeling lucky? Explore the latest lottery news & results

Are you a winner? Here’s how to claim your lottery prize

All Missouri Lottery retailers can redeem prizes up to $600. For prizes over $600, winners have the option to submit their claim by mail or in person at one of Missouri Lottery’s regional offices, by appointment only.

To claim by mail, complete a Missouri Lottery winner claim form, sign your winning ticket, and include a copy of your government-issued photo ID along with a completed IRS Form W-9. Ensure your name, address, telephone number and signature are on the back of your ticket. Claims should be mailed to:

Ticket Redemption

Missouri Lottery

P.O. Box 7777

Jefferson City, MO 65102-7777

For in-person claims, visit the Missouri Lottery Headquarters in Jefferson City or one of the regional offices in Kansas City, Springfield or St. Louis. Be sure to call ahead to verify hours and check if an appointment is required.

For additional instructions or to download the claim form, visit the Missouri Lottery prize claim page.

When are the Missouri Lottery drawings held?

Powerball: 9:59 p.m. Monday, Wednesday and Saturday.
Mega Millions: 10 p.m. Tuesday and Friday.
Pick 3: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
Pick 4: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
Cash4Life: 8 p.m. daily.
Cash Pop: 8 a.m. (Early Bird), 11 a.m. (Late Morning), 3 p.m. (Matinee), 7 p.m. (Prime Time) and 11 p.m. (Night Owl) daily.
Show Me Cash: 8:59 p.m. daily.
Lotto: 8:59 p.m. Wednesday and Saturday.
Powerball Double Play: 9:59 p.m. Monday, Wednesday and Saturday.

This results page was generated automatically using information from TinBu and a template written and reviewed by a Missouri editor. You can send feedback using this form.

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Missouri

Missouri governor moves votes on taxes, constitutional amendments to August primary

Published

14 hours ago

May 22, 2026

Press Room

Missouri governor moves votes on taxes, constitutional amendments to August primary

JEFFERSON CITY, Mo. (KY3) -Gov. Mike Kehoe signed proclamations Friday placing four constitutional amendments on the August primary election ballot, moving up several questions that will shape Missouri’s tax structure and voting process.

The primary election will take place on August 4.

“With several significant issues set to appear before Missouri voters this year, it is important that we both prepare for the outcome of each proposal and allow each issue to receive the careful public consideration it deserves,” Kehoe said.

Two of the amendments are facing strong opposition: Amendments 4 and 5.

Past election data show more Republicans are likely to vote in the August primary election. Likely voters polled by Saint Louis University showed support for Amendments 4 and 5, with more Republicans in favor than Democrats.

All other ballot measures, if certified, will be on the November general election ballot.

Amendment 1: Natural resources sales tax

Amendment 1 continues for an existing sales tax one-tenth of one percent sales tax that supports soil and water conservation, state parks, and historic sites for 10 more years.

The ballot will read: “Shall Missouri continue for 10 years the one-tenth of one percent sales/use tax that is used for soil and water conservation and for state parks and historic sites, and resubmit this tax to the voters for approval in 10 years?

The measure allows continued collection of the existing sales and use tax, which generates revenue of approximately $140 million annually.”

Amendment 2: County assessors

Amendment 2 requires all charter counties, including Jackson County, to elect a county assessor and requires assessors to comply with training requirements established by state law.

The ballot will read: “Shall the Missouri Constitution be amended to:

require all charter counties, including Jackson County, to provide for the election of a county assessor; and
require assessors in all charter counties to comply with any training requirements established by general law?

State and local governmental entities estimate no costs or savings.”

Amendment 4: Constitutional amendments

Amendment 4 modifies current requirements that a simple statewide majority of voters may approve initiative petitions to amend the constitution. It requires a majority of voters in each congressional district to approve initiative petitions to amend the constitution, and makes available to each voter the full text of initiative petitions with their ballot.

The ballot will read: “Shall the Missouri Constitution be amended to:

Modify current requirements that a statewide majority of voters may approve initiative petitions to amend the constitution;
Require a majority of voters in each congressional district to approve initiative petitions to amend the constitution; and
Make available to each voter the full text of initiative petitions with their ballot?

The Department of Corrections estimates increased annual costs of up to $21,817. The Office of State Public Defender estimates an unknown fiscal impact. Other state governmental entities estimate no costs or savings. Local governmental entities estimate no costs or savings. ”Missouri Realtors formed the Protect Majority Rule Campaign Missouri to oppose Amendments 4 and 5.

“Amendment 4 would effectively kill our initiative petition process that our citizens have to make laws directly,” said spokesperson Scott Charton.

Moberly Republican Rep. Ed Lewis, who sponsored Amendment 4, said the change is needed.

“It’s not fair that only a few sections of the state, essentially around the urban core, are essentially dictating what the constitution is going to contain,” Lewis said.

A separate group, Protect MO Voters, supports Amendment 4.

“Missourians deserve a Constitution that is protected, not hijacked by out-of-state special interests and paid signature-gathering operations. Amendment 4 ensures that changes to our founding document have real statewide support,” the group said in a statement.

