Gov. Eric Greitens and fellow Republican budget leaders in the Missouri Legislature on Tuesday said they’re projecting the state will bring in roughly $200 million less than initially expected this fiscal year, and they’re planning on modest 2.5 percent revenue growth next year.
The state is also slashing in half the consensus revenue estimate for the current year, dropping the current revenue-growth projection for fiscal 2018 to 1.9 percent, which is about half of what lawmakers were banking on when they passed this year’s budget. The state fiscal year spans from July to June each year.
State Budget director Dan Haug said the roughly $250 million in cuts already made by Greitens likely make up for the drop in projected growth, and he said any further, significant cuts probably won’t be needed.
Haug said a Missouri income tax cut that took effect this year accounts for about an $80 million loss, and federal tax-law changes are expected to bring a $29 million hit.
Haug said expectations for next fiscal year show a “relatively strong economy.”
Greitens has not unveiled his budget proposal for next fiscal year.