TO:  MTC Members

FROM:  Dale Amick - MTC Legislative Consultant

[ CLICK HERE to view the January 4, 2007 Legislative Status Report ]

The Missouri General Assembly convened its 2007 legislative session January 3rd with the usual pomp and ceremony.

Governor Matt Blunt is scheduled to deliver his legislative and budget address January 24th.

The Senate and House appropriation committees are expected to get down to business rather quickly, hearing from state departments on various aspects of their budgets. The committees will not begin formally considering the governor's proposed budget until after his January 24th address.

Between 300-500 million dollars in new tax revenue may be available this year to the appropriations committees to dole out to state services and programs. Public education will receive a huge chunk of that new money due to the new state education funding formula passed in 2005, which mandates increases in public education funding annually.

In addition, the cost of delivering social services is expected to rise and that may take another hefty bite out of the extra tax revenue.

There is a good indication the governor may raise his recommendation for spending by the State Division of Tourism this year as well.

And both the governor and legislative leaders are keenly interested in passing a tax cut this year, especially to end state taxation of Social Security income.