Despite a recent round of more than $57 million in budget restrictions, Gov. Jay Nixon says Missouri is doing well financially, noting job growth in the state.
House budget committee vice chairman Scott Fitzpatrick (R-Shell Knob) agrees that the state is financially sound, but he says if policy involving social services programs like Medicaid does not improve soon, difficult decisions must be made.
In this fiscal year’s budget passed by the legislature and signed by Nixon, Missouri’s $27 billion budget includes more than $9.2 billion for the Department of Social Services.
The legislature overturned this week the Governor’s veto of two bills: One that creates an income tax deduction for farmers who receive federal disaster or emergency aid; and another that will exempt businesses from paying sales tax for recreational classes they provide, such as yoga and gymnastics.
Nixon says the federal disaster relief bill will lead to an estimated $50 million budget shortfall because the tax deductions can go back to January 2014. A University of Missouri study says the maximum tax loss to the state would be $19.1 million.
The Department of Revenue also projects a revenue decline of $8 million this fiscal year due to the recreational class sales tax measure.
Read more: Missourinet