Over the past decade, revenue pouring into Jefferson City in the form of tax receipts and other sources of state income has soared. And -- this comes as no surprise -- so has state spending. Overall, the 10-year increase in spending by Missouri state government has gone up 121 percent, far exceeding inflation.
As with most governmental entities, spending is based on how much is taken in. In some cases, provisions are made for reserve funds that could be used in the event of an emergency. School districts in the state, for example, are required to keep a minimum of 10 percent of annual spending in reserve. The Cape Girardeau School District and other districts in the state has slipped below that level and are having to make adjustments. Cape Girardeau County is one of the most well-off counties in the state, financially speaking. It has healthy reserves that have been set aside by prudent commissioners who want to be ready if a major need arises.
But the state doesn't have any requirement to set aside money, even though there is talk of a so-called rainy-day fund from time to time. Even in these boom times, Missouri's elected officials haven't seen fit to prepare for the day when the economy isn't quite so good or when a major disaster forces the state to come up with a lot of money very quickly.
Instead, Missouri has looked -- and certainly found -- ways to spend and then spend some more. And the hefty check writing in Jefferson City would be even higher, except Missourians were wise enough to pass a lid on the growth in state revenue several years ago called the Hancock Amendment. Thanks to that amendment, Missourians this year have received their first-ever refund in income-tax overpayments. Other refunds are due to follow.
In the 1989 fiscal year, Missouri spent a record-breaking $7.1 billion. For the 1999 fiscal year that begins July 1 this year, Gov. Mel Carnahan's spending proposal is $15.7 billion
One of the biggest spenders in state government is the Department of Social Services. Its proposed budget is $4 billion, which is more that the total state budget of just 14 years ago.
Spending for public debt is another area that has increased significantly: $211.6 million in the next fiscal year, up from $154.5 million 10 years ago.
There are many reasons for the huge increases in spending by state government. One reason has been the construction of several prisons to house an ever-increasing number of inmates, thanks to tougher sentencing and more mandatory prison terms for a variety of offense. Social services continue to cost the state more and more, despite welfare reform and efforts to move more people into the work place.
But the spending spree in Missouri has basically gone unchecked, except for the Hancock lid, while many other states have been able to hold down the pace and lower taxes significantly. Aside from the elimination of the state sales tax on food last year in order to stay under the Hancock limit, Missourians have had tax increases, further fueling the flow into state coffers -- and more opportunity to spend.
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