Missouri faces projected $342M revenue shortfall

A review of the current state budget shows Missouri is on pace to come in $342 million short for fiscal 2009, according to the office of Gov.-elect Jay Nixon.

Nixon asked former Sen. Wayne Goode, D-St. Louis County, and Rep. Margaret Donnelly, D-Richmond Heights, to examine fiscal data and update state budget estimates.

The budget passed in May calls for $8.94 billion in expenditures compared to $8.23 billion in estimated general revenue. The state expected to cover the $709 million difference with other sources including tobacco settlement receipts and unappropriated funds from previous years, which would have left the state with a $281 million surplus.

But general revenue is well below initial projections due to the national economic recession; new projections leave the state with a $342 million shortage.

"The national economic crisis has hit Missouri hard, and we now face significant economic challenges," Goode said in a news release. "Surpluses that may have once existed are now gone. Revenue is down, unemployment is up, and it's clear that the state's economic situation will get worse before it gets better."

The problem is illustrated by November's general revenue report, released Tuesday. Net general revenue collections so far for fiscal 2009, which began July 1, are $2.93 billion, down 3.9 percent from last year. For November, net general revenue was $522 million, down 15 percent from November 2007.

State and community leaders will be in Springfield Wednesday afternoon to discuss the budget issues, as well as funding problems for future infrastructure, health care and education needs. The summit begins at 3 p.m. at Springfield Area Chamber of Commerce, 202 S. John Q. Hammons Parkway, and is open to the public.

See SBJ's Dec. 8 issue for more on the state's budget issues.[[In-content Ad]]