State Budgets 2012: Missouri
To see more state budget news and information, visit State Budgets 2012.
- Fiscal Year Begins: July
- Frequency of Legislative Cycle: Annual
- Legislative Session for 2012: Convened January 4, 2012
- Frequency of Budget Cycle: Annual, Biennial
Learn more from the National Association of State Budget Officers
Budget News and Information: 2012
6/6/12: State tax revenue exceeds projections
Missouri's tax revenue is running a little ahead of projections heading into the final month of the state budget year.
Figures released yesterday by the state Office of Administration show general revenue is up 3.4 percent compared to 2011. That's ahead of the projected 2.7 percent growth.
Read more: Columbia Daily Tribune
5/2/12: Missouri budget faces contentious conference process
Funding for health services for the blind, education and child care are among the big ticket items for negotiators assigned to work on the $24 billion Fiscal 2013 state budget. A committee of House and Senate members will begin that work this week in an effort to bridge a multi-million difference between the two chambers’ proposed spending plans. The Senate’s proposed budget spends $60 million less than the House’s budget. That is because the House included $70 million in anticipated revenue from a tax amnesty plan in its Fiscal 2013 budget.
Read More: News-Leader
3/26/12: Budget proposal in Missouri House would eliminate aid for the blind
Missouri's Supplemental Aid to the Blind program pays for medical care for about 2,800 people who earn more than $9,495 a year — and therefore don’t qualify for Medicaid — but also receive monthly payments from the state’s blind pension fund. But in the $24 billion budget passed Thursday by the Missouri House, the $28 million health care program for the blind was eliminated. The money instead was used to avoid another year of cuts to higher education.Rep. Ryan Silvey, chairman of the House Budget Committee, has reportedly said that in a tight budget the state can no longer afford to provide blind residents medical aid that people who are deaf or paralyzed do not receive.
At 17 cents per pack, Missouri has the nation's lowest cigarette tax. State Rep. Jeanette Mott is now pushing to raise Missouri's tobacco tax to $1.095 – still below the national average of $1.46 per pack. The hike would have to be approved by a vote of the people.Earlier this year, GOP leaders in the House and Senate dismissed the idea of raising cigarette taxes, and Democratic Gov. Jay Nixon has pledged not to raise taxes.
Read more: St. Louis Post-Dispatch
3/21/12: Missouri budget passes first hurdle
The full Missouri House of Representatives on Tuesday gave initial approval to a $24 billion budget after again debating the plan to increase higher education funding by cutting health care for disabled Missourians.Floor debate on the 13 bills that make up the fiscal 2013 budget started with Democrats and Republicans trading barbs over spending priorities and offering amendments to the spending plan. House members must vote one more time on the package of bills before it can clear the chamber. Much of the disagreement between the two parties centered upon a plan that provides more than $60 million for higher education by cutting other state funds. One of the largest is $28 million used to provide basic health care services for blind Missourians.
Read more: The News-Leader
3/12/12: State may see less savings from corrections overhaul
The Missouri House and Senate have both passed plans this past week to overhaul the state’s probation and parole systems, but those plans may not end up saving the state as much money as originally thought. The plans, approved by wide margins in both chambers this past week, would give non-violent parolees or probationers an additional 30 days of credit toward their sentence for every month they go without a violation. In a much-publicized December report, the working group unveiled several policy suggestions, mostly aimed at cutting spending on probation and parole violators. A legislative working group found that 71 percent of admissions to the state’s prisons in 2010 were people charged with violating probation or parole. The group said its proposals could have saved the state between $7.7 million and $16 million by 2017. But financial estimates included with the legislation implementing those suggestions say the state would likely see a net savings of less than $1 million over the next five years.
Read More: The News Tribune
3/12/12: Schools waiting for lawmakers’ decisions
Twice in the last two months, Jefferson City’s school board has been told that next year’s district operating budget can’t be finished until the Missouri Legislature answers some questions.
“Right now, we’re basing this (budget prediction) on the worst case — that we’re going to lose $1.2 million in state aid,” Chief Financial Officer Jason Hoffman told the board Thursday night. Last month, he had explained how the 2005 law creating a new state-aid formula was “designed to be phased-in over seven years and fully-funded by next year. It required about $120 million (in additional dollars) each year for the phase-in.”
Read More: The News Tribune
3/9/12: Mo. House budget panel endorses spending plan
Missouri House budget writers reversed Gov. Jay Nixon's proposed cuts to public colleges and universities Wednesday while sharply trimming aid for the blind in a $24 billion budget plan for next year.
