Due to conservative budgeting, strong financial management, and a sound economy the state will end Fiscal Year 1997 with substantial fund balances. Tax reductions . Governor Carnahan believes that taxes in Missouri should be kept low. Missouri ranks 45th in the nation in taxes collected per capita by state government. The state and national economy have completed their fourth year of moderate growth.
State finances are in excellent shape.
The first year impact will be slightly less as only 11 months revenue loss will be felt in Fiscal Year 1998. This tax reduction is the fastest and fairest means of cutting taxes to bring state revenues under the constitutional revenue limit for Fiscal Year 1998. The Governor's proposal will improve the equity of the state's tax structure for middle and lower income individuals. Invest in high priority budget initiatives . The budget contains major new investments directed to improve education, crack down on crime, help children and families, and improve our already healthy climate for economic growth.