Evaluating Missouri’s Strong Economy
Through the end of Wednesday, Feb. 20, Missouri’s year-to-date net general revenue collection is down by 5.35 percent — about $310 million less than during the same timeframe in the previous fiscal year. However, about one month ago state general revenue collection was down by 10.1 percent — about $536 million less than during the same timeframe in the previous fiscal year. Though we are still down from last year, revenues are clearly beginning to move in the right direction. That’s certainly encouraging. Further, I believe there’s strong evidence we’ll see this trend continue in the coming months.
It’s important to keep in mind that the average Missourian’s overall income tax bill is lower for 2018 than it was for 2017. Recent tax cuts at the federal and state level are coming through to the benefit of many Missouri taxpayers. In the third quarter of 2018, Missouri’s average personal income increased by 2.1 percent at an annual rate, according to estimates released by the U.S. Bureau of Economic Analysis. That’s also really encouraging, both because it bodes well for future revenue growth in the state budget and because it means the economy is continuing to expand. Average Missourians are benefiting from our state’s strong economic position.
Historically, Missouri is usually one of the last states to be affected by a nationwide economic downturn. That’s partly due to our diverse economy. No single industry dominates Missouri’s private sector, which helps insulate our state from the worst effects of a commercial slump. I think we have plenty of reasons to be optimistic about the future of Missouri’s economic environment.
As always, please feel free to call, email or write with your ideas or concerns. My Capitol office number is (573) 751-1415, my email is dan.hegeman@senate.mo.gov and my mailing address is Room 332, State Capitol Building, Jefferson City, MO 65101.