Read More: The Rolla Daily News
Budget News and Information: Previous Budget Cycles
5/9/11: MoDOT slashes proposed budget in half
Faced with a severe decline in funding and the inability to match federal funds in the near future, Missouri Department of Transportation (MoDOT) Director Kevin Keith presented a plan last week to the Missouri Highways and Transportation Commission. It includes reducing the size of the department's staff by 1,200, closing 135 facilities and selling more than 740 pieces of equipment. By 2015, the proposed direction will save $512 million that will be used for vital road and bridge projects.
5/6/11: Missouri lawmakers pass $23B budget for next year
The Missouri Legislature gave final approval Thursday to a budget that cuts funding for colleges and universities and holds basic aid flat for public K-12 schools, an outcome that some lawmakers acknowledged was inadequate but defended as the best they could do given the state's finances. The $23.2 billion operating budget for next year now goes to Gov. Jay Nixon, who can veto or reduce expenditures but cannot add to them. Nixon said Thursday that the budget appears to spend at least $30 million more than he expects the state to receive in revenues and warned that he may have to make cuts.
4/20/11: Missouri Senate passes bill that keeps basic school aid unchanged
Missouri’s next state budget breezed past another milestone Wednesday, passing through the Senate with wide support. The $23.2 billion spending plan, which already had passed the House, keeps basic school aid the same as last year’s budget. Lawmakers from both chambers now will come together to work out minor differences before holding final votes to send the budget to Gov. Jay Nixon by the May 6 deadline.
4/20/11: Missouri Senate backs 4.8 percent cut to colleges
Missouri’s public colleges anbudget plan passed d universities would take a 4.8 percent funding cut next year under a by the state Senate. The reduction approved Wednesday is less than the 7 percent cut originally proposed by Gov. Jay Nixon and passed by the House. That means the two chambers must reconcile their differences before sending a final budget plan to the governor.
4/18/11: Director: MoDOT will lack match for federal funds by 2017
Missouri Department of Transportation Director Kevin Keith said his agency already is in maintenance mode, and the state eventually may have to turn down more than $450 million in federal funds due to the lack of matching dollars. "We had an annual budget of $1.2 billion, and now it's down to $600 million," Keith said. "In year 2015 or 2016 we may have a problem. We know that by 2017 we cannot match federal funds," Keith said.
4/16/11: Education funding tied up in Senate filibuster
When lawmakers approved an overhaul of Missouri’s public education funding formula in 2005, they never though that just six years later they would have to alter the plan again. But they also didn’t expect revenues to decline so sharply during those years as the state and the nation suffered through one of the greatest economic recessions in history. Now legislators are locked in debate over how to modify that plan to suit the new reality.
4/12/11: Missouri to lay off 64 juvenile detention workers
Six juvenile detention facilities could close in Missouri under a plan to lay off 64 employees. The decision announced Tuesday by the state circuit courts budget committee will take effect next January. It will affect facilities in Bolivar, Cape Girardeau, Poplar Bluff, Sedalia, Union and Warrensburg. The state judiciary says those facilities hold an average of four or fewer juveniles each day who are waiting for their cases to be decided. Plans call for juveniles to be held in facilities in nearby counties or diverted to other oversight methods.
4/12/11: Child-care subsidies reduced in Missouri Senate plan
Thousands of low-income Missouri parents would see their state child care subsidies reduced under a budget plan a state Senate committee passed Tuesday. The plan would reduce monthly child-care subsidies for about 6,600 children while extending benefits to an estimated 570 children whose parents currently earn too much to qualify for state-subsidized care. The changes would save about $1 million in the proposed $23 billion operating budget for next year approved by the Senate Appropriations Committee. But the panel chairman, Sen. Kurt Schaefer, said the greater goal is to provide a less-abrupt phase-out of benefits for working parents who get promotions and pay raises.
4/10/11: Missouri lawmakers consider 75-cent cellphone tax
Cities and counties would be able to charge a monthly tax on cellphone service if local voters approve, under legislation sponsored by a few Missouri lawmakers. The measure pending before a House committee would let local governments add a charge of up to 75 cents to cellphone users’ monthly bills to pay for local 911 call-center operations.
4/8/11: Senate endorses extension of jobless benefits
Thousands of Missouri residents cut off of federally funded jobless benefits soon could regain eligibility under a plan embraced Thursday by the state Senate — but their gain could come at the expense of people laid off in the future.
