JEFFERSON CITY, Mo. – State budget experts and outside consultants are expecting general revenue collections to see an uptick for the next budget year.
On Friday, Gov. Mike Parson, along with current House Budget Committee Chairman Scott Fitzpatrick and Senate Appropriations Chairman Dan Brown, announced the Fiscal Year 2020 Consensus Revenue Estimate.
“Budgets are based on projections. The best way to ensure a balanced budget is to use a conservative but realistic revenue estimate, which I feel is represented in this agreement. I appreciate Governor Parson and Senator Brown’s commitment to fiscal discipline as we enter a new budget cycle,” said Fitzpatrick. He has been tapped as the incoming-state treasurer.
The annual CRE, which is developed by state budget experts and outside consultants, is one of the basic assumptions the Governor and General Assembly use to build a balanced budget.
The CRE is projecting that general revenue collection for FY2020 will go up compared to the current year. Net general revenue collections in FY2020 are estimated to be $9.822 billion. This represents growth of $193 million over the estimated revenue for FY2019. The estimate for FY2020 assumes growth of 2.0 percent. The revised estimate for the current Fiscal Year is $9.629 billion.
“With a low 3 percent unemployment rate in Missouri and jobs available, I think 2 percent growth is realistic and can be attained in Fiscal Year 2020. I am excited about Missouri’s outlook and future. A lot of thought went into this process, and I thank Rep. Fitzpatrick, Gov. Parson, and his staff,” said Brown.
Revenue collections in 2018 have been down overall compared to 2017 collections. State Budget Director Dan Haug announced in December that general revenue collections for 2018 fiscal year-to-date decreased 4.9 percent compared to the same time frame in 2017, from $3.62 billion last year to $3.44 billion this year.
No withholdings have been made on the current fiscal year.
“Maintaining a fiscally responsible budget for our state government is one of the most important and challenging responsibilities for lawmakers, and I want to thank Sen. Brown and Rep. Fitzpatrick for their work on finalizing the revenue estimate,” said Parson. “Missouri is at its best when we work together, and we look forward to creating a budget that will serve all Missourians and continue to move Missouri forward.”