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State income tax collections fall, sales taxes gain

State income tax collections fall, sales taxes gain

Nixon borrows $100 million again

September 7th, 2012 in News

If state revenue is any indication, Missourians aren't making as much money but are spending more, and that is affecting the current state budget.

The budget shortfall has prompted Gov. Jay Nixon to borrow another $100 million from the state's emergency rainy day fund.

The August state revenue report issued this week by the Missouri Office of Administration shows individual and corporate state income tax collections are down for the first two months of the fiscal year, but the state loss in income tax revenue was more than offset by much larger sales tax collections.

Overall, state tax collections are up 6.6 percent for the 2013 fiscal year, compared to the 2012 fiscal year ending last June 30.

State Budget Director Linda Luebbering said revenue collections for the first two months of the 2013 fiscal year total $1.16 billion, compared to 1.09 billion for the same period last year.

But Lubbering said these figures are distorted because revenues got a temporary boost by Missouri's share of a national mortgage settlement.

When the 2013 fiscal year budget starting July 1 of this year was adopted, it was based on assumed revenue growth this year of 3.9 percent.