Friday, April 23, 2010

Nixon cuts an additional $45 million from budget

Missouri's budget director announced unexpectedly low collections for the current month as of April 20, as income tax payments are being processed. Because of the decline in collections, Gov. Jay Nixon's administration announced that another $45 million in state spending would be curtailed on April 21. Including the most recent withholds, the state has held back more than $900 million originally appropriated for the 2010 fiscal year budget year that ends on June 30. The cuts included $4.9 million to the Parents as Teachers program, bringing its total withhold for the year to nearly $7 million. Luebbering said Missouri's April tax collections were down 19 percent for the first 20 days of the month compared to the same period last year. A major part of the decline was because income taxes paid to the state for 2009 have been below expectations. Income tax payments have dropped 30 percent, while refunds have increased by 8 percent, Luebbering said. "Not only is the average payment down, but the number of payments is down," Luebbering said.

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