Gov. Jay Nixon was joined today by Senate Appropriations Chairman Rob Mayer and House Budget Chairman Ryan Silvey in announcing the state's Consensus Revenue Estimate (CRE) for Fiscal Year 2012, which begins July 1, 2011.
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 2012. Net general revenue collections in FY 2012 are expected to be $7.295 billion. Although this figure represents moderate revenue growth from the estimated revenue for FY 2011, it would still result in revenue collections about $700 million below actual collections in FY 2008.
Budget planners believe modest revenue growth is likely in FY 2012 as the national economy recovers from the worst recession since the 1930s. The national economic picture is beginning to brighten and there is reason to believe the economy will continue to improve despite lingering uncertainties. As a result, employment gains are expected to accelerate next year, and consumer spending will increase accordingly. However, the national recovery may be hampered by ongoing concerns in the global financial sector.
"By continuing to work together in a bipartisan fashion, we will ensure Missouri's budget remains balanced and makes the right investments to preserve vital services for our citizens and move our economy forward," Gov. Nixon said. "I appreciate the hard work of Senator Mayer and Representative Silvey that has made this agreement possible."
"Revenue forecasts call for a leaner State budget, and difficult decisions will need to be made this session," Sen. Mayer said. "However, Governor Nixon, the House and the Senate will continue to work diligently toward a fiscally responsible Missouri budget."
"Even with a positive CRE for the 2012 budget, the State still faces financial challenges to meet our constitutional responsibility of a balanced budget," Rep. Silvey 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 2012 during his State of the State address in late January.