May revenue down; collections still up for year

JEFFERSON CITY, Mo. -- Net state revenue was up 3.2 percent through the first 11 months of Missouri's fiscal year, putting the state budget on track to meet expectations, the state budget director said Monday.

For May alone, net general revenue fell 14.1 percent compared with May 2003, according to the Department of Revenue. But budget director Linda Luebbering said the dip was due to the state paying more tax refunds this May, whereas many tax refunds weren't completed until June in 2003.

By the June 30 end of the 2004 fiscal year, those tax refund figures should even out, she said.

The 3.2 percent year-to-date growth in tax revenues excludes a one-time $95 million grant from the federal government. With the federal payment, the increase is 4.9 percent.

The year-to-date growth is not as high as the 5.7 percent annual revenue increase recently projected for the current fiscal year, but Luebbering said she expected the budget for the current and the next fiscal year to hold up.

"It wasn't a terrific month of growth, but it's not bad," Luebbering said. "We're right on track for hitting our revised estimate. We don't see any need to panic because May didn't look very good."

Senate Budget Committee chairman John Russell also said the long-term revenue figures were in line with what the current and future state budget require.

"I think it still looks good for '05 because the economy does seem to be improving," said Russell, R-Lebanon. "I think we're on the right direction. Assuming we can stay on that course, '05 ought to look real good."

For the year to date, the state has collected $4.2 billion in individual income taxes, up 5.2 percent from last year. The monthly figure, $332.8 million, was up 2.7 percent.

Individual income taxes comprise about 60 percent of the state's general revenues, with about 25 percent coming from state sales and use taxes.

Sales and use tax collections increased 8 percent compared with May 2003. For the year to date, sales tax revenues are up 5.7 percent, to $1.74 billion.

The state paid out $170 million in income tax refunds to individuals for the month, an 86 percent increase from a year ago, and about $1 billion for the year to date, a 16 percent increase.

Corporate tax collections were down about 30 percent for the month but remained above last year's totals.

The Legislature passed a nearly $18.9 billion state budget for the fiscal year that starts July 1, and Gov. Bob Holden is expected to sign it. That budget is based on a 4 percent to 4.5 percent general revenue growth, compared with the current year.

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On the Net:

Revenue Department: http://www.dor.mo.gov