Missouri's finances may be worse than projected

JEFFERSON CITY, Mo. (AP) -- Missouri's finances could turn out worse than expected because of the continued economic recession.

State officials in January estimated that Missouri's general revenue would decline by 4 percent during the 2009 fiscal year that ends June 30, then grow by 1 percent next year.

But the governor's budget director, Linda Luebbering, says Missouri will be fortunate if revenue don't fall by more than 4 percent this year. And she says next year's projected 1 percent growth may be too optimistic.

Luebbering updated lawmakers Monday about the state's finances as the House Budget Committee was considering how to spend Missouri's share of the federal economic stimulus funds.

The gloomy numbers do not take into account the federal money.