State revenue up for month, year

JEFFERSON CITY, Mo. -- The state's net general revenues rose 9.7 percent in February, helped along by a mild winter, the Office of Administration said Friday.

Through the first eight months of the fiscal year, which ends June 30, net revenues were up 6.1 percent to total $4.44 billion, compared with $4.19 billion the previous year, the agency said.

Office of Administration commissioner Mike Keathley said the warmer weather helped the state's economy, both by keeping people working in areas such as construction and by holding down what consumers had to pay to heat their homes.

"We should not underestimate the impact of what the mild winter has done," he said.

Keathley said the national economy should continue to grow in coming months but added that concerns remain over energy prices and inflation.

The growth remains above the amount state leaders expected -- a rate of 4.9 percent -- through June 30. Keathley said he hopes the state will stay ahead of that rate.

Last year, the state had cash flow troubles, forcing it to delay payments to hospitals and universities to keep the books balanced. This year, Keathley said, strong revenue collections should make such delays unnecessary.

"Continued growth in our state's general revenue collections reflect responsible budgeting decisions and legislative reforms that have paved the way for good economic growth in our state," Gov. Matt Blunt said in a written statement.

Individual income tax collections were up 8.4 percent for the year so far, from $2.89 billion to $3.13 billion, and 8.2 percent for February. Individual income tax collections account for about 65 percent of the money the state brings in.

Sales tax collections rose 2.3 percent for the year, to $1.33 billion, and 5.6 percent for the month. Sales taxes make up about 25 percent of the money the state collects.

Corporate income tax collections, meanwhile, were up 38.6 percent for the year, at $332.3 million, but fell 6.4 percent for the month.

Tax refunds were up 20.1 percent compared with this time last year, from $513.7 million to $616.9 million. More than $210 million in individual refunds was returned last month -- believed to be the largest total in a single month, Keathley said. He attributed the high number to hard work by revenue employees and faster processing thanks to a jump in electronic filers.