Thursday, June 07, 2018

Auditor: State revenues in compliance with Hancock Amendment

(From State Auditor Nicole Galloway)

Missouri State Auditor Nicole Galloway today released a report detailing the office's annual review of state compliance with the state constitutional limits on taxing and expenditures, commonly known as the Hancock Amendment. The 1980 amendment to the Missouri Constitution restricts the amount by which fees and taxes can be increased and also limits the amount of personal income used to fund state government.

The Hancock Amendment limits the amount of Missourians' income that may be used to fund state government to no greater than the portion used to do so in 1981, except as authorized by a vote of the people. For the 2017 fiscal year, total state revenue was approximately $4.2 billion under the refund threshold. As a result, the state was found to be in compliance. Missouri has not exceeded the limit since 1999.

The Hancock Amendment also limits the amount the General Assembly may raise taxes or fees through new legislation without a vote of the people. The projected increase of taxes or fees was less than the 2017 fiscal year limit of $101.5 