Missouri is about to exhaust the revenue surplus that lawmakers have used to balance the state budget in recent years, according to a report issued by Missouri Auditor Scott Fitzpatrick on Wednesday. The report states that there will be some surplus remaining at the end of the new fiscal year that starts July 1, but not enough to sustain current spending in the following year.
According to Fitzpatrick, “the state is on track to completely run out of money in the [general revenue fund] and be forced to implement emergency budget reductions — limiting options and maximizing pain for every Missourian and entity who relies on state funded services.”
While Fitzpatrick’s report frames the problem as a spending issue, Democrats contend that recent tax cuts–including cutting the top tax rate and creating an exemption for capital gains–have created a shortfall in revenue to fund state services. The depletion of surplus federal funds received during the COVID-19 pandemic is also contributing to the demands on general revenue.
The report comes as Governor Mike Kehoe is reviewing the $50.7 billion budget that lawmakers passed for Fiscal Year 2027.
To read the full report, please click here.