Missouri state budget (2010-2011)

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At the start of the fiscal year it was estimated that the state of Missouri would face a budget shortfall ranging between $600 million and $1 billion by 2012, with the state predicting the smaller figure and the Missouri Budget Project the higher estimate.[1]

Missouri received $860 million form the American Recovery and Reinvestment Act.[2]

A 2011 analysis by the Missouri Watchdog of the state’s financial reports over the previous five years revealed an increase in state spending of 20.4%.[3]

Going into the fiscal year Missouri had a total state debt of $18,249,257,963 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.[4]


2011 State spending & deficit in billions[5]
Total spending Human services Education Protection Transport Other
$23.8 $10 $6.6 $1.57 $2.6 $2.9
2011 Local spending & deficit in billions[6]
Total spending Pension Healthcare Education Welfare Protection Transport Deficit
$29.9 $0.6 $1.9 $11 $0.7 $2.7 $2.2 $21.2

Fiscal Year 2011 State Budget

See also: Archived Missouri state budgets

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government here (dead link).

Net general revenue collections increased 4.6 percent in the first half of FY2011.[7] When announcing the figures, Missouri Budget Director Linda Luebbering said that no further cuts would be needed in the fiscal year.[7]

With the increase in revenues, in January 2011 Gov. Nixon released $7.5 million in state funding for school districts to use for transportation.[8] The funds came from $70 million in transportation funds he withheld from districts last year to help balance the budget.[8]

In Dec. 2010, the National Conference of State Legislatures said that the state faced a midyear shortfall of $300 million, which represented 3.8% of the FY2011 state budget.[9]

A special House budget committee reviewed state budgets looking for ways to cut costs before lawmakers returned for their annual session which started in January 2011 in anticipation of a budget hole of several hundred million dollars.[10]

The federal stimulus bill provided the state with $292 million for Medicaid and $189.7 million for education, which was expected to save 3,000 jobs across the state.[11]

Gov. Jay Nixon proposed a nearly $23.9 billion operating budget in January, 2010, but tax revenues continued to decline following the governor's proposal. The House of Representatives and Senate negotiated a $23 billion state budget for Fiscal Year 2011.[12] State officials said, however, that they were uncertain about when — or if — Missouri would receive an extension of federal stimulus money, and that they were also concerned about declining revenues. Given those factors, Nixon said that an additional $500 million needed to be trimmed from his budget plan.[12] The budget crafted by legislators did not appear to meet the cuts called for to balance the FY 2011 budget.[12] In terms of revenue sources, the budget assumed that education would reap $3 from increased lottery game sales for every $1 of advertising spent by the state. Budget negotiators agreed to boost advertising for the Missouri Lottery by $8 million — a more than sixfold increase, although it decreased the tourism's budget by 40%.[12] In the budget approved by the legislature on April 29, 201, state funds, mostly derived from taxes, constituted about $7.8 billion —$484.2 million less than the recommendation Governor Nixon put forward in January.[13] Lawmakers also held state funding for schools steady at just over $3 billion, a move not in keeping with the state’s formula for K-12 education funding, which called for a $106 million increase. In his budget, Nixon had proposed an $18 million increase.[13]

Net general revenue collections declined in Missouri to 9.1 percent to $6.77 billion for fiscal year 2010.[14]

In October 2010, the state still faced an estimated budget shortfall of $400 to $900 million for fiscal 2012, but revenue collections in Missouri were on the rise. Despite the attention given to budget cuts, analysis showed state government spending actually continued to increase. However, over the previous decade Missouri had seen a $1 billion loss in revenue.[15]

Corporate income and corporate franchise tax collections increased 15.5 percent to $13.5 million for the fiscal year-to-date compared to $113 million the previous year.[16]

Budget background

See also: Missouri state budget

Missouri's fiscal year begins July 1 and ends June 30th 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 their 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 were then forwarded to the Governor who had line item veto power and can reduce or eliminate any amount of funding for any item in a bill before signing it into law.[17]

Budget figures

State spending from the general fund for fiscal 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.[3]

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[18] $176.7[18]
2001 $30.5[18] $182.4[18]
2002 $33.0[18] $188.4[18]
2003 $34.3[18] $195.5[18]
2004 $35.6[18] $204.9[18]
2005 $37.2[18] $213.0[18]
2006 $39.5[18] $220.1[18]
2007 $41.9[18] $229.5[18]
2008 $44.5[18] $239.2[18]
2009 $47.3*[18] $249.4*[18]
  • NOTE: The figures for FY 2009 were not yet finalized.

Accounting principles

See also: Missouri government accounting principles

Susan Montee was elected Missouri State Auditor in November of 2006. The State Auditor's Office was 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 did not had a county auditor. The State Auditor may also be called on to audit local units of government by citizen petition. On average, 20 audits of local government entities were performed each year. Missouri's audit reports were published online.[19][20]

Missouri Treasurer Clint Zweifel was the State of Missouri's Chief Financial Officer, elected in November of 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.[21]

The Institute for Truth in Accounting (IFTA) rates 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.[22] Missouri's CAFRs were published online by the Missouri Division of Accounting.[23][24]

The Missouri Division of Accounting was responsible for operation of the statewide accounting and payroll systems and was 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.[25]

Credit Rating Fitch Moody's S&P
Missouri[26] AAA Aaa AAA

Budget transparency

Missouri Accountability Portal was the name of the publicly available website created by the Missouri government. It discloses information about the 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.

