State director projects balanced budget despite revenue hit from tax cuts

Missouri Budget Director Dan Haug said the state’s general-revenue income will be enough to balance the budget for the current fiscal year, which runs through June. However, he said state and federal tax cuts that took effect in January will reduce the state’s income by $218 million for the calendar year.

General revenue makes up about one-third of the state’s budget, but it pays for most of the state’s programs. The rest of the state’s budget is either federal money, or dedicated sources funds over which state lawmakers have little control.

Of the $218 million in expected revenue declines, $160 million is attributable to a reduction in the state income tax approved in 2014. The other $58 million is a result of federal tax cuts approved in December.

Read more: St. Louis Public Radio

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