DOWNTURN IN SALES TAX IS NO REASON TO PANIC

For years, Cape Girardeau and surrounding counties have experienced healthy growth in sales tax revenue. But now that growth has slowed and in some cases declined. This trend has caused a natural concern to local governments that in many cases depend greatly on sales tax revenue to operate.

But there's no call for panic. The fact is the nation is in the midst of a recession. We will weather this storm, and with fiscal conservatism, local city and county budgets will survive.

In Cape Girardeau County, collections were just $8,762 above 1990. That represents a paltry increase of about .28 percent. While collections from the half-cent sales tax weren't down, they were much lower than years' past. Growth was never less than 4 percent in the past decade, and in three of the years, revenues grew better than 9 percent. Overall, sales tax receipts totaled $3,067,949 in Cape Girardeau County for 1991.

The city of Cape Girardeau experienced nearly a 1 percent drop on its 1991 collections. It marked the first time in nearly 20 years that annual receipts from its one-cent sales tax declined from the previous year.

In contrast, the city of Jackson experienced a 8.4 percent increase in sales tax revenues from $742,502 in 1990 to $804,706 in 1991. In light of Cape city's downturn, Jackson's increase saved the county from a net sales tax loss. That's certainly a plus.

Cape Girardeau County was not alone in this sales tax trend. Few counties in the region reported booming sales last year. Butler County experienced the greatest growth, but that could be attributed to a new Wal-Mart Supercenter and repeal of the blue law about a year and a half ago.

Butler County sales tax revenues grew by $89,000 this year. Sales tax revenue totaled more than $1.48 million. Perry County reported a $25,000 increase over last year, with sales tax revenue totaling more than $595,000 this year.

But other counties reported decreases. Sales tax revenue was down by about $28,000 in Scott County, $23,000 in New Madrid County and $18,448 in Stoddard County.

The flat sales tax revenue is disappointing, but not a catastrophe. That's because Cape Girardeau city and county officials have exhibited fiscal responsibility and have watched the situation closely. Local officials have planned budgets based on actual figures not simply anticipating revenues that never materialized.

Because of the expected downturn, the Cape Girardeau County budget in 1991 was based on no sales tax growth. In previous years, a growth rate of 3-4 percent was built into budget projections. Because of good management in the past, Cape Girardeau County and city have balances in which to fall back on.

There are many positive signs in the community that indicate retail sales will pick up in the near future. New stores have opened, and others are under construction. The county's diversified economic base is also an advantage. When one sector falters, another can make up the difference.

In this holiday season, it is appropriate to look ahead with hope toward an improved economy instead of wrapping ourselves in despair.