Thursday, July 3, 2008
For Immediate Release

Contact: Larry Schepker
573-751-1851

State Releases Fiscal Year End 2008 General Revenue Report

JEFFERSON CITY - Commissioner of Administration Larry Schepker announced today that the state’s 2008 fiscal year net general revenue collections grew by 3.7 percent compared to fiscal year 2007, from $7.72 billion last year to $8.00 billion this year.  Net general revenue collections for June 2008 increased 4.5 percent compared to those for June 2007.

Missouri's budget situation remains strong under Governor Blunt's administration at a time when the Center for Budget and Policy Priorities is reporting that 29 other states face revenue shortfalls in their coming budgets totaling $48 billion.

GROSS COLLECTIONS BY TAX TYPE

Sales and use tax collections

• Decreased 2.1 percent for the year, from $2.04 billion last year to $2.00 billion this year.
• Increased 3.8 percent for the month.

Individual income tax collections

• Increased 6.7 percent for the year, from $5.73 billion last year to $6.11 billion this year.
• Increased 4.8 percent for the month.

Corporate income and corporate franchise tax collections

• Decreased 2.9 percent for the year, from $631.7 million last year to $613.5 million this year.
• Decreased 12.4 percent for the month.

All other collections

• Increased 2.7 percent for the year, from $523.9 million last year to $538.1 million this year.
• Increased 7.5 percent for the month.

Refunds

• Increased 4.1 percent for the year, from $1.21 billion last year to $1.26 billion this year.
• Decreased 14.5 percent for the month.

Schepker noted that the financial strength of the state’s revenues continues to be strong.  Net general revenue growth for the fiscal year just ended on June 30 was 3.7 percent which exceeds the revised Consensus Revenue Estimate of 3.1 percent for the year.   The surplus of approximately $50 million in receipts over expenditures adds to the state’s ending balance from the previous year and will be carried over for use in future budgets.

Due to the state’s strong financial management policies, state agencies lapsed an estimated $288 million of general revenue that was appropriated but not expended over the last 12 months.  For comparison, the average lapse over a given fiscal year is expected to be about $150 million.  This year, under the governor’s direction, state agencies saved nearly two times that amount. 

This 2008 year-end report marks the third year in a row that under Governor Blunt’s leadership, the state has ended with a positive balance.  This poses a sharp contract to the $1.1 billion deficit that Governor Blunt inherited when he came to office in 2005.

In April, the National Conference of State Legislatures reported that Missouri is one of only 13 states projecting stable or optimistic revenue outlooks for 2009.  According to a June 2008 fiscal survey conducted by the National Association of State Budget Officers, Missouri is one of only 15 states currently projecting higher revenues than estimated for Fiscal Year 2008.  In fact, they project that 20 other states expect lower revenues. 

Schepker remains optimistic that revenue growth will not decline in fiscal year 2009, but national economic trends are concerning.  The state budget office will carefully monitor these trends of revenues and expenditures to maintain balance.

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