Missouri state budget and finances

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Missouri budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AAA (as of 2014)
Current governor:
Jay Nixon
Financial figures
Total spending (state and federal funds):
$23.2 billion (estimated for 2014)
Per capita spending:
$3,822.49 (estimated for 2014)
Total state tax collections:
$11.1 billion (2013)
Per capita tax collections:
$1,842.99 (2013)
State debt:
$76.5 billion (as of 2014)
Per capita state debt:
$12,702 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Missouri
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in Missouri increased by approximately $235 million, from $22.9 billion in fiscal year 2013 to an estimated $23.2 billion in 2014. This represents a 1.0 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Missouri a credit rating of AAA, the highest score available.[1][2][3]
In 2012, approximately 39 percent of Missouri's general revenues came from the federal government, the fifth-highest share in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Missouri in fiscal year 2014, estimated per capita spending equaled $3,822, a smaller amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Missouri $15,970 $7,208 $23,178 6,063,589 $3,822.49
Iowa $13,957 $6,122 $20,079 3,107,126 $6,462.24
Kansas $11,158 $3,511 $14,669 2,904,021 $5,051.27
Nebraska $7,725 $2,817 $10,542 1,881,503 $5,602.97
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Missouri can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Missouri in fiscal year 2013, higher education accounted for 4.8 percent of total government spending, a smaller share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Missouri 22.8% 4.8% 0.7% 35.8% 2.7% 9.4% 23.8%
Iowa 16.4% 26.0% 0.5% 19.8% 2.1% 6.8% 28.3%
Kansas 26.8% 18.2% 0.2% 18.5% 2.7% 7.2% 26.4%
Nebraska 14.6% 23.3% 0.5% 17.9% 2.2% 7.8% 33.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the state budget spent on Medicaid increased from 32.4 percent to 35.8 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 22.8% 4.8% 0.7% 35.8% 2.7% 9.4% 23.8%
2012 22.6% 4.7% 0.7% 35.0% 2.6% 10.4% 23.9%
2011 23.1% 5.1% 0.8% 33.1% 2.7% 11.9% 23.4%
2010 21.3% 5.2% 0.7% 34.4% 2.7% 11.2% 24.6%
2009 22.6% 5.6% 0.7% 32.4% 2.8% 10.5% 25.3%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In Missouri in 2013, per capita state tax collections amounted to $1,843, a smaller amount than in any neighboring state.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Missouri $29,896 $4,791,043 $550,824 $5,380,651 $377,258 $11,073 $11,140,745 6,044,917 $1,842.99
Iowa N/A $3,608,991 $798,137 $3,436,758 $428,554 $101,936 $8,374,376 3,092,341 $2,708.10
Kansas $79,475 $3,742,916 $382,944 $2,956,588 $384,553 $73,806 $7,620,282 2,895,801 $2,631.49
Nebraska $148 $2,197,988 $130,762 $2,101,694 $275,563 $12,789 $4,718,944 1,868,969 $2,524.89
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Missouri tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Missouri, individual income taxes accounted for 48.3 percent of total state tax collections, a greater share than in any neighboring state.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Missouri 0.27% 43.0% 4.94% 48.3% 3.39% 0.1%
Iowa N/A 43.1% 9.53% 41.04% 5.12% 1.22%
Kansas 1.04% 49.12% 5.03% 38.8% 5.05% 0.97%
Nebraska 0.0% 46.58% 2.77% 44.54% 5.84% 0.27%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

Fiscal year 2015

DocumentIcon.jpg See budget bill: Appropriations Bills for Fiscal Year 2015

Governor Jay Nixon announced his fiscal year 2015 budget proposal on January 21, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $27.67 billion, including $9.08 billion in general fund expenditures.[10]

On June 24, 2014, Nixon signed into law the fiscal year 2015 budget. The enacted budget totaled $26.4 billion. The governor exercised his line item veto authority to remove $144.6 million in general revenue spending and restrict $641.6 million in general revenue expenditures.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Missouri had a state debt of approximately $76.5 billion. Its state debt per capita was $12,702. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Missouri $76,489,010,000 $12,702 34
Iowa $37,783,060,000 $12,290 38
Kansas $39,025,693,000 $13,523 28
Nebraska $13,139,045,000 $7,081 49
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Missouri public pensions and Missouri public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Missouri's state-administered pension plans decreased from 81.8 percent to 76.9 percent. The state paid 96 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $11.6 billion. This amounted to $1,952 in unfunded liabilities per capita.[12][13]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[14][15]

The table below lists the Standard and Poor's credit ratings for Missouri and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[16]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Missouri AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Iowa AAA AAA AAA AAA AAA AAA AAA AA+ AA+ AA+ AA+
Kansas AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Nebraska AAA AAA AAA AAA AA+ AA+ AA+ AA+ AA+ AA+ AA+
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[17]

The table below notes what share of Missouri’s general revenues came from the federal government in 2012. That year, Missouri received approximately $10.4 billion in federal aid, 39.4 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[17]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Missouri $10,440,927 39.42% 5
Iowa $6,073,376 33.08% 26
Kansas $4,061,217 26.95% 41
Nebraska $3,141,413 34.22% 22
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Missouri received $4.46 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[18]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[19][20]

  1. Budget instruction guidelines are sent to state agencies in July of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests to the governor in October.
  3. Agency hearings are held from January through April. Public hearings are held in January and February.
  4. The governor submits his or her proposed budget to the state legislature in January.
  5. The legislature typically adopts a budget in April or May. A simple majority is required to pass a budget. The fiscal year begins July 1.

