Gov. Jay Nixon was joined today by Senate Appropriations Chairman Rob Mayer and House Budget Chairman Allen Icet in announcing the state's Consensus Revenue Estimate (CRE) for Fiscal Year 2011, which begins July 1, 2010. The leaders also announced an adjusted CRE for the current fiscal year.
The annual CRE is a bipartisan figure established by state budget experts and outside consultants that provides one of the basic assumptions the Governor and legislative leaders use to build Missouri's budget.
The key figure in today's CRE is the projected general revenue collection for FY 2011. Net general revenue collections in FY 2011 are expected to be $7.223 billion. Although this figure represents moderate revenue growth from the estimated revenue for FY 2010, it would still result in revenue collections about $780 million below actual collections in FY 2008.
Budget planners believe modest revenue growth is possible in FY 2011 as the national economy begins to recover from the worst recession since the 1930s. Although the current economy remains fragile, industrial production is beginning to increase. As a result, employment declines are expected to begin reversing next year, and consumer spending will increase accordingly. However, the national recovery may be slower than those of the past because of the damage done to the global financial sector, which has limited access to capital.
"By continuing to work in a bipartisan fashion, we will ensure Missouri's budget makes the right investment to preserve vital services and move our economy forward," Gov. Nixon said. "I appreciate the hard work of Senator Mayer and Representative Icet that has made this agreement possible."
Important points in the FY 2011 CRE include:
- General Revenue collections in FY 2011, net of any refunds to taxpayers, are estimated to be $7.223 billion.
- The adjusted CRE for FY 2010 is $6.971 billion, $480 million less than actual collections for FY 2009. FY 2009 is the only year in modern history where revenues have fallen at a faster pace.
"Revenue forecasts call for a leaner State budget, and difficult decisions will need to be made this session," Sen. Mayer said. "However, Governor Nixon, House Budget Chairman Allen Icet and I will continue to work diligently toward a fiscally responsible Missouri budget."
"Even with a positive CRE for the 2011 budget, the State still faces financial challenges to meet our constitutional responsibility of a balanced budget," Rep. Icet said. "I look forward to working with the Governor and the Senate to achieve that end."
Gov. Nixon will detail his proposed budget for FY 2011 during his State of the State address in late January.