State revenue up in April

General revenue collections compared to 2004 fiscal year-to-date collections increased by 4.3 percent, excluding the $95.1 million received from the U.S. Treasury pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Collections net of refunds totaled $5.52 billion so far this year, up 3.9 percent from last year. The majority of the increase came from collections of individual income tax, corporate income tax and corporate franchise tax.

Year-to-date individual income tax collections increased from $3.85 billion last year to $4.07 billion this year, an increase of 5.8 percent.

Year-to-date corporate income and corporate franchise tax collections increased from $346.5 million last year to $378.4 million this year, an increase of 9.2 percent.

Year-to-date sales and use tax collections rose from $1.56 billion last year to $1.59 billion this year.

All other collections were up 7.5 percent for the month, but down 5.8 percent year-to-date, from $408.3 million last year to $384.7 million this year.

Tom Kruckemeyer, director of fiscal policy and chief economist for the nonpartisan Missouri Budget Project, said the improvement could help, but it might not be enough.

“A larger than expected surge in individual income tax payments in April has vastly improved the near-term outlook for the state to avoid a year-end deficit,” Kruckemeyer said in a news release. “(But) although the economy has improved modestly, the current growth rate will not restore Missouri’s ability to adequately fund basic state services.”

MBP’s analysis also shows that the revenue situation for fiscal year 2006, which begins July 1, 2005, “remains cloudy, with the continued sluggish growth in individual income tax withholding and in sales and use tax,” Kruckemeyer said.

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