For most Missourians, the first of July brings plans and preparation to celebrate Independence Day - one of America's biggest holidays.
For all Missourians - and usually with much less fanfare and fireworks - July 1 also brings the beginning of a new state fiscal year and the start of a $27.4 billion spending plan that bankrolls every service and expenditure the state will make in the next 12 months.
The fiscal 2017 budget lawmakers approved - after vetoes by the governor - included $9.6 billion in general revenue, $9 billion in federal funds and $8.7 billion in other funds.
For Missouri, with a population of slightly more than 6 million, that budget package works out to around $4,500 per person. And, as the Show-Me State, it should come as no surprise that the skepticism of Missourians is evident in the careful safeguards the people have established to assure responsible management of the state's budget and finances.
How important is Missouri's state budget? Technically, it’s the only thing the Missouri General Assembly is required to do, by law. And, in Missouri, not a single penny can be spent - regardless of the source of the revenue - unless that expenditure is approved by the General Assembly through the appropriations process.
Occasionally, a news release may brag about lawmakers "meeting their constitutional responsibility" to balance the budget. There is no such constitutional requirement. What the news release probably refers to is passing a budget that matches the revenue estimates for the next year. Lawmakers can - and in the past have - appropriated more than they really expect the state to receive in revenue. Then, political hay was made when the governor of another party was forced to withhold funds when revenues fell short.
Formulating a budget is both art and science, and it’s a moving target based on estimates of revenue collections many months into the future.
While lawmakers can appropriate whatever they wish, the governor - through the Office of Administration, which authorized the allotments, and the state treasurer's office, which actually makes the fund disbursements - cannot release money if the revenues have not been received or if the disbursement was not authorized in the budget.
Anyone wishing to see this year's state budget can do so on the
Office of Administration website. Anyone may also check every monthly fund balance of the state on the
treasurer’s website. There are many, ranging from the budget reserve fund, which as of May 31 had $585.5 million for the Pansy Johnson-Travis Memorial State Gardens Trust. With $820,874, the trust established in 1985 is earning interest for 100 years and then will be used to establish a botanical garden in Maries County.
There's also some clever use of money, such as the state's abandoned funds, which had $35.5 million on May 31. These funds have been abandoned in bank accounts, safe deposit boxes or insurance policies. They belong to owners who can't be located. The money is used in the general revenue fund, but never actually escheat to the state. This allows the funds to be used until the owners of the property can be found. The state treasurer has staff looking for these owners. You can check to see if you have any money in this fund at the
treasurer's website.
The operating budget, by the way, makes up 13 different bills and is in effect for one year. The rest of the budget is for capital improvements and is a two-year budget.
Even before this year's budget took effect, the governor engaged in the annual withholding - typically 3 percent - of certain agencies until the end of this fiscal year to ensure that Missouri's finance are as solid as money in the bank - literally.
Mark Hughes is a former journalist and served as a nonpartisan policy analyst for the Missouri government, including the state Senate, treasurer's office and the utility-regulating Public Service Commission. He has been an observer and analyst of state government since the administration of Gov. Kit Bond. Hughes, who helps manage Missouri Digital News, can be reached at column@mdn.org.
