US EditionState revenue projected to drop in current fiscal year
Missouri's FY2026 revenue is projected to drop 2.1% due to recent tax cuts, with a modest 3.8% rebound expected in FY2027 amid budget challenges, officials said.
- On Wednesday, Missouri's consensus revenue estimate projects a 2.1% decrease in FY2026 to $13.15 billion, with modest growth to $13.65 billion in FY2027, Gov. Mike Kehoe says.
- Tax changes this year, including a capital gains exemption and top income tax rate reductions, plus fading federal COVID relief, left Missouri Department of Revenue revenues more exposed.
- Budget documents show reserves were used as estimates put the current-year revenue loss at about $500 million, with ongoing losses near $360 million, and independent estimates near $600 million, warning FY2027 losses could reach $625 million.
- With spending projected higher than receipts, current budget after Kehoe's vetoes projects $15.7 billion spending, $2.6 billion above estimates, while Missouri lawmakers face $1 billion in department budget requests and Gov. Mike Kehoe will include some surplus funds.
- Budget officials warn that a $1 billion shortfall starting in FY2027 could force service cuts, as Gov. Mike Kehoe aims to eliminate the income tax, which accounts for about 65% of revenue.
11 Articles
11 Articles
Missouri budget shortfall worse than governor projected
By Rudi Keller Missouri Independent The capital gains tax cut passed this year by Missouri lawmakers will cost far more than expected and shrink state… Login to continue reading Login Sign up for complimentary access Sign Up Now Close The post Missouri budget shortfall worse than governor projected appeared first on The Examiner.
Missouri Independent
Missouri faces budget crunch as capital gains tax cut hits harder than expected
Missouri's revenues will shrink this year, creating new challenges for the state budget, Gov. Mike Kehoe said in when the consensus revenue estimate was announced Wednesday. He is shown in May when he announced a special legislative session to consider disaster relief, stadium funding and spending items (Annelise Hanshaw/Missouri Independent).The capital gains tax cut passed this year by Missouri lawmakers will cost far more than expected and sh…
State revenue projected to drop in current fiscal year
COLUMBIA, Mo. (KMIZ) Missouri's general revenue collection is expected to drop in fiscal 2026 compared to the previous year, according to a revenue estimate released by Gov. Mike Kehoe's office on Wednesday. The estimate projects a 2.1% decrease in general revenue collection compared to the previous fiscal year. Missouri's current fiscal year ends June 30. The release did not detail in which areas collections had lagged. A governor's office spok…
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