Shortly after Eric Greitens is sworn in as the new governor of Missouri in January, he may have to cut millions from the state budget. According to incoming House Budget Chair Rep. Scott Fitzpatrick (R-Shell Knob) the new governor could face a $200 million shortfall.
Fitzpatrick notes that the reason for the shortfall is in part because corporate income tax collections are down $35 million this fiscal year, adding to the decline of $90 million last year from corporate tax collections. Also, an increase in tax refunds in June took out additional state revenue.
The Missouri Budget Project, a political think tank, has put the state’s shortfall closer to $300 million and blames the decline in revenue in part on lawmakers’ decision in 2011 to phase out the corporate franchise tax.
It is possible that tax revenues could still increase by January or Governor Nixon could spare Greitens and make the budget cuts before he leaves office. Stay tuned for more information about this story.