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Missouri revenues increase from last year, fall behind in budget

401k2013 via Flickr

The Missouri Office of Administration released the October general revenue report Tuesday.

The 2015 fiscal year began on July 1 and state revenue collections increased 4.3 percent compared to last year from $2.48 billion to $2.59 billion.  State Budget Director Linda Luebbering said the revenue collections need to be up 11 percent to fully fund the budget appropriated by the legislature.

"We are at 4.3 percent growth and that is really why the governor did the expenditure restrictions earlier this year because it's just very unlikely that we would get to 11 percent growth for the year," Luebbering said. "But we are seeing some growth."

Luebbering said to make sure the budget stays in balance, Governor Jay Nixon has restricted about $500 million worth of spending to have sufficient revenue to pay for the highest priority.

Luebbering said she would like to see the individual income tax collections increasing to 5.8 percent for the year because that means jobs are increasing as well as wages for people that are working. The sales tax is also up 3.3 percent over last fiscal year as people are more confident in spending their money.

Only corporate income has decreased over the fiscal year which was not unexpected for the government. There have been some corporate tax cuts that would cause this number to fall.

"We're assuming that we will get to growth of about 5.2 percent," Luebbering said. "So we're not there. We are at 4.3 percent right now for the fiscal year, but we do believe that the economy will continue to move forward and we'll see a little bit better growth later in the fiscal year."

The fiscal year ends June 30, 2015.