In May, legislators approved and Gov. Matt Blunt (R) signed an $8.94 billion budget with a $700 million shortfall, expecting tax growth to continue and to use $833 million in surpluses. Instead, corporate income taxes are down 14%, sales taxes are down 8%, with income taxes basically flat at 1% growth. Gov.-elect Jay Nixon (D) has proposed using $281 million from the surplus to close part of the now-$621 million shortfall and will outline the remainder when he takes office on January 12. More on Missouri here.
