Missouri state budget

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Missouri state budget

Flag of Missouri.png
Budget calendar:  Annual
Fiscal year:  2015
State credit rating:  AAA (as of May 2012)
Current governor:  Jay Nixon
Financial figures
GF expenses[1]:  $8.022 billion (estimated for FY 2013)
All funds expenses:  $22.943 billion (estimated for FY 2013)
Spending % change:  Decrease.svg1.80%[2]
% from federal funding:  39.42%
State debt:  $76,489,010,000
Per capita state debt:  $12,702
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Missouri, including:
  • a summary of the budget drafting process
  • trends in expenditures and revenues
  • current and past fiscal year budget developments
  • financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Missouri's total expenditures decreased by approximately $1.284 billion, from $24.227 billion in 2009 to $22.943 billion in 2013. This represents a 5.30 percent decrease.

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[3][4]

  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.[4]

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.[4]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[5]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[5]
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[5]
  • Federal funds: "Funds received directly from the federal government."[5]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[5]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[5] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[5]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Missouri $8,022 $7,209 $7,712 $0 $22,943 $3,795.89
Iowa $6,231 $5,682 $7,539 $157 $19,609 $6,345.10
Kansas $6,198 $3,599 $4,193 $415 $14,405 $4,977.61
Nebraska $3,590 $3,014 $3,559 $0 $10,163 $5,439.08
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[6]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Missouri can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[5]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
Missouri 22.6% 4.7% 0.7% 35.0% 2.6% 10.4% 23.9%
Iowa 16.8% 25.0% 0.6% 19.6% 2.7% 7.5% 27.8%
Kansas 25.8% 16.9% 0.3% 18.6% 2.5% 8.8% 27.1%
Nebraska 15.3% 23.5% 0.5% 16.7% 2.3% 7.5% 34.3%
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."[5]

Expenditure trends

From 2008 to 2012, elementary and secondary education spending fell by 1.60 percentage points, or 6.6 percent, as a share of the budget. During the same period, spending categorized as "other" rose by 2.30 percentage points, or 10.6 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012.[5][7][8][9][10] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other**
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%
2008 24.2% 5.6% 0.8% 34.5% 2.9% 10.4% 21.6%
Change in % -1.60% -0.90% -0.10% 0.50% -0.30% 0.00% 2.30%
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."[5]

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[5] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[5]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Missouri $1,872 $5,489 $415 $0 $307 $8,083 $1,337.32
Iowa $2,109 $3,315 $448 $120 $645 $6,637 $2,147.61
Kansas $2,525 $2,931 $371 $0 $514 $6,341 $2,191.12
Nebraska $1,475 $2,102 $276 $1 $199 $4,052 $2,168.57
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[6]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[5][7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Missouri ($ in millions)[5][7]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $1,872 $5,489 $415 $0 $307 $8,083 $1,337.32
2012 $1,845 $4,914 $341 $0 $241 $7,341 $1,218.52
2011 $1,760 $4,640 $386 $0 $324 $7,110 $1,183.02
2010 $1,732 $4,434 $288 $0 $321 $6,774 $1,129.74
2009 $1,813 $4,876 $358 $0 $404 $7,451 $1,244.41
Change in % 3.25% 12.57% 15.92% 0.00% -24.01% 8.48% 7.47%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[6][11]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

Missouri does not enact its state budget through one appropriation bill, but rather through several. To view the appropriation bills that comprise the fiscal year 2014 budget, click here.[12]

Fiscal year 2013

See also: Missouri state budget (2012-2013)

Fiscal year 2012

See also: Missouri state budget (2011-2012)

Fiscal year 2011

See also: Missouri state budget (2010-2011)

Fiscal year 2010

See also: Missouri state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[5][8]

Historical state budget spending in Missouri ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $7,938 34% $7,887 33.8% $7,539 32.3% $0 0% $23,364
2010-2011 $7,630 33% $7,220 31.3% $7,805 33.8% $447 1.9% $23,102
2009-2010 $7,565 32.3% $6,370 27.2% $8,743 37.4% $712 3% $23,390
Averages: $7,711 33% $7,159 31% $8,029 34% $386.333 2% $23,285.33
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Missouri had a state debt of over $76 billion. Its state debt per capita was $12,702. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[13][14]

Total state debt in Missouri[15]
Type Totals U.S. rank
Total state debt $76,489,010,000 22
Per capita debt $12,702 34
State and other fund expenditures $15,825,000,000 18

