Missouri state budget (2009-2010)

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Gov. Jay Nixon announced on October 28, 2009 $204 million in additional cuts, eliminating 700 state jobs, above the $430 million in cuts and freezes implemented in June.[1] Gov. Nixon vetoed $105 million in state spending and froze $325 million of planned allocations for FY 2010 in June 2009.[2]

FY 2010 first quarter revenues

  • Net individual income tax -10.7 %
  • Net sales and use tax -6.8%
  • Net corporate income tax -15.9%
  • Total net general revenue -10.0%

Gov. Nixon decided against furloughs because the cost savings were not as great as eliminating positions.[3]

Missouri borrowed $150 million more from its cash reserves on October 9, 2009, bringing the total to $350 million borrowed since the start of FY 2010 on July 1, 2009, with $170 million remaining in the reserve fund. The FY 2010 budget was based on a 1 percent decline in revenue from FY 2009, but the state had seen a 10 percent decline since July 1 and a 16 percent drop for September 2009. FY 2009 saw an almost 7 percent drop from FY 2008.[4] According to state officials, state revenue fell 7 percent in fiscal year 2009 and in the first seven months of fiscal year 2010, revenues were 12.5 percent below predictions.[5]

2008-2009 budget crisis

See also: Missouri state budget (2008-2009)

Budget background

See also: Missouri state budget

Missouri's fiscal year begins July 1 and ends June 30 of the following year. In October state department agencies prepare budget requests and revenue estimates for the upcoming budget year. By the end of December the governor reviews both the requests and the revenue estimates prior to presenting a budget recommendation to the legislature. Both the House and the Senate review the bill, hold a series of hearings and make any necessary amendments prior to approving the budget. The Senate usually finishes its work on budget about three weeks before the legislature adjourns at the end of April. But, all appropriations bills must be passed by the General Assembly one week before the session ends, May 8, 2009. The appropriations are then forwarded to the governor who has line item veto power and can reduce or eliminate any amount of funding for any item in a bill before signing it into law.[6]

Budget figures

State spending from the general fund for fiscal year 2010, ending June 30, totaled $23.6 billion, according to the audited Comprehensive Annual Financial Report released in late January, and had steadily increased over the past five years.[7]

Fiscal year State spending
FY 2006 $19.6 billion
FY 2007 $19.7 billion
FY 2008 $20.9 billion
FY 2009 $22.3 billion
FY 2010 $23.6 billion

The following table provides a history of Missouri's expenditures and gross domestic product (GDP).

Fiscal year Expenditures (billions) GDP (billions)
2000 $28.0[8] $176.7[8]
2001 $30.5[8] $182.4[8]
2002 $33.0[8] $188.4[8]
2003 $34.3[8] $195.5[8]
2004 $35.6[8] $204.9[8]
2005 $37.2[8] $213.0[8]
2006 $39.5[8] $220.1[8]
2007 $41.9[8] $229.5[8]
2008 $44.5[8] $239.2[8]
2009 $47.3*[8] $249.4*[8]
  • NOTE: The figures for FY 2009 had not been finalized at the time this table was built.

Accounting principles

See also: Missouri government accounting principles

Susan Montee was elected Missouri State Auditor in November 2006. The State Auditor's Office is Missouri's independent watchdog agency, 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 State 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.[9]

State Treasurer Clint Zweifel is the state's Chief Financial Officer, elected in November 2008. The State Treasurer's Office manages Missouri's annual state revenues, directs the state's banking services and manages Missouri's $3.1 billion investment portfolio.[10]

The Institute for Truth in Accounting (IFTA) rated Missouri “tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR), the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Missouri's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[11] Missouri's CAFRs are published online by the Missouri Division of Accounting.[12]

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 the Social Security coverage for state political subdivisions. Mark A. Kaiser was Director of the Division of Accounting as of 2009.[13]

Credit rating Fitch Moody's S&P
Missouri[14] AAA Aaa AAA

Budget transparency

Missouri Accountability Portal is the name of the publicly available website created by the Missouri government. It discloses information about Missouri government's 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 National Taxpayers Union pulled expenditure information from the Missouri Accountability Portal (MAP) and issued a press release in August 2008 detailing the discovery of more than $2.4 million of taxpayer money spent for questionable purposes over the past eight years, including purchases made at bakeries, beauty salons, lingerie stores, coffee shops and picture-framing galleries, among others.

