Missouri auditor to focus on reasons for budget shortfalls

JEFFERSON CITY, Mo. -- Missouri Auditor Nicole Galloway is launching a series of audits looking into the reasons the state is facing a budget shortfall.

Galloway said some of the audits will focus on state tax credits and exemptions that reduce the amount of revenue Missouri receives from income and sales taxes.

Galloway on Thursday told members of The Associated Press and Missouri Press Association poor financial projections for legislation have caused some of the problems. She said legislative projections for a recent change in how some businesses can calculate taxes were off by 770 percent, resulting in millions of dollars less in taxes than expected.

Galloway said other audits will look at federal and state revenue, the timeliness of issuing tax refunds and Missouri's economic rankings.