You didn’t spend enough on Christmas presents.
The state released the tax revenue numbers for December. While the total state revenue crept up about 2.2%, that was substantially less than the roughly 5% growth needed to fund the current Fiscal Year budget.
Net general revenue (which largely pays school and Medicaid bills) inched-up just .3% compared to December 2015. (That .3% equals $24,000,000.00. These are big numbers.)
In other words, Governor Seal will have to look at slicing even more off this year’s state expenditures.
Again, the numbers were not bad…just not good enough. Individual income tax is up 3.5% for the fiscal year – but only .6% for December compared to 12/15. Sales tax income jumped by 1.2% for the year but was down 11.8% for December compared to 12/15. Blame bad weather for some of that decline but internet sales are the main culprit. As was explained to me, Missouri loses $14 in total tax revenue for every $100 spent on-line. (That’s due to lost sales tax, taxes on brick and mortar stores and their employees, less driving/less gas tax, the ‘multiplier,’ etc.)
Oh yes, all those tax breaks for business are paying off, for the businesses. Corporate income and franchise taxes are down 26.5% for the period from July 1, 2016 to December 31, 2016.
For more info click below:
https://oa.mo.gov/commissioners-office/news/state-releases-december-2016-general-revenue-report
Submitted by Glenn Koenen