We’re entering the final weeks of the legislative session and that means we’re only days away from finalizing the state budget for the next fiscal year. Next week I will give you a breakdown of some of the budget highlights that may be of interest.
But for now, let me just say we are in quite a fortunate situation as a state even as most of the nation faces a bleak economic forecast. Times are tough and they are getting tougher, but here in Missouri we have a much better outlook for the coming fiscal year than the vast majority of states. That is something that may not be apparent to you as an individual citizen struggling to make ends meet, but the strong economy we continue to enjoy provides a number of positives that impact all Missourians in a favorable way.
If you look out across the economic landscape, states all across the country are suffering. According to a recent report issued by the National Conference of State Legisla-tures, 23 states are facing a total budget gap of at least $26 billion for their 2009 budgets. Of the 50 states, 33 are classified as concerned about their economic outlook and four are listed as pessimistic. Only 13 states are listed as having stable or optimistic forecasts for their fiscal year 2009 budgets. Missouri is fortunate to be one of those states as we look at not a budget shortfall but instead our third consecutive year with a budget surplus.
Getting to this point didn’t happen by luck. Just a few years ago we were in the same position so many states today are facing. But we turned a budget shortfall of more than $1 billion into a healthy surplus by reforming a broken system and making the tough choices that would result in a better Missouri for all of us.
One of the most important things we did was to switch our budgeting process to one that is performance-based much like you see in the private sector. That change in philosophy put an emphasis on providing funding to the programs that are working well and not wasting taxpayer dollars on ones that aren’t getting the job done.
We also placed a heavy emphasis on eliminating waste, fraud and abuse from the government system and the many programs that provide critical services to citizens of this state. These changes worked together to pull our state back from the brink of economic disaster and has now positioned us to thrive while so many other states are struggling.
Of course the question to ask is what any of this really means to you. It’s nice to hear that our state is doing well but that has little impact on your daily life as you try to scrape together enough cash to afford to fill your gas tank. Or does it? While our state’s budget surplus can’t stabilize the housing market or bring down the price of oil, it does have a positive impact on your life and the lives of all Missourians. To gain a better understanding of how that is the case we have only to look at other states facing budget crunches right now and how they are working to deal with them.
Right now, there are at least 16 states that plan to reduce spending or eliminate programs to balance their books. In New Jersey they have made nearly $1 billion in cuts to programs and they have also called for no growth in total spending for 2009, which is something that almost never happens in state budgeting. Florida also had to cut $1 billion last October to avert a shortfall in their current budget. In Nevada they have imposed a 4.5 percent cut for all state agencies including K-12 education.
In addition, there are eight states considering tax in-creases to generate the revenue necessary to avoid a shortfall. Their citizens who are already suffering through tough economic times now also face the prospect of having their tax burden increased. I think we can all agree that is not something we want to see here in our own state.
That’s why we are so fortunate to have a healthy budget that allows us to adequately fund our programs and even put some money aside in case of a budgetary emergency. While some may say we have made cuts along the way to get to this point, the truth is our budget has grown steadily each year. This year’s budget will be the largest in the history of our state, but it will be one I know spends taxpayer money in a responsible way that provides results and ensures our programs are performing properly.
Most importantly, we have increased our revenues and generated these budget surpluses without increasing your tax burden. In fact, for a great many Missourians, we have reduced their tax burden in recent years.
So, while other states talk about cutting programs or raising taxes, we are fortunate to be in a position where we don’t have to consider either option. That translates into you not having to worry about the state reducing or eliminating services and remaining comfortable in the knowledge your tax bill is not going to rise.
I’m proud of the things we have done to bring our state to this point and we now have shown we made the right choices for Missouri as we look at the tough times faced by our fellow states. Times are tough for all of us but at least here in Missouri we are better off than most. That’s good news in a time when bad news seems to be the norm.