The Missouri House passed a tax cut bill that will decrease state revenue by over $420 million. The bill includes a 100% deduction of capital gains income from state income taxes, increased limits for the 'circuit breaker' property tax relief program, and sales tax exemptions for diapers and feminine hygiene products.
Republicans support the cuts while Democrats express concerns about the state's budget. A meeting to finalize the state budget was delayed due to disagreements between the House and Senate, primarily concerning school funding and a school voucher program. The Senate's budget includes $300 million more for school funding than the House's version and eliminates the governor's $50 million plan for a school voucher program expansion. Other discrepancies include funding for capital projects, state university funding, and state employee raises.
The Senate's budget plan includes over $500 million in new capital spending, exceeding both the House's plan and the governor's proposal. Specific projects include funding for railroad crossing safety, renovations at a National Guard center, flood plain improvements, and redevelopment of a historic commercial district.
Key disagreements remain on school funding, where the Senate fully funds the existing formula while the House, aligning with the governor, proposes a $300 million reduction. Differences also exist on state university funding, state employee raises, and the school voucher program expansion. The state has a general revenue surplus of nearly $4 billion. The tax cut bill is House Bill 594.