State revenue up 4.4 percent in December

JEFFERSON CITY, Mo. -- State revenue through the first half of Missouri's fiscal year was up 4.4 percent compared with the same period the previous year, the state Office of Administration said Friday.

Net general revenue increased from $3.43 billion last year to $3.58 billion for the 2007 fiscal year, which ends June 30. Revenue for December alone increased 1 percent, from $646.9 million to $653.6 million.

Lawmakers had budgeted for a 4.5 percent growth rate, but that was set before last year's tax revenue came in higher than expected. This means the state can still make its budget even if revenue grows more slowly than projected.

Gross state revenue, before being offset by tax refunds, were up 3.1 percent through the first six months of the fiscal year. That's below the average over the last 10 years, administration commissioner Mike Keathley said in a written statement.

One reason net revenue were up by a higher percentage is that tax refunds so far are lower than last year.

Individual income tax collections, which account for more than 60 percent of state general revenue, increased 5.5 percent for the year to $2.33 billion. The December growth was 3 percent, but Keathley said withholding taxes appeared to be improving in December, indicating employment growth.

Sales taxes, which amount to about one-quarter of collections, increased 1.2 percent to $994.9 million for the fiscal year to date. For December, however, sales tax collections were down 0.8 percent compared with December 2005.

Corporate income collections dropped 6.7 percent to $275.3 million for the fiscal year, but they were up 13.3 percent in December.

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On the Net:

Office of Administration: http://www.oa.mo.gov