MISSOURI REVENUE CONTINUES TO SHOW INCREASES

Despite huge tax cuts in recent years, Missouri continues to haul in the dough.

For fiscal year 2000, which ended June 30, the state enjoyed a a 3.56 percent increase in total tax collections, including a roughly 4.3 percent increase for the general revenue fund, which provides the bulk of funding for state government agencies and programs.

The continued growth in tax collections is the result of a sustained period of strong economic times in Missouri. Although some members of the Legislature grumble about our status as a "low-tax" state and repeatedly warn of tight budget times ahead, Missouri continues to bring in more than enough revenue to pay the bills.

Gov. Mel Carnahan has signed a record $17 billion budget for fiscal 2001 that counts on continued increases in state revenue even though Missourians have seen some tax cuts in recent years.

Broad-based tax cuts forced by excessive state revenue for several years in a row have trimmed $650 million a year from state coffers. Add in other targeted tax cuts and tax credits, and that total rises to more than $800 million annually. But because state revenue is growing so fast, Missourians have received $972.7 million in taxpayer refunds over the last five fiscal years under the Hancock Amendment, which limits the rate of growth in state revenue.

Although one more round of refunds is coming this fall, state budget officials say the tax cuts have succeeded in slowing revenue growth and this year's refunds are likely to be the last for the foreseeable future.

State Budget Director Mark Ward says that the growth in tax collections is somewhat misleading and that, after regular income-tax refunds are returned to taxpayers, net growth in general revenue totals only one-tenth of one percent.

Still, many Missourians are still wondering why more tax cuts aren't being made. And if the state is so well off, why isn't more money being put away in a rainy-day fund for future years when the economy might not be so rosy or an emergency requires a huge amount of state funding?

If the economy ever sours, it will be too late to plan for any kind of state revenue cushion.