x
Breaking News
More () »

Missouri governor, lawmakers brace for tighter budget

Parson and legislative budget leaders predict Missouri will collect about $9.78 billion in revenue next fiscal year, which begins in July
Credit: UPI
Missouri Governor Mike Parson prepares to sign HB 66, allowing first responders to live outside of city limits, in St. Louis on Thursday, October 8, 2020. Parson, who is just back to work following testing positive for COVID-19, signed the legislation that has been in effect since 1973. Photo by Bill Greenblatt/UPI

JEFFERSON CITY, Mo. — Gov. Mike Parson and top Republican lawmakers on Thursday said they're expecting Missouri to bring in less money next year as the state continues to fight the coronavirus pandemic.

Parson and legislative budget leaders predict Missouri will collect about $9.78 billion in revenue next fiscal year, which begins in July. That’s about $200 million less than the $9.98 billion that officials previously planned on collecting this year.

Parson in a statement said the pandemic has had “an overwhelming impact on our economy, but we are already making a strong recovery and remain optimistic for the coming year.”

The governor and lawmakers use revenue estimates as a guide to help craft balanced budgets.

Parson also said his administration and the Legislature revised their earlier revenue estimates for this year.

Instead of $9.98 billion, officials now predict Missouri will collect closer to $10.2 billion this year. But that’s artificially high because the government gave taxpayers the option to delay filing until much later this year, meaning some waited until what's technically a new fiscal year in Missouri.

In effect, that means Missouri collected less last fiscal year but got a delayed bump in tax revenue this year.

Parson will propose what likely will be a slimmer state spending plan when lawmakers return to the Capitol in January.

OTHER STORIES

RELATED: 'A ray of hope' | Task force leader says vaccine is good news, but months of hard work still needed

RELATED: If FDA approves COVID-19 vaccines, Missouri will start them next week