It is always exciting to roll into the new year, with new
resolutions, anticipation and apprehension of what the year will bring. It is no different in the Missouri General
Assembly. We have closed the last
chapter of 2012 and the 96th General Assembly. It is time to look ahead, assess the needs of
our state and begin the yearly process of evaluating and budgeting.
While our state
has seen some tough budget situations in recent years due to our sluggish
economy, we hope those days may soon be behind us as Missouri’s economic engine
starts to rev up. We have seen declining
unemployment rates significantly below the national average and our tax and
regulatory environment has continued to make our state an attractive location
for new businesses. We still have much
work to do if we are going to be competitive
but our past efforts to create a business friendly atmosphere have
helped stabilize our state and give us a sound financial base.
The budget
leaders from the House and Senate recently met with representatives from the
governor’s office to take a look at the direction we are headed for the next
fiscal year that will begin July 1, 2013.
After crunching the numbers they agreed on what is known as a consensus
revenue estimate, which is the amount of money the state can expect to have on
hand for budgetary purposes. The good
news is the estimate for fiscal year 2014 represents an increase of $237
million over the estimate used to prepare the budget for the current fiscal
year. The total amount of general
revenue the state is anticipated to have for the next budget is $7.929
billion. These numbers, of course, are
estimates and can only be used to help guide us through the process. This revenue estimate is based on anticipated
economic growth of 4.8 percent. It also factors
in the several million dollars lost of one-time funding , which will decrease
our available revenue. Overall, it is
good news as every dollar we gain is a dollar we can use to the benefit of
Missouri families. We have had to make
tough decisions in recent years when it comes to cuts in the budget. It is my hope that the 2013 session will make
for an easier budget process as the uptick in revenue will prevent the need for
cuts to critical areas such as education.
Even though we
have reason to be optimistic, we must keep in mind that the past few years have
put us way behind in many areas and the climb back to prosperity may be slow
and tedious. Two or three hundred
million dollars will not stretch far enough to make up for the shortage in the
funding formula for our public schools, the decline in state support for our
public higher education institutions, the diminishing funds for the department
of transportation, the cuts endured by health care providers, capital
improvement needs to our public facilities and the ever- growing cost of
Medicaid. It is obvious that the process
of providing services for the state of Missouri will continue to be a challenge
and the priorities will be debatable, however, we are on the right track and
will continue to do the best we can to spend your money wisely.
As we all assess our priorities, our needs
and our budget for 2013, we may find that we too will have to make decisions
and we may not have everything that we would like to have. I am thankful, however, that we live in a
state and nation that still offers many opportunities and we must remain
optimistic about our future. I would
like to wish you all a very happy and prosperous New Year.
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 401B State Capitol
Building, Jefferson City, MO 65101.
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