State announces $45M in additional spending cuts

Actual state revenue collections continue to lag behind expectations, forcing state leaders to cut additional spending from this year's budget.

The state budget office announced Thursday that an additional $45 million is being cut from state programs, bringing the total spending restrictions for the year to more than $900 million.

The reason for the cuts: Net collections for April are down 19 percent through April 20, with year-to-date collections down 13.8 percent so far for the fiscal year. April, according to the release, is a key month for state revenue. Average income tax refunds are up 8 percent, while average payments are down 30 percent.

The impact of income tax numbers compounds an already gloomy situation in individual withholding and sales tax collection; withholding has declined for five straight quarters, while sales tax is down for the last 10 quarters.

Among the new restrictions:

• $8 million of additional withholding from the Missouri Department of Transportation, bringing the total restriction to $12 million;

• $8.5 million cut from the state's Other Post-Employment Benefits, or OPEB, program, bringing the total cut to $30.6 million;

• $4.9 million in cuts to the Parents as Teachers program, bringing the total to $7 million;

• $3.2 million from the state biodiesel program, bringing total cuts to $7.1 million; and

• $4 million in cuts from the state Metro Transit Funding program.

Funding issues also continue at the city level. Springfield City Manager Greg Burris told Springfield City Council at its April 19 meeting that he would be recommending additional spending restrictions in the next few weeks.

The city's general sales tax collections are down 8 percent during the first 10 months of the fiscal year, and the city has made spending cuts each quarter in this fiscal year, which began July 1.[[In-content Ad]]