Thursday, January 11, 2007
Contact: Jessica Robinson, 573-751-0290
Blunt and Legislative Leaders Reach Consensus on State Revenue Estimate
JEFFERSON CITY–Gov. Matt Blunt, Sen. Chuck Gross and Rep. Allen Icet today reached an agreement on an estimated amount of revenue the state will collect to fund its Fiscal Year (FY) 2008 budget.
“Our efforts to help stimulate job creation and improve our state economy are paying off,” Governor Blunt said. “I appreciate the hard work of Senate and House leaders in helping me craft a budget that Missouri taxpayers can afford while continuing to make education our highest priority and funding a wide array of other vital government services like healthcare. I look forward to this continued partnership in the coming fiscal year and the continued benefits it will bring to all Missourians.”
“I am pleased that this consensus revenue estimate provides us with a solid foundation upon which we can build the FY 08 budget," Senate Appropriations Chair Chuck Gross said.
“With the State only one year removed from historical revenue collections, Missouri continues to move in a strong direction economically,” House Budget Chair Allen Icet said. “Our commitment to pro-growth legislation and no tax increases, as shown by this positive revenue estimate, will continue to benefit Missourians.”
Governor Blunt, Senate Appropriations Chair Chuck Gross and House Budget Chair Allen Icet agreed that the state’s general revenue fund should take in more than $7.627 billion, a net growth of 4.0 percent for FY 2007, which ends on June 30, 2007 and $7.919 billion for FY 2008 which begins July 1, 2007 and ends on June 30, 2008, an increase of 3.8 percent.
These growth predictions, which are near long-term averages, are supported by the strength of personal income taxes stemming from the creation of more than 47,700 new jobs since January 2005. However, a slowdown in taxable spending is anticipated as consumers reduce debt loads in the face of higher interest rates. 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 2007 and FY 2008 estimates take into account the redirection of general revenue collections to the Missouri Department of Transportation as a result of the voter approved Constitutional Amendment 3 in 2004.
Blunt will announce his budget and legislative priorities in his annual State of the State address scheduled for Wednesday, January 24 at 7:00 p.m.
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