News

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, bra 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 doughnut bakeries.

Other dubious expenditures found by NTU include $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, which 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 was 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.”[27]

Government tools

Missouri Accountability Portal provided a database of state financial information, which was searchable by criteria such as expenditures, vendors, contracts, and employee names. The following table was 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
{{{1}}}
{{{1}}}
{{{1}}}
{{{1}}}
{{{1}}}
{{{1}}}
See also: Evaluation of Missouri state website

Limitations and Suggestions


Ed Martin speaks about Missouri's online spending portal

National Taxpayers Union noted that "Unfortunately, MAP only goes so far in telling you what was actually behind the expenditures. Often, the spending record data would dead-end at 'professional services,' 'supplies,' or 'non-contract purchases.' While it's possible that some of these purchases were fairly innocuous, the name of the vendor alone gives reason for taxpayers to at least question the expense. The next step for MAP should be posting line-item information from purchase receipts on the spending portal. Taxpayers need to see exactly how those funds were spent."[28]

Public employee salary information

See also: Mississippi state government salary

The Missouri Accountability Portal provided information about state employees pay. Users can view pay information about the employees of the State of Missouri by their Agency of employment, Position Title or Employee Name. The provides gross pay amounts by the last pay cycle and year to date.

The Better Government Association offers a searchable database of selected public payrolls. The BGA database includes salaries of employees of the State of Missouri along with the states of Illinois and Indiana.[29]

Economic stimulus transparency

Missouri received around $482 million from the federal government under HR 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[30][31]

The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it was estimated that 69%, or over $541 billion, would be administered by state governments.[32]

Missouri received an estimated $2,889,357,187 from the [[American Recovery and Reinvestment Plan].[33]

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.[34]

Missouri, along with two partners, plan to spend $85 million to expand the availability of broadband, connecting 660,000 homes and businesses across the state.[35]

  • Missouri established an economic recovery website to show how legislators and government officials in Missouri were spending Federal funds.[36]

Two Missouri projects were noted in Senator Coburn 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.[37] In another project, the Army Corp of Engineers spent over $400,000 on to design and build exhibits at the National Great Rivers Museum and other sites outside of St. Louis, Missouri.[37]

See also

External links

Additional reading

References

  1. Missouri Watchdog, Missouri could face budget shortfall of $1 billion in 2012, Aug. 6, 2010
  2. Watchdog, Missouri could face budget shortfall of $600 million in 2012, July 22, 2010
  3. Cite error: Invalid <ref> tag; no text was provided for refs named watchdog
  4. State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
  5. Office of Administration, Budget Summary
  6. USA Spending, State Guesstimated* Government Spending
  7. 7.0 7.1 Watchdog.org "Missouri was ‘slowly recovering,’ says budget director " Jan. 5, 2011
  8. 8.0 8.1 The Kansas City Star "Nixon releases $7.5 million in state funding to help Missouri school districts" Jan. 13, 2011 (dead link)
  9. The Wall Street Journal “States Face Budget Shortfalls of $26.7 Billion“ Dec. 8, 2010
  10. Businessweek "Mo. lawmakers review budgets for elected officials" Dec. 8, 2010
  11. The Springfield News-Leader "Emergency bill gives Missouri $481.7 million to help retain public workers" Aug. 11, 2010
  12. 12.0 12.1 12.2 12.3 News-leader.com "More cuts may be needed to $23B Missouri budget" April 27, 2010
  13. 13.0 13.1 Kansas City Star "Missouri finishes budget a week early" April 29, 2010
  14. Missouri Watchdog, Revenue in Missouri continues to decline; Glimmer of hope, July 2, 2010
  15. Watchdog, Missouri revenue down $1 billion since 2000, Nov. 9, 2010
  16. "Missouri revenue increases, while shortfall remains for 2012," Missouri Watchdog, October 4, 2010
  17. St. Louis Childrens, "Missouri Budget Process," accessed March 17,2009
  18. 18.00 18.01 18.02 18.03 18.04 18.05 18.06 18.07 18.08 18.09 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 US Government Spending, "Missouri State and Local spending," accessed March 16,2009
  19. Missouri State Auditor Web site, accessed October 29, 2009
  20. audit reports (dead link)
  21. Missouri State Treasurer's Office Web site, accessed October 29, 2009
  22. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  23. Missouri Division of Accounting Web site, accessed October 29, 2009
  24. CAFRs
  25. Missour Division of Accounting Web site, accessed October 29, 2009
  26. State of Indiana, “State Credit Ratings-as of June 24, 2009"
  27. St. Louis Business Journal, "Group: $2M of Mo. taxpayer money spent on ‘questionable purposes’," August 29, 2008
  28. National Taxpayers Union, "Missouri Tax Dollars Spent at Beauty Salons, Bra Shops, and Donut Bakeries, Review Finds," August 29, 2008
  29. Better Government Association searchable database of selected public payrolls
  30. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  31. H.R. 1586
  32. National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
  33. Wall Street Journal, "Stimulus Spending by State," March 12,2009
  34. Missouri Watchdog, Missouri governor announces $71 million more for broadband, Sept. 14, 2010
  35. Watchdog, Missouri governor announces $85 million to expand broadband, Aug 19, 2010
  36. Missouri Economic Recovery site
  37. 37.0 37.1 "Summertime Blues, 100 stimulus projects that give taxpayers the blues" August 2010