The state Revenue Department has been reworking tax tables after announcing in September that it was under collecting individual income taxes. But fixing the problem midyear means taxpayers could owe more money at the end of the year.
Budget Director Haug admitted as much by predicting the state’s budget picture would improve when the majority of tax returns are filed in March and April.
Budget Director Dan Haug points out the deficit is not yet a problem because the state ended the last year with a $280 million surplus. He says Missouri is one of 10 states to have a triple-A bond rating from the credit rating agencies because it makes budget cuts when money is short.
Haug says the estimate allows elected office holders to move beyond a debate over how much revenue there is and instead focus on how to spend the money.
The consensus revenue estimate is used to reformulate financial expectations for the rest of the current fiscal year and determine expectations for the next one.