4/6/11: Bill to eliminate franchise tax goes to Missouri governor
The House on Wednesday passed a bill 105-51 phasing out the tax over five years by gradually reducing the rate at which businesses are taxed. The measure passed the Senate in February and the House approved it without changes, moving it on to the governor.
4/6/11: Missouri senator delays vote on health tax extensions
A Missouri senator pushing for broader changes to the health care system has delayed a vote on legislation needed to secure about $3 billion annually for the state’s Medicaid program. At issue is legislation extending for five years a series of special health care taxes that are scheduled to expire Sept. 30. The taxes on hospitals, nursing homes, pharmacists and others are used to draw down federal Medicaid money that is then paid to those health care providers through various programs.
3/31/11: Missouri to drop extended benefits for unemployed
Thousands of people in Missouri who have been unemployed for more than a year soon will lose their jobless benefits, marking a significant victory for Republican fiscal hawks who are crusading against government spending. When eligibility ends Saturday, Missouri will become the only state to voluntarily quit a federal stimulus program that offers extended benefits. Michigan, Arkansas and Florida also recently took steps to cut back on money going to the unemployed, although they targeted state benefits instead.
3/30/11: Missouri House gives final passage to state budget
The Missouri House of Representatives Wednesday gave final approval to the state's $23.2 billion budget for fiscal year 2012. After about five hours of budget floor debate over the previous two days, it took representatives about two and a half hours to wade through final details and take roll call votes on the 13 bills that make up the state's spending plan.
The budget is about $700 million dollars less than the last fiscal year's spending plan with most of the cuts coming due to slow revenue growth and the end of several federal stimulus funding streams.
3/30/11: Labor investigators slashed after Missouri House approved new budget cuts
The Missouri House approved a new budget with many painful cuts – one of which would deal a huge blow to the Department of Labor. The cuts would get rid of all the investigators who look into child labor and minimum wage complaints. Lawmakers in Jefferson City plan to slash all nine Missouri labor investigators. Those investigators primarily investigate suspected violations in three areas: child labor laws, minimum wages and prevailing wages.
3/29/11: Missouri House advances $23B operating budget
Missouri House members gave first-round approval Tuesday to a more than $23 billion state operating budget that holds K-12 education spending steady, trims public university budgets and restricts the governor’s ability to travel on the state’s dime. The House cut budgets for public colleges and universities by about 7 percent and approved spending slightly more than $3 billion in basic aid for public schools — the same amount of money that districts are to receive this year but more than $200 million less than what a state funding formula says should go to schools next year. Meanwhile, state transportation aid that helps schools pay for busing would remain largely unchanged from what districts received this year, though only about two-thirds of what the Legislature actually budgeted before midyear spending cuts.
3/29/11: Nixon: Missouri to apply for high-speed rail funds
Now that Florida has turned down $2.4 billion in federal funding for high-speed rail service, Missouri is among the states going after that money. Gov. Jay Nixon was at an Amtrak station in Kirkwood on Tuesday to announce that Missouri will apply for nearly $1 billion in funding for high-speed rail service between St. Louis and Kansas City. The money is up for grabs because Florida’s new Republican governor, Rick Scott, rejected plans for a high-speed line from Orlando to Tampa out of concern that the state couldn’t afford future operating costs. Nixon, a Democrat, said going after the money makes economic sense, noting that Missouri has a chance to obtain nearly $1 billion with only a $4.5 million state match.
3/25/11: Auditor: Stimulus tracking inadequate
Several Missouri government agencies failed to monitor their use of the 2009 federal stimulus dollars as well as they should have, state Auditor Tom Schweich said Thursday. “We found problems with the reporting process in four departments,” Schweich said at a Capitol news conference. “They had not put in place adequate procedures to monitor compliance with ARRA,” the federal law authorizing the stimulus program.
3/22/11: Missouri faces highway funding shortfall
Missouri is nearing a crisis in highway funding and may have to turn away hundreds of millions of federal dollars unless it comes up with more of its own money for roads, the state's transportation director said Monday. Missouri's highway construction budget already has plunged from nearly $1.2 billion last year to $662 million this year as federal stimulus money expires and the state pays the tab for a burst of bond-financed highway projects built during the past decade.
3/21/11: Missouri Senate leader looking for $500 million in savings
Missouri Senate President Pro-Tem Rob Mayer says he is looking for around $500 million of savings in the state budget over the next several years.
