Some bad news on the economic front for the state of Missouri. Revenue collections slid again in December, falling further behind what will be needed to ensure the state finishes in the black for the fiscal year that ends in June. State Budget Director Linda Luebbering says Governor Nixon is not ready to start withholding funds yet...
“We may have to take additional action, and the governor may have to make additional spending reductions, but we’re not there yet. We’re going to really look closely at January.”
Luebbering says December sales tax figures were four percent below last year’s figures, and personal income tax collection grew just one tenth of one percent in December. But Luebbering says she and other state economists remain bullish on the state economy in the second half of calendar year 2012 and beyond.
Retail analysts in the country and Missouri say the just completed holiday shopping season was a lot busier than expected. But Missouri’s collection of sales taxes for the month of December doesn’t show that trend. State Budget Director Linda Luebbering says, in fact, sales taxes were down a dismal four percent.
“And just to put that in a little more context, last December, we were down 13 percent in sales tax from the year before that. So, it’s not like we had a stellar December sales tax number last year. We did not. So we really have slid on that sales tax number.”
The drop in sales tax and a ten percent drop in the state’s corporate income and franchise tax collections resulted in Missouri revenue collections lagging more than two percent behind last December’s figure. State collections are now running more than a percentage point behind where they need to be at the end of the fiscal year in June.