Despite an income downturn in July, Missouri’s budget director Dan Haug said the state is entering the fiscal year in stronger financial shape than it’s seen in years.
That’s because Missouri’s past fiscal year ended with a last-minute $350 million surplus, which Haug said is softening the impact from the approximately $220 million in annual income loss Missouri faces from state and federal tax cuts.
In July, Missouri’s income dropped 5.3 percent compared to July 2017, largely due to an almost 9 percent decline in state revenue from individual income taxes.
Haug said his office will only be concerned if the income tax decline continues for several more months. Individual income taxes provide about 75 percent of Missouri’s general revenue.
State sales-tax income was up almost 10 percent in July, compared to the previous year.
Read more: St. Louis Public Radio