A tale of two widely different state budgets: Weak in Kansas, strong in Missouri

Missouri legislators have plenty to debate during their veto session starting Wednesday. But one major topic fortunately won’t be on that list: how to balance the state budget.

Unlike Kansas — where excessive income tax cuts have badly damaged the state’s finances since 2013 — Missouri has benefited from solid fiscal leadership provided by Gov. Jay Nixon, his budget staff and some money-savvy lawmakers.

In the 2015 fiscal year, for instance, Missouri’s total general fund revenues climbed 7 percent over 2014.

But Kansas’ revenues were up a dismal 1.5 percent in that time, held down by lower than expected sales and income tax receipts.

The trend has continued in the first two months of the 2016 fiscal year, which began July 1 in both states.

▪ Missouri’s total tax collections are 6 percent ahead of last year. Sales and use tax revenue is up 5 percent, while individual income tax receipts are up 6.7 percent.

▪ In Kansas, however, collections are only 1.25 percent higher than last year.

Sales and use tax receipts are up 7 percent, but that’s only because the state hiked its sales tax rate. Individual income tax revenue is only 2 percent higher.

Because of the tax-cut fiasco, Kansas each month anxiously watches to see how much money it will have to pay for basic state services. Missouri currently has no similar concerns, thanks to better stewardship of public dollars.

This story was originally published September 15, 2015 at 5:53 PM with the headline "A tale of two widely different state budgets: Weak in Kansas, strong in Missouri."