The state of Missouri spent $15,482.57 at Ann's Bra Shop from 2000 to 2008 for "professional services" and "clothing supplies." Over the same period, government employees spent more than $1.6 million at coffee shops, $387,210.14 at framing stores, $278,053.46 at florists and nurseries, and $70,849.02 at donut bakeries.

Other dubious expenditures found by NTU included $936.75 spent at The Corsage Shop, $232.00 at Doris' Beauty Shop, $1,651.27 at The Jean Shop, $348.70 at the Budget Rose Shop, $6,964.55 at Susie's Bake Shoppe, and $3,803.00 at the Westside Barber Shop. In 2000, $12.00 was spent at Ann's Hair & Nail Shop for "other professional services."

Governor Blunt responded by asking the state’s Office of Administration to review the expenditures. The Office of Administration found that the Ann's Bra Shop purchases were legitimate Department of Corrections expenses for special-needs products for female inmates in Missouri’s prison system. Said Governor Blunt in a statement, "This is exactly what we expected and envisioned when we created the MAP site. Transparency and openness help root out wasteful spending and we welcome this scrutiny.”[15]

Government tools

Missouri Accountability Portal provides a database of state financial information, which is searchable by criteria such as expenditures, vendors, contracts, and employee names. The following table is helpful in evaluating the level of transparency provided by Missouri Accountability Portal:

Criteria for evaluating spending databases
State database Searchability Grants Contracts Line item expenditures Dept./agency budgets Public employee salary
Missouri Accountability Portal

Public employee salary information

See also: Mississippi state government salary

Economic stimulus transparency

Missouri received around $482 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[16]

The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the nation. Of that $787 billion stimulus package, it was estimated that 69%, or over $541 billion, would be administered by state governments.[17]

Missouri received an estimated $2,889,357,187 from the [[American Recovery and Reinvestment Plan].[18]

One program, which would use $71 million of the American Recovery and Reinvestment Act funds and ultimately cost $85 million, would expand broadband coverage to 660,000 homes and businesses across the state.[19]

Two Missouri projects were noted in Senator Coburn's and Senator McCain's "Summertime Blues, 100 stimulus projects that give taxpayers the blues" report. Scientists at the University of Missouri received stimulus funds to develop freezing protocols for rat sperm to facilitate the reconstitution of genetics by in vitro fertilization methods.[20] In another project, the Army Corp of Engineers spent over $400,000 to design and build exhibits at the National Great Rivers Museum and other sites outside of St. Louis, Missouri.[20]

Error in ARRP

According to Recovery.gov, federal stimulus funds would go to 884 congressional districts, though there are only 435.[21][22]

Missouri's 14th District, eliminated after the 1930 census, was to receive $600,000 in stimulus money, according to the ARRP website. It was joined by a handful of other non-existent districts to receive stimulus dollars, totaling $928,566 to create/sustain 8.5 jobs.[23]

See also

External links

Additional reading


  1. Associated Press, "700 jobs cut from Missouri payroll: Nixon slashes $204 million from state budget," October 29, 2009
  2. St. Louis Beacon, "Nixon details $105 million in cuts and another $325 million in spending restrictions," June 25, 2009
  3. Associated Press, "700 jobs cut from Missouri payroll: Nixon slashes $204 million from state budget," October 29, 2009
  4. St. Loius Beacon, "Missouri officials say more budget cuts coming, as state borrows more from reserves," October 9, 2009
  5. The Examiner,"No simple solution for state budget trouble," February 25, 2010
  6. St. Louis Childrens,"Missouri Budget Process," accessed March 17,2009
  7. Cite error: Invalid <ref> tag; no text was provided for refs named watchdog
  8. 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 US Government Spending,"Missouri State and Local spending," accessed March 16,2009
  9. Missouri State Auditor Web site, accessed October 29, 2009
  10. Missouri State Treasurer's Office Web site, accessed October 29, 2009
  11. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  12. Missouri Division of Accounting Web site, accessed October 29, 2009
  13. Missour Division of Accounting Web site, accessed October 29, 2009
  14. State of Indiana, “State Credit Ratings-as of June 24, 2009"
  15. St. Louis Business Journal, "Group: $2M of Mo. taxpayer money spent on ‘questionable purposes’," August 29, 2008
  16. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  17. National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
  18. Wall Street Journal,"Stimulus Spending by State," March 12,2009
  19. Missouri Watchdog, Missouri governor announces $71 million more for broadband, Sept. 14, 2010
  20. 20.0 20.1 "Summertime Blues, 100 stimulus projects that give taxpayers the blues" August 2010
  21. $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
  22. Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
  23. Missouri, Watchdog.org, November 17, 2009