US EditionState revenue projected to drop in current fiscal year
Missouri expects a 2.1% revenue decline in FY2026 mainly due to capital gains tax cuts, with general revenue projected at $13.15 billion, followed by modest growth in FY2027.
- Wednesday's revised estimate shows Missouri general revenue contracting 2.1% in fiscal year 2026 to $13.15 billion, with officials warning this will pose budget challenges.
- Lawmakers' recent tax changes, including the capital gains exemption, and the winding down of federal COVID-19 relief funding are driving Missouri's projected revenue decline.
- FY2027 is expected to rebound modestly, with projected collections of $13.15 billion, though the consensus revenue estimate remains $400 million below last year's forecast.
- The current budget after Kehoe's vetoes projects $15.7 billion in spending, about $2.6 billion more than revised revenue estimates, while the Office of Administration’s Division of Budget and Planning warns of a $1 billion shortfall starting in FY2027.
- Despite a prior surplus that peaked near $8 billion in June 2023, Gov. Mike Kehoe has said eliminating the state income tax, which accounts for about 65% of general revenue, is a top goal amid a top tax-rate path toward 4.5%.
13 Articles
13 Articles
Springfield News-Leader
Missouri faces budget crunch as tax cut hits harder than estimate
The state now expects a revenue loss in the current fiscal year of about $500 million, three times more than what was claimed when the tax cut passed.
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.
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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