Missouri is one of 44 states in which the governor has line item veto authority.[20]

The governor is legally required to submit a balanced budget. The legislature is not required to pass a balanced budget, but the governor is required to sign one.[20]

Agencies, offices and committees

The following standing committees in the Missouri State Legislature deal with budget and finance matters:[21]

  1. Appropriations Committee, Missouri State Senate
  2. Budget Committee, Missouri House of Representatives
  3. Fiscal Review Committee, Missouri House of Representatives
  4. Joint Committee on Tax Increment Financing, Missouri Legislature
  5. Joint Committee on Tax Policy, Missouri State Legislature
  6. Ways and Means Committee, Missouri House of Representatives
  7. Ways and Means Committee, Missouri State Senate
  8. Appropriations - Agriculture and Natural Resources Committee, Missouri House of Representatives
  9. Appropriations - Education Committee, Missouri House of Representatives
  10. Appropriations - General Administration Committee, Missouri House of Representatives
  11. Appropriations - Health, Mental Health and Social Services Committee, Missouri House of Representatives
  12. Appropriations - Infrastructure and Job Creation Committee, Missouri House of Representatives
  13. Appropriations - Public Safety and Corrections Committee, Missouri House of Representatives
  14. Appropriations - Revenue, Transportation and Economic Development Committee, Missouri House of Representatives

The Missouri State Auditor is responsible for auditing state agencies, boards and commissions; the state's court system; and counties without an auditor. Missouri's audit reports are published online.[22]

The Missouri Treasurer manages annual state revenues, directs the state's banking services and manages the state's investment portfolio.[23]

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[24] According to the report, Missouri received a grade of C+ and a numerical score of 75, indicating that Missouri was "middling" in terms of transparency regarding state spending.[24]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Missouri ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Missouri.

  1. Missouri Budget Reserve Fund, Amendment 1 (2000)
  2. Missouri Budget Stabilization Fund, Amendment 6 (1992)
  3. Missouri Budget for Pensions to the Elderly, Issue 5 (1942)
  4. Missouri Custodian of State Funds, Amendment 6 (August 1986)
  5. Missouri Debt Limit Increase for Utilities Amendment, Issue 7 (1920)
  6. Missouri Department of Budget Proposition, Issue 5 (1922)
  7. Missouri Extend Special Park Fund, Amendment 3 (1960)
  8. Missouri Facilities Maintenance Reserve Fund, Amendment 3 (1996)
  9. Missouri General Assembly Expenses, Issue 1 (1946)
  10. Missouri Gubernatorial Budgetary Recommendations, Amendment 10 (2014)
  11. Missouri Homestead Loan Fund Amendment, Issue 7 (1918)
  12. Missouri Honorable Service Bonus, Issue 3 (1948)
  13. Missouri Increase Debt Limit for Subway Construction Amendment, Issue 5 (1914)
  14. Missouri Increase Kansas City Debt Limit for Public Utilities, Issue 2 (1914)
  15. Missouri Increase of Debt Limit for Sewer Construction Amendment, Issue 2 (1912)
  16. Missouri Investment of State Funds, Amendment 3 (1956)
  17. Missouri Public School Fund Management, Issue 1 (1944)
  18. Missouri Rainy Day Fund, Amendment 7 (1996)
  19. Missouri Raise County Debt Limit for the Building of Poorhouses Amendment, Issue 6 (1910)
  20. Missouri Revenue for School Purpose Amendment, Issue 2 (1918)
  21. Missouri School Foundation Program, Referendum 2 (October 1955)
  22. Missouri State Land Bank, Issue 2 (1916)
  23. Missouri State Treasury Reserve Fund, Amendment 3 (August 1986)

Recent news

This section displays the most recent stories in a Google news search for the terms "Missouri budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Missouri state budget and finances - Google News Feed

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Contact information

Missouri Division of Budget and Planning
Room 124, State Capitol, Box 809
Jefferson City, Missouri 65102
Telephone: 573-751-2345

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Morningstar, "The State of State Pension Plans 2013: A Deep Dive Into Shortfalls and Surpluses," accessed September 16, 2013
  13. The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans Funding Gap Continues to Grow,” accessed April 8, 2014
  14. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  15. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  16. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  17. 17.0 17.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  18. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  19. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  20. 20.0 20.1 20.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  21. Project Vote Smart, "Missouri Legislative Committees," accessed March 20, 2015
  22. Missouri State Auditor, "State Auditor's Office," accessed March 18, 2015
  23. Missouri State Treasurer's Office, "Home page," accessed October 29, 2009
  24. 24.0 24.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014