Missouri's financial picture looks much better today than it did a year ago at this time.
The latest revenue figures show tax collections increased by 8.8 percent during Fiscal Year 2015, which ended Tuesday.
"Well above normal," said Linda Luebbering, budget director for Gov. Jay Nixon. "(In) a typical year, we would see about 3.5 percent growth ... in Fiscal Year 2014, our revenue actually declined (by about 1 percent) … so we were expecting some good improvement in 2015 and we did see it."
Luebbering credits a rise in individual income tax collections as the primary factor for the rise in revenue.
"With growth of 8.5 percent for the fiscal year, (it's) our biggest source of general revenue," Luebbering said. "Clearly a sign that you've got more people working: higher paychecks; that's why our individual income tax collections (are) up."
Luebbering also cites a larger-than-expected increase in corporate tax collections for the improved revenue picture, which rose by 3.3 percent in FY2015.
In all, Missouri collected $8.71 billion between July 2014 and June 2015, compared to $8 billion the year before.
Luebbering says revenue growth fell just short of the 10 percent growth rate needed for Gov. Jay Nixon to release funds he was still withholding from the FY2015 state budget. However, she doesn't expect line item reductions from the new state budget that took effect Wednesday.
Follow Marshall Griffin on Twitter: @MarshallGReport
