State Budget Practice Report Cards and Budget Resource Guide
Missouri was one of three states in fiscal 2016 through 2018 to receive a D-minus average in budget forecasting—the lowest grade possible (Alabama and North Dakota rounded out the list). Missouri’s shortcomings in the category included failing to make multiyear projections for revenues or expenditures and not using consensus revenue estimates.
During the budget process for fiscal 2018, staff from the house, senate, University of Missouri, and the governor’s Division of Budget and Planning developed a revenue growth estimate for the year of 3.8 percent. Neither the governor nor the legislature accepted the figure, however, and the governor’s budget recommendation was based on estimates from executive branch staff.
Despite the absence of multiyear forecasting, Missouri consistently avoided using one-time actions to achieve balance and earned an A average in budget maneuvers as a result. But it averaged only a C in transparency, as it did not disclose tax expenditures or the cost of deferred infrastructure replacement. The last estimate of tax expenditures was in 2009, when a report on the topic was produced by the University of Missouri Economic and Policy Analysis Research Center.
To emphasize the need for clear and comprehensible budgets to inform citizens, promote responsible policymaking, and improve fiscal stability, the Volcker Alliance in 2016 began a study of budgetary and financial reporting practices of all fifty states. The Volcker Alliance’s mission is to improve the effectiveness of the administration of government at all levels. Making state budgeting more transparent and accountable is an important part of that goal.
The report cards found here contain grades of the state's budgetary practices during the fiscal years of 2016 through 2018. Each state received marks in five critical categories, based on their adherence to best practices in several key budgeting indicators. The five categories covered methods used to achieve budgetary balance as well as how budgets and other financial information are disclosed to the public.
States received grades of A to D-minus (there are no “failed states”) for their procedures in estimating revenues and expenditures; their use of one-time actions to balance budgets; how they oversee and use rainy day funds and other fiscal reserves; the adequacy of their funding of public worker retirement and other postemployment benefits; and the quality of transparency of budget and related financial information. The grades are based on research conducted by public finance and budgeting professors and students at eight US schools of public administration or policy. The universities’ research efforts were augmented by Volcker Alliance staff, data consultants at Municipal Market Analytics, and special project consultants Katherine Barrett and Richard Greene.
State Budget Sources
State Budget Sources: An Annotated Guide to State Budgets, Financial Reports, and Fiscal Analyses is a resource published by the Volcker Alliance designed to help public officials, policy advocates, journalists, academics, and concerned citizens fully understand the critical fiscal decisions that governors and legislators must make. The guide includes the links below to budgets for this state as well as legislative analyses of budget bills and treasurers’ or comptrollers’ monthly state cash-flow statements; capital spending plans; reports on public-worker pension funding and returns; and reports by local and national fiscal research organizations, bond rating firms, and associations of state fiscal and finance officials.