A new analysis by the Missouri Budget Project finds that once the numerous tax breaks passed during
the 2014 legislative session are fully implemented, Missouri would be
more than $2 billion short of the revenue needed to fund services at
FY2014 levels and fully fund the education formula.

A new analysis by the Missouri Budget Project finds that once the numerous tax breaks passed during
the 2014 legislative session are fully implemented, Missouri would be
more than $2 billion short of the revenue needed to fund services at
FY2014 levels and fully fund the education formula.

"Since the 2008 recession, Missouri has significantly cut
public health and mental health services, and child protection
caseloads have skyrocketed," said Amy Blouin, Executive
Director of the Missouri Budget Project. "Yet as a result of
this session's tax cuts, Missouri will be far short of being
able to even maintain this already anemic level of services, and fully
fund education, as repeatedly promised by legislators;
Missouri is facing severe budget shortfalls in the future that are only
made worse by this year's tax cuts, which will cost more than
$800 million annually by even the most conservative measures. These
shortfalls come on top of the budget holes facing the state as a result
of weak general revenue growth since fiscal year 2008 and missed
revenue projections for fiscal year 2014."


"Adjusted for inflation, Missouri is already far short of its
2008 spending power," continued Blouin. "Enacting
tax cuts at this time is like buying a new sports car when you
haven't had a raise in years and can't even pay the
rent."
The lack of the revenue necessary to deliver quality education, health,
infrastructure, and other critical services will compromise
Missouri’s ability to compete for and maintain 21st century
jobs and will slow the state's economic growth. While the
biggest tax cut is scheduled to go into effect in 2017, several
additional budget-busting tax cuts have been vetoed by the Governor,
though the legislature faces the opportunity to override those vetoes
in September.

The full report, Missouri Revenue: Digging Out from a Hole Only to Go
Over a Tax Cut Cliff can be found at
http://capwiz.com/mobudget/utr/1/NQUBTWSPZO/OIOPTWSRUL/10445249496. 
The Missouri Budget Project is a nonprofit public policy analysis
organization that analyzes state budget, tax, and economic issues.