The state of Missouri’s individual income tax collections are up, but the state’s income from sales taxes are lagging well behind.
And overall, the state isn’t collecting enough money to cover all the budget items that the General Assembly approved this spring.
That’s how state Budget Director Linda Luebbering interprets the latest state revenue numbers for August, which were released Wednesday.
The state’s overall general-revenue collections were up 2.7 percent in August, compared to August 2013, an increase of just over $18 million. For the fiscal year, which began July 1, the state has taken in 4.3 percent more than it did a year ago.
But that year-to-date increase amounts to only an additional $50 million. And that’s nowhere near what the state will need to bring in to pay for the spending that legislators had sought, Luebbering said.
She said in an interview that the state’s income would need to increase by about 10 percent to cover the General Assembly’s budget. That percentage needs to go up to 12 or 13 percent, she added, if legislators override some or all of Nixon’s vetoes of $776 million in tax breaks.
As it stands, the state’s income needs to increase by 5.2 percent this fiscal year to cover the pared-down budget that Nixon currently has imposed.
Using his line-item veto powers, Nixon in July 1 knocked out $276 million from the General Assembly’s budget, and has withheld $846 million more. The latter can be restored if state income allows.
The General Assembly is expected to take up at least some of those budgetary vetoes during its veto session, which begins Sept. 10.
Nixon contended Tuesday during an appearance before the St. Louis Regional Chamber that legislators had “blown up the budget’’ with their too-generous spending plans, coupled with tax breaks.
Here’s the state of Missouri’s latest general-revenue breakdown, as released by the state's Office of Administration:
Individual income tax collections
Increased 8.4 percent for the year, from $784.4 million last year to $850.3 million this year.
Increased 7.8 percent for the month.
Sales and use tax collections
Increased 0.5 percent for the year, from $341.8 million last year to $343.4 million this year.
Increased 1.0 percent for the month.
Corporate income and corporate franchise tax collections
Decreased 5.1 percent for the year, from $30.8 million last year to $29.3 million this year.
Decreased 1.9 percent for the month.
All other collections
Increased 3.2 percent for the year, from $63.2 million last year to $65.2 million this year.
Decreased 6.3 percent for the month.
Refunds
Increased 25.3 percent for the year, from $71.6 million last year to $89.8 million this year.
Increased 57.1 percent for the month.