Public pensions

See also: Missouri public pensions and Missouri public employee salaries

A 2012 report from the Pew Center on the States noted that Missouri's pension system was funded at 77 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[16]

Taken together, the funding ratio for the state's pension systems decreased from 84.08 percent in fiscal year 2007 to 78.20 percent in fiscal year 2012, a decrease of 5.88 percentage points, or seven percent. Likewise, unfunded liabilities increased from approximately $8.5 billion in fiscal year 2007 to more than $13.5 billion in fiscal year 2012.[17][18][19][20][21]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.[22]

The table below lists the Standard and Poor's credit rating for Missouri from 2001 to 2012 (grades from surrounding states are provided for additional context).[22]

S&P credit ratings from 2001 to 2012
Missouri Iowa Kansas Nebraska
2012 AAA AAA AA+ AAA
2011 AAA AAA AA+ AAA
2010 AAA AAA AA+ AA+
2009 AAA AAA AA+ AA+
2008 AAA AAA AA+ AA+
2007 AAA AA+ AA+ AA+
2006 AAA AA+ AA+ AA+
2005 AAA AA+ AA+ AA+
2004 AAA AA+ AA+ AA+
2003 AAA AA+ AA+ AA+
2002 AAA AA+ AA+ AA+
2001 AAA AA+ AA+ AA+

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[23]

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.[23]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Missouri 39.42% $10,440,927,000 5
Iowa 33.27% $6,073,376,000 25
Kansas 26.95% $4,061,217,000 41
Nebraska 34.34% $3,141,413,000 22

Stimulus

Missouri received $4.46 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[24]

Budget transparency

Transparency evaluation
Missouri Accountability Portal
Searchability Y
600px-Yes check.png
Grants N
600px-Red x.png
Contracts Y
600px-Yes check.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries Y
600px-Yes check.png
Last evaluation date unknown.
See also: Evaluation of Missouri state website and Constitutional provisions regarding reading of bills

Missouri Accountability Portal is the name of the transparency website created by the Missouri state government. It discloses information about state spending, and includes data on state employee salaries, agency expenditures, and tax credit information. The Missouri Accountability Portal was created at the Executive Order of Governor Matt Blunt in July 2007.

The table to the right is helpful in evaluating the level of transparency provided by the Missouri Accountability Portal.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Missouri, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[25][26]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Missouri tied for eighth in the nation with 11 other states, earning six out of eight possible points.[26]

Missouri - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast
{{{1}}}
Nonpartisan staff Y
600px-Yes check.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[26]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

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.[27] 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.[27]

Accounting principles

See also: Missouri government accounting principles

The Missouri State Auditor is charged with auditing approximately 200 state agencies and boards and commissions; the state court system, including 45 judicial circuits and nearly 400 municipal courts; and the 89 counties in Missouri that do not have a county auditor. The Auditor may also be called upon to audit local units of government by citizen petition. On average, 20 audits of local government entities are performed each year. Missouri's audit reports are published online.[28]Cite error: Closing </ref> missing for <ref> tag

The Missouri Division of Accounting is responsible for operation of the statewide accounting and payroll systems and is the custodian of the official accounting records of the state. The division prepares payments, publishes annual financial reports, administers bond sales for the Board of Fund Commissioners and Board of Public Buildings, and administers Social Security coverage for state political subdivisions.[29]

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  4. 4.0 4.1 4.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  5. 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 5.15 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  6. 6.0 6.1 6.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  7. 7.0 7.1 7.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  8. 8.0 8.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  9. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  10. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  11. United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  12. Missouri Office of Administration, "Appropriation Bills," accessed April 24, 2014
  13. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  14. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  15. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Pew Center on the States, "Widening Gap Update: Missouri," June 18, 2012
  17. Missouri State Employees' Retirement System, "Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2012," accessed November 15, 2013
  18. Missouri Department of Transportation and Highway Patrol Employees' Retirement System, "Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012," accessed November 15, 2013
  19. Missouri Local Government Employees Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 15, 2013
  20. University of Illinois Retirement, Disability and Death Benefit Plan, "Actuarial Valuation as of October 1, 2012," accessed November 15, 2013
  21. Public School and Education Employee Retirement Systems of Missouri, "PSRS/PEERS 2012 Comprehensive Annual Financial Report, Financial Section," accessed November 15, 2013
  22. 22.0 22.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  23. 23.0 23.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  24. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  25. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  26. 26.0 26.1 26.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  27. 27.0 27.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  28. Missouri State Auditor, "Home page," accessed October 29, 2009
  29. Missouri Division of Accounting, "Home page," accessed October 29, 2009