State revenue up by more than 6 percent

JEFFERSON CITY, Mo. -- The state's financial picture is off to a good start, with the Office of Administration announcing Wednesday that net revenue has increased more than 6 percent in the first two months of the state's fiscal year. Net state revenue increased from $1.04 billion to $1.1 billion through August, the office said. State revenue minus refunds for August was $649.7 million, up 7.1 percent from August 2005. Administration commissioner Mike Keathley said Missouri's economy continues to be strong despite high energy and gas costs in recent months. But he also cautioned that on a national scale, the economy is expected to slow in coming months.

Sales tax collections, which account for about one-third of the state's revenue collections, increased less than 1 percent for the month and the year. But individual income tax collections -- which make up the biggest share of state collections, about 57 percent last month -- increased 3.2 percent in August. For the fiscal year so far, income tax collections rose 4.8 percent, to $701.5 million.

Corporate income tax collections fell 16 percent for the year-to-date to $39 million, but were up nearly 35 percent for the month.