Thursday, July 6, 2006
Contact: Jessica Robinson, 573-751-0290
Blunt, Budget Chairs Gross, Icet Acclaim Year End Fiscal Report
JEFFERSON CITY–The pro-growth policies of Gov. Matt Blunt and the Missouri General Assembly have led to 18 months of steady job growth and economic improvement and Missouri's General Revenue Fund is reaping the benefits, as evidenced in the year end totals for Fiscal Year 2006.
“Small business owners and entrepreneurs are building on the significant improvements we have made to create jobs, revive the state's economy and move Missouri forward,” Blunt said. “I applaud members of the General Assembly, for working with me to generate such significant growth, and the people of Missouri for taking advantage of new policies enabling them to bring our state’s economy back to life.”
The 2006 fiscal year for Missouri ended June 30 and tallied the most significant General Revenue Fund (GR) growth in at least two decades. The extraordinary 9.2 percent growth is well outside the historical norm. Only twice over the last 20 years has GR grown above 9 percent, and both instances followed significant changes to tax law. Total net collections outpaced the solid 4.9 percent growth forecast by $292.4 million.
Senate Budget Chair Chuck Gross said, “Our 4.9 percent growth estimate was certainly aggressive. Achieving 9.2 percent is not something you can rationally project happening. It does indicate we are on the right track with our economic policies and that Missourians are benefiting from those policies.”
Blunt said, “Our diligent efforts to improve the state’s jobs climate are bearing fruit. With the creation of almost 50,000 jobs in the last 18 months, Missouri is now home to an historic 2.8 million jobs. More Missourians are working today than at any other time in our state’s history. Smart fiscal management, lawsuit reform, significant and much needed workers’ compensation reform and a diligent interest in the state’s future contributed to the significant increase and set the stage for General Revenue growth.”
House Budget Chair Allen Icet said, “We have implemented solid budgetary practices whereby we have required the state to live within its means, just as Missouri businesses and families do, and we have done that without a tax increase or the use of one-time funds.”
Growth in GR for next fiscal year is currently estimated at 4.5 percent. The estimate accounts for national trends such as continued high energy prices and higher interest rates. The estimate will be reviewed and revised as necessary by the governor and General Assembly prior to the 2007 legislative session.
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