Amendment 5: Taxes

Amendment 5 requires the phase-out and elimination of the individual income tax based on revenue growth and requires the reduction of property taxes and other local taxes to offset any local sales tax revenue increases, while preserving local funding for public schools.

The ballot will read: “Shall the Missouri Constitution be amended to:

Phase-out the individual income tax based on revenue growth;
Reduce personal property and other local taxes when local revenues increase;
Modify the sales and use tax to eliminate income tax and reduce local taxes; and
Protect local funding for public schools and other purposes?

The proposal has no direct impact on state or local tax revenue. If passed, implementing legislation will have an unknown impact to state and local tax revenue. If implemented, state government entities expect a reduction of $57,000 annually in income tax check-off donations and implementation costs of at least $100,000.”

Amendment 5 is Kehoe’s tax plan. If voters approve the plan, lawmakers can raise sales tax or introduce new ones to replace the state income tax.

“The current system that we have now is 100 years old and we need to modernize it, we need to update it to reflect the current times that we live in,” said State Rep. Jon Patterson, speaker of the Missouri House.

New taxes could be placed on services, including real estate transactions.

“We call it the Everything Tax,” Charton said. “It would allow lawmakers to just ignore existing constitutional protections and raise new sales taxes and add new sales taxes on services.”

Kehoe said placing the income tax measure on the August ballot gives lawmakers additional time to prepare for implementation.

“Modernizing Missouri’s outdated tax code, specifically, will be a momentous task for the Missouri General Assembly,” Kehoe said.

A poll released this month from Saint Louis University and YouGov shows 52% of likely Missouri voters support a taxing system that relies on sales taxes instead of income taxes. However, when asked about taxing specific items, the taxes were a lot less popular. The most agreeable possible new tax is a sales tax on streaming services, like Netflix or Hulu.

To report a correction or typo, please email digitalnews@ky3.com. Please include the article info in the subject line of the email.

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Colombian national sentenced to 25 years for raping, impregnating 12-year-old girl in Missouri

Published

1 day ago

May 22, 2026

Press Room

Colombian national sentenced to 25 years for raping, impregnating 12-year-old girl in Missouri

Illegal immigrant accused of groping high school girls in Virginia sparks outrage

Emily Compagno, Kayleigh McEnany, Harris Faulkner, and Steve Doocy discuss the arrest of Israel Christopher Flores-Ortiz (19), an illegal immigrant from El Salvador, accused of groping 12 female high school classmates in Fairfax County, Virginia. The Outnumbered panel slams the school district for allegedly covering up the assaults for weeks, violating state law. They also criticize the Biden administration’s immigration policies, which allowed him to enter illegally in 2024.

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A Colombian national was sentenced this week to decades in prison for sexually exploiting a minor in Missouri, authorities said.

The Department of Homeland Security (DHS) said Brayanne Escobar-Guarnizo was sentenced to 25 years in prison for raping and impregnating a 12-year-old girl.

Escobar-Guarnizo was arrested by the Greene County Sheriff’s Office in September 2024 after authorities received a report alleging he had impregnated the girl.

DHS said investigators uncovered photos and messages allegedly showing that Escobar-Guarnizo repeatedly made advances toward the child and requested nude photos and videos.

MAN WHO PLEADED GUILTY TO RAPING 12-YEAR-OLD RELATIVE IS ILLEGAL IMMIGRANT FROM HONDURAS, DHS SAYS

Brayanne Escobar-Guarnizo was sentenced to 25 years in prison after pleading guilty to sexually exploiting a 12-year-old girl in Missouri, authorities said. (Department of Homeland Security)

According to DHS, Escobar-Guarnizo pleaded guilty to sexual exploitation of a minor in August 2025. He was initially charged with production of child pornography.

He was sentenced Monday to 300 months, or 25 years, in prison.

DHS Acting Assistant Secretary Lauren Bis praised the sentence in a statement.

ILLEGAL ALIEN SENTENCED TO 50 YEARS FOR PRODUCING CHILD PORNOGRAPHY INVOLVING OWN RELATIVES: ‘MONSTER’

Photos and messages showed Escobar-Guarnizo repeatedly made advances toward the child and requested nude photos and videos, according to investigators. (REUTERS/Robert Galbraith)

“This dirtbag was charged with production of child pornography and sexual exploitation of a minor after he raped and impregnated a 12-year-old girl,” Bis said in a statement.

According to DHS, Escobar-Guarnizo illegally entered the United States in 2023 under the Biden administration.

“Thanks to the investigative work of ICE law enforcement officers and our state and local partners, this child predator has now been sentenced to 25 years behind bars,” Bis said. “This illegal alien NEVER should have been allowed into our country by the Biden Administration.”

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Immigration and Customs Enforcement agents at work. (Michael M. Santiago/Getty Images)

“Under Secretary Mullin, we will continue to target criminal illegal aliens and get them OUT of our communities,” she added.

DHS said the sentencing followed an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), along with state and local law enforcement agencies.

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