Missouri is looking for other sources of money for education and health care after experiencing shortfalls in gambling and tobacco revenues.
So far, about 200 employees at the Missouri National Guard have been furloughed and more could be on the way if a deal isn’t reached in the coming days.
One state department that would face potentially severe consequences of a government shutdown would be the Department of Elementary and Secondary Education.
Missouri tax revenues rose slightly last month, thanks to solid growth in income tax collections.
Missouri’s finances could take a $60 million annual hit because of a recent 2 percentage point increase in federal Social Security payroll taxes, according to the state’s budget director.
Figures released Friday by the Office of Administration show net general collections totaled $3.77 billion from July through December.
The governor plans to use the figures to bolster his argument that the state should embrace a key part of President Obama’s health care law.
Project also includes work at Supreme Court building
A billion-dollar bump to the budget may seem to contradict the hullabaloo about the state’s tight finances.
State budget director Linda Luebbering says much of the hole is due to a reduction in federal money, such as stimulus funds and Medicaid payments.