Fiscal Review A Look at the House of Representatives’ Fiscal Considerations
State Budgeting and Accounting When the legislature convenes each year, it has only one constitutional obligation that it absolutely must complete during the coming five months: the state’s operating budget. Our fiscal year runs from July 1 to June 30 of the next year. Thus, we are currently debating the Fiscal Year 2014 operating budget – a budget which the House of Representatives recently passed and sent to the Senate for their consideration. Upon the Senate’s action, we will likely convene a conference committee which will settle any differences between the House’s version and the Senate’s version before submitting the budget to the Governor for his approval. He has the option to veto, line-item veto (meaning he can reduce or eliminate specific funding items), or approve each budget bill. Appropriations The chart to the right depicts the amount and proportion of funding that each appropriations committee of the House was ultimately responsible for last fiscal year (FY2013). You’ll notice immediately that our largest appropriations are for the various social services and then education (education is required to be at least 25% of our budget, though we appropriate more). Accounting Each year, the Accounting Division of the Office of Administration produces the state’s Comprehensive Annual Financial Report (CAFR). They do this upon completion of the calendar year, which means the most recent is the FY 2012 CAFR. This nearly 200-page document outlines each of Missouri’s assets and liabilities, including those of our institutions of higher education, pension plans, and the like. A quick review reveals some insightful information on how much revenue the state receives from certain sources for governmental activities1 (shown at right). Almost half (48%) of the revenue we receive to operate government programming is from the federal government, while roughly 36% is from state income, sales, and use, taxes. This is helpful when making decisions on legislation that might increase or decrease certain taxes, fees, or grant participation.
Other Taxes 7%
Revenues by Source
Income Taxes 24% Sales & Use Taxes 12% Charges for Services 8%
Grants & Contributio ns 48%
All Other Revenues 1%
There are two categories the auditor segments revenues and expenses to: governmental (like public safety) and business-like (operating the state lottery, for example).
Prepared on behalf of the Committee on Fiscal Review Tom Flanigan (R-163), Chair
Edited by: Sean Grove