Thursday, December 30, 2004
Contact: Spence Jackson, (573)751-1378
Blunt, House and Senate Agree on State Revenue Estimate
Loss of One-Time Revenue Means Modest Growth; Say Difficult Decisions Must be Made During Legislative Session
JEFFERSON CITY - Gov.-elect Matt Blunt and legislative budget leaders today agreed to an estimated amount of revenue the state will collect to fund its Fiscal Year (FY) 2006 budget.
In a news conference at the Missouri State Capitol, Blunt, Senate Appropriations Chairman Chuck Gross and House Budget Chairman Brad Lager agreed that the state would take in more than $6.7 billion in General Revenue for the fiscal year that begins July 1, 2005, and ends on June 30, 2006. Despite a prediction of solid economic growth the loss of one-time revenue means that there will be a net increase of only 2.2 percent over general revenue dollars in FY 2005.
The consensus revenue estimate takes into account the $30.4 million in general revenue that will be shifted to the Department of Transportation as a result of the recent passage of Amendment 3 as well as the expected $33 million loss the state will incur as a result of the estate tax phase out at the federal level. It also takes into account the fact that $274 million dollars the federal government provided in FY 2004 and FY 2005 are no longer available.
The state also issued $85 million in revenue bonds in FY 2004 and $45 million in revenue bonds in FY 2005. Such proceeds are not reflected in the estimate.
Blunt praised the House and Senate leaders for their hard work and tireless efforts in reaching the consensus revenue estimate and cautioned that difficult choices lay ahead to ensure that state government lives within its means.
"I am pleased that we have reached an agreement so early on the estimated revenues the state will receive to fund the services and operations of our state government," Blunt said. "Now we must begin the challenging work of identifying budget priorities while ensuring that we remain responsible stewards of the hard-earned tax dollars Missourians send to Jefferson City.
"Missourians have expressed their strong desire for a change in the fiscal management of the state and have clearly stated their opposition to tax increases as a response to budget challenges. I stand ready to work with legislators from both political parties to craft a budget that is mindful of this directive and seeks to provide better services using existing revenue sources."
During the last legislative session the governor and the General Assembly failed to agree on a consensus revenue estimate. The stalemate led to the unnecessary withholding by the governor of millions of dollars from Missouri public schools and several state agencies.
The unity shown by Blunt and legislative leaders this time around will enable state government to craft a fiscally responsible budget that better reflects the priorities of Missourians.
Meanwhile, Blunt also announced that another of his priorities, education, would be the focus of an education summit he is hosting that will bring together legislators and educators from across Missouri to discuss re-writing the state's school funding formula.