An Unexpected Increase in Income for Missouri
Missouri ended 2014 with more state income than lawmakers anticipated. According to St. Louis Public Radio, “State income – primarily taxes — rose 10.7 percent in December, compared to the same period a year ago” (Source).
As a result, the state has just a bit more money to work with in the first half of the fiscal year than lawmakers expected. Overall revenue is up 5.1 percent, which equates to an additional $190 million in general revenue funds compared to the same window of time in 2013.
The majority of the state’s increased revenues came through individual income taxes, sales and use tax collections, corporate income taxes, and corporate franchise tax collections.
We aren’t sure yet what, exactly, this means for public schools. Hopefully the increase will mean that Governor Nixon isn’t forced to make budget withholds during the rest of this fiscal year to keep the state’s budged balanced, but it’s too early to be sure.
Our best hope? That some the state’s unexpected income increase can prevent budget cuts for the more than half-a-million Missouri students whose funding could be reduced if the Foundation Formula doesn’t reach full funding in 2015.
Learn more: Missouri Law Will Reduce Funding for More than 630,000 Public School Students.
The First Regular Session of the 98th General Assembly just began in Jefferson City. We’ll continue to share information about activity in the legislature that affects public schools. Bookmark the Missouri Parent Blog and follow us on Facebook and Twitter to learn more about education funding and policy in the state of Missouri.
Posted on Mon, January 19, 2015
by MOParent filed under