Thursday, Jan. 5, 2006
Contact: Spence Jackson, 573-751-0290
Blunt, House and Senate Leaders Agree on State Revenue Estimate
Solid Growth Expected Due to Continued Economic Improvements
JEFFERSON CITY–Gov. Matt Blunt and legislative budget leaders today agreed to an estimated amount of revenue the state will collect to fund its Fiscal Year (FY) 2007 budget.
In a news conference in the governor’s capitol office, Blunt, Senate Appropriations Chairman Chuck Gross and House Budget Chairman Allen Icet agreed that the state’s general revenue fund should take in more than $7.039 billion, a net growth of 4.9 percent for FY 2006, which ends on June 30, 2006 and $7.358 billion for FY 2007 which begins July 1, 2006 and ends on June 30, 2007, an increase of 4.5 percent.
These solid growth predictions are based on the strength of personal and corporate income taxes stemming from increased economic activity in Missouri, including the creation of more than 28,000 new jobs since January 2005. Reaching a consensus revenue estimate helps policy makers focus on setting priorities instead of disputing over the amount of money available to fund government services.
Both the revised FY 2006 and FY 2007 estimates take into account the redirection of general revenue collections to the state highway department as a result of the voter approved Constitutional Amendment 3 and the phase out of the estate tax.
"It is clear that our efforts to help stimulate the creation of jobs and improve our economy are paying off," Blunt said. "I appreciate the good work of House and Senate leaders in helping me craft a budget that lived within Missouri taxpayers means while prioritizing public education and funding a wide array of other government services. I look forward to this continued partnership in the coming fiscal year and the continued benefits it will bring our state."
Under Blunt’s leadership Missouri enacted real litigation reform, balance to the state’s workers’ compensation laws and the governor’s Quality Jobs initiative which has provided state and local governments with better tools to compete with other states and nations for every job that is created.
This marks the second year in a row that the governor’s office and the Missouri General Assembly have agreed on a revenue estimate for the state, the number used to craft the state budget. The previous administration, unable to reach such consensus in FY 2004 used its own estimates which resulted in brutal withholdings from public schools, higher education institutions and several state agencies.
Blunt will announce his budget and legislative priorities in his annual State of the State speech scheduled for Wednesday, Jan. 11 at 7:00 p.m.
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