Audio: Officials now clear why Missouri’s budget is $100 million in the hole

Great seal of Missouri and US Flag with money

(Missourinet) – Missouri lawmakers and administrators are trying to figure out what has caused a $100 million budget shortfall in the first two months of the current fiscal year. Democratic State Representative Deb Lavender of Kirkwood is a member of the House Budget Committee. She notes there’s a level of uncertainty over how the federal tax cuts passed by Congress late last year could be impacting state taxes.

 

 

One of the few bright spots in the state’s current economic picture is a rise of almost 4 percent in sales and use tax collections. Democratic State Representative Deb Lavender attributes the increase to internet giant Amazon, which started collecting state sales tax in February.

 

 

Missouri Budget Director Dan Haug admits he’s concerned. But he says a surplus of funds from the last fiscal year means the state has a cushion to absorb some of the shortfall currently being experienced.

 

 

Revenue collections for the fiscal year 2018 far exceeded expectations and outperformed the previous year by five percent.