State revenue numbers continue to lag behind projections
This article first appeared in the St. Louis Beacon, Feb. 2, 2012 - Missouri state government's income continues to grow less than what the current budget projected, which likely will lead to budget withholdings in the final months. That's the word from state budget director Linda Luebbering, in response to the latest year-to-date growth rate of 1.3 percent, compared to a year ago.
This fiscal year's budget is based on growth of 2.7 percent.
But Luebbering emphasized that there's no plans for immediate cuts in this year's budget, which runs through June 30. "Not at this time,'' she said.
The state's monthly update reported that the net general-revenue collections for January 2012 "increased by 2 percent compared to those for January 2011, from $645.3 million to $658.5 million."
But the state will need much stronger increases during the next five months to meet the 2.7 percent annual growth rate used to calculate this fiscal year's budget. The budget director acknowledged that's unlikely.
Still, Luebbering said the January 2012 revenue numbers did contain some good news -- most notably, the 4.1 percent increase, compared to January 2011, in individual income taxes. For the entire fiscal year so far, the individual income-tax growth is 2 percent.
The state also saw sales and use tax collections increase by 3.5 percent during the month, compared to a year ago.
But that has been offset by sharp declines in corporate income tax payments, down 13 percent during January, compared to a year ago. For the year, corporate income taxes are down 10.8 percent.
Luebbering said the decline had nothing to do with the elimination of the state's corporate franchise tax, which she said shouldn't show up in revenue numbers until April.
She said she hoped the drop signaled, instead, more investment in corporate equipment and infrastructure. Such spending does offset state tax payments.
Here's the breakdown
GROSS COLLECTIONS BY TAX TYPE
Individual income tax collections
Increased 2.5 percent for the year, from $2.96 billion last year to $3.04 billion this year.
Increased 4.1 percent for the month.
Sales and use tax collections
Increased 2.4 percent for the year from $1.05 billion last year to $1.08 billion this year.
Increased 3.5 percent for the month.
Corporate income and corporate franchise tax collections
Decreased 10.8 percent for the year, from $264.4 million last year to $235.8 million this year.
Decreased 13.0 percent for the month.
All other collections
Decreased 23.1 percent for the year, from $244.6 million last year to $188.0 million this year.
Decreased 24.6 percent for the month.
Decreased 8.9 percent for the year, from $427.4 million last year to $389.1 million this year.
Increased 6.3 percent for the month.