Missouri's revenue up 2.8 percent for month of July
Wednesday, August 3, 2005
JEFFERSON CITY, Mo. -- State revenue in July rose 2.8 percent compared with the previous year, putting the state roughly on target to meet its new budget, the Office of Administration said Tuesday.
Net state general revenue totaled $430.5 million, up from $418.8 million a year ago, for July, the first month of the 2006 fiscal year.
The budget counts on 2.9 percent growth in general revenue for the year but only 2.1 percent growth was expected in July, said commissioner Michael Keathley.
Keathley also said that while increasing revenue is a good sign, there are still concerns about continually sluggish sales tax collections.
Sales tax collections for July were down 8.6 percent from the previous year, dropping from $142.6 million in July 2004 to $130.3 million this year. The drop is of particular concern because the economy seems to be improving and other tax collections are on the rise. Possible factors include growing Internet sales, court rulings on what is taxable and a decades-old tax code, Keathley said.
Individual income tax collections were up 5.7 percent in July, rising to $290.6 from $274.9 million last year. Individual income taxes comprise about 60 percent of the state's general revenue, with about 30 percent coming from state sales and use taxes.
Corporate income tax collections more than doubled, from $15.3 million last fiscal year to $33.1 million this July.
Already this fiscal year, Missouri government has been forced to dip into its reserves because of low cash flow -- to the tune of $200 million -- to make regular payments to public schools.
Although July typically is a slower revenue month for the state, the government has not normally had to dip into its reserves so early.
On the Net:
Office of Administration: http://www.oa.mo.gov