JEFFERSON CITY Missouri's state budget would lose millions in federal dollars if the nation falls over the fiscal cliff, and state taxes also would shift altering the amount of revenue coming in, a new report shows.
The so-called fiscal cliff a series of expiring tax measures, coupled with deep budget cuts that will take effect unless Congress reaches a compromise is scheduled to hit at the beginning of 2013.
If it does, Missouri would lose federal grants equal to 7.2 percent of state revenue. That's more than $500 million that funds programs such as the Women, Infant and Children nutritional program, as well as federally funded research projects at Missouri colleges and universities.
Missouri also would see a higher-than-average impact from cuts to federal spending on procurement and wages, as well as federal defense spending, according to the Pew Center on the States report.
On top of that, Missouri is one of six states where state income tax is linked to federal income tax Missourians can qualify for a state deduction to cover the federal increase, so that would lead to a drop in state revenue collections.
Meanwhile, Missourians could see other state taxes increase that are also tied to federal taxes.
"Almost all states have tax codes linked to the federal code in some way," said Anne Stauffer, project director at the Pew Center. …