A Moment with Mike for May 7th, 2008

As we enter the final weeks of the legislative session we will soon be finalizing the state budget for the next fiscal year. I will report on some of the highlights of the budget at a later time, but for now, even though I have had some disappointments I must say, we as a state are quite fortunate. 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 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 Legislatures, 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 a third consecutive year with a small surplus instead of a budget shortfall that many states are experiencing. This, of course, did not happen by luck. Just a few short years ago we were in the same position so many states are facing today. We have turned a huge shortfall into a healthy budget by reforming the system and making many tough choices and decisions that have enabled us to climb out of that shortfall.
It is 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 budget outlook can’t stabilize the housing market or bring down the price of oil, it does have a positive impact on your life and lives of all Missourians. Right now there are at least 16 states that plan to reduce spending or eliminate programs to balance their books. Two states have cut over $1 billion in programs and several have called for no growth in total spending for 2009 which is something that almost never happens in state budgeting. Some have cut money for state agencies including education and at least 8 states are considering large tax increases to generate the revenue necessary to avoid a shortfall. Their citizens who are already suffering through tough economic times may now face the prospect of having their tax burden increased.
We are fortunate to have a healthy budget that allows us to adequately fund our programs and put money aside for budgetary emergencies. 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. Times are tough for all of us but at least here in Missouri we are better off than most.
If you have questions, you may reach me at my Capitol number 573-751-9465, at the local district number, 660-582-4014, by email at mike.thomson@house.mo.gov or by mail at Room 406A State Capitol Building, Jefferson City, MO 65101.