By BRENT MARTIN
St. Joseph Post
Missouri State Sen. Dan Hegeman of Cosby says while legislative leaders expect the state budget to grow by two percent in the next fiscal year, that growth isn’t as important as the balances in the current budget.
Hegeman, the Senate Appropriations Committee chair, has agreed with Gov. Mike Parson and the House Budget Committee chair, Rep. Cody Smith of Carthage, on a consensus revenue estimate that projects a 2.1% growth in state revenue.
“But this year with so great balances in many of these funds, I see that as less of a tool to help guide us this year than the actual fund balances themselves that we’ll be working with,” Hegeman tells KFEQ/St. Joseph Post.
Hegeman credits the governor for guiding the state through the difficulties of the coronavirus pandemic.
“In that process, we’ve been able to actually gain in our General Revenue receipts, rather than decline.”
Hegeman is more pleased that the state General Revenue budget has a current balance of approximately $2 billion than in the projected growth in tax revenue next year.
“We’ve been looking at about a $2 billion fund balance in the General Revenue. It kind of bounces around,” Hegeman says, adding tax revenue has come in about 20% higher than anticipated.
Hegeman says the legislature must spend the extra money wisely. The legislature also must consider how best to use the $2.8 billion allocated Missouri from the American Rescue Plan, approved by Congress as part of national coronavirus relief and recovery.
Hegeman says Gov. Parson has already suggested spending $400 million to expand broadband in hard-to-reach parts of Missouri. Other infrastructure needs qualify as well, according to Hegeman.
“We can use it for water programs and water projects, infrastructure,” Hegeman says. “We can use it for wastewater infrastructure and then we can use it to replace state revenues that were lost due to the COVID situation. Conservative figuring, I think we figure that to be around $800 to 900 million.”