Federal tax-cut package 'a wash' for Missouri budget, official says
Contrary to some reports, Missouri's budget chief says that the overall impact of the federal tax-cut bill before Congress will be "a net zero" on the state's finances.
Linda Luebbering said late Thursday that while some business provisions of the bill may cost the state money, other portions are expected to add to Missouri's coffers.
The state will particularly benefit by the additional unemployments for workers without a job for more than 26 weeks (and less than the maximum 99 weeks), she said. Such people will not be seeking additional state aid, if they have federal help.
Overall, Luebbering said her staff and Gov. Jay Nixon are continuing to work on a budget proposal for the coming fiscal year that begins July 1. The executive branch and Republicans who control the Legislature are continuing to negotiate on what the projected state income number will be -- a key figure in determining any state-spending trims.
Luebbering previously has projected that the state will lose close to $700 million in federal stimulus help next year. The state's income figures have been improving, so it's unclear how much of the state's additional revenue might offset some of that $700 million loss.
The state currently is on track to see an income increase of about 3.5 percent for the current fiscal year -- a shift after several years of income declines.