COUNTY FIGHTING RECESSION

JACKSON - Cape Girardeau County officials have observed an apparent downturn in the economy based on the first three sales-tax checks received in 1991.

The checks, which covered sales in the county from early November to mid-February, were about $41,000 less than those for the first three months of 1990.

During the first quarter of 1990, Cape County's receipts from its half-cent sales tax were $818,062.85. For the first quarter of this year the receipts were $776,762.78. That means the county's sales tax is about 5 percent behind the pace of 1990.

Presiding Commissioner Gene Huckstep said he is concerned by the trend and says commissioners will keep a close watch on the situation.

The county's entire general-revenue budget is derived from the sales tax. In preparing the county's 1991 budget, the commission budgeted $3 million in sales-tax revenue, which is about what was received last year.

Cape County's sales-tax growth between 1989 and 1990 was 4.4 percent, and Huckstep said the commission is hoping for at least that much growth this year. "We're keeping a close watch on the situation and are very aware that sales-tax revenue goes hand-in-hand with the economic conditions," said Huckstep.

Huckstep said he is optimistic that in the next few months revenue will start increasing. Even though the commission did not budget any sales-tax growth this year, Huckstep said it had hoped for enough growth to enable setting aside some money in a capital trust account.

Auditor H. Weldon Macke said it is difficult to figure sales-tax patterns because the money is collected by the Department of Revenue and disbursed to taxing entities on a monthly basis. He said there often is a discrepancy between months, and there is no way of determining whether it is a result of a decline in sales or a change in the collection cycle for the month.

In March 1990, Cape County's sales-tax check was $411,432, the largest ever. By comparison, the check received this week for March was $395,021, 4 percent less than a year ago.

Macke and Huckstep agreed the best way to measure sales-tax patterns is to look at several months at a time.

With receipts running $41,000 behind last year, Huckstep said the commission will carefully watch what happens in April.

"If we keep falling behind, we will eventually reach a point where we won't be able to catch up," said Huckstep. "If that happens, we're going to have to make some tough budget decisions."

Since Cape County implemented a sales tax in 1980, it has experienced revenue growth every year.