3/20/11: Missouri bill would reduce property taxes for sawmills
Taxes could be sliced significantly for Missouri's sawmills, but it could come at the expense of some public school districts. Legislation that has passed the Missouri House and Senate in different versions would reclassify sawmills as agricultural property. That would mean they would be assessed at 12 percent of their productive value for property tax purposes, instead of 32 percent of market value as commercial property. The change could save Missouri's sawmills about $4 million in taxes annually, costing schools and local governments an equal amount.
3/17/11: Senate remains stalled on bill extending unemployment benefits
State Sen. Jim Lembke promised Wednesday to keep talking against a bill that would use federal money to extend unemployment benefits to 99 weeks — 20 weeks longer than when the benefits now expire. Lembke, R-Lemay, said again Wednesday the battle against the unemployment extensions is intended to send a message to Congress and the federal government: “Quit sending us money you don’t have.”
3/16/11: Missouri mulling downsizing legislature
Almost every legislature in the country is talking about cutting costs and services because of budget problems, but a few also are talking about downsizing themselves. Lawmakers in about a half-dozen states, including Missouri, have proposed shrinking the number of legislators elected and thereby saving the office, staff and travel expenses each incurs.
3/15/11: State lags in use of stimulus for energy projects
Two years into a three-year program, Missouri has yet to spend most of the money it was allotted under a federal economic stimulus program intended to make homes more energy efficient for low-income residents. Missouri received nearly $129 million in low-income home weatherization funds under the 2009 stimulus act. As of the end of January, just $47 million of that — or 37 percent of the total — had been spent, according to figures from the Department of Natural Resources.
3/15/11: Panel backs Nixon on education
A House committee approved a state budget Tuesday that would hold funding steady for public K-12 schools while cutting aid for colleges and universities. The spending plan approved by the House Budget Committee totals about $23.2 billion, larger than the plan Gov. Jay Nixon submitted in February by about $142 million.
3/13/11: House readies final changes to state budget
The House Budget Committee will make its final changes to the $23.2 billion state budget for the coming year while awaiting Senate actions that will determine whether there is money to meet the promises that spending plan will make. A proposal to use $189.7 million in federal education funds easily passed the House, but conservative lawmakers have announced their intent to filibuster the bill in the Senate.
3/13/11: Missouri's higher education revenue per student down sharply
In recent years, Missouri has cut aid to colleges and universities and held down tuition increases while the number of students has risen. The result is that Missouri has seen one of the largest declines nationally in per-student revenue for higher education. Missouri’s total available revenues for higher education institutions declined by 12 percent on a per-student basis from the 2005 to 2010 fiscal years, according to a report released this week by the State Higher Education Executive Officers, a national association for the CEOs of state higher education coordinating boards.
3/9/11: Missouri House panel calls for prison funding cuts
The Missouri House Budget Committee wants the Department of Corrections to make several changes in the way it spends its funding in the next fiscal year. In a budget proposal released on March 8, the proposal would cut about $1.3 million in funding for maintaining the state's correctional institutions.
3/8/11: Some Missouri Republicans rebuffing federal money
Some Republican state senators want Missouri to reject the federal government's offer of $285 million for extended jobless benefits and public school funding. The state should turn the money back to Washington and demand it go toward paying down the ballooning federal deficit, said Sen. Jim Lembke, R-Lemay, who is working to block passage of bills allotting the federal funds.
3/8/11: Missouri House proposes $8M cut from state lottery advertising budget, transfers funds to education
A Missouri House budget proposal released Tuesday would eradicate much of the money available to advertise the state lottery — a move critics say could also have a negative impact on funding for education. The proposal from the House Budget Committee would reduce the Missouri Lottery's advertising budget from $9.3 million this year to $1 million during the 2012 fiscal year that begins July 1. The balance would be transferred to an education fund, where a portion of the lottery's proceeds already goes.
3/7/11: Cell tower contracts generate more than $100,000 for Southeast Missouri State University
It may not be much in the grand scheme of a $120 million operational budget, but Southeast Missouri State University's contracts with cell phone providers generate in excess of $100,000 a year. It's revenue that helps fund technical operations on campus and other expenses, while helping cell phone users around Southeast Missouri stay connected. And it's part of a growing revenue stream for public and private entities.
3/3/11: Missouri revenue collections increase 6.2 percent
Net general revenue collections are on the rise and the budget proposal by Missouri Gov. Jay Nixon — calling for a reduction in total state spending by 2.5 percent — is on track, according to the state’s budget director. Fiscal year-to-date revenue collections, starting on July 1 and ending Feb. 28, increased 6.2 percent from $4.22 billion last year in the same period to $4.48 billion this year, according to the latest figures released by the Missouri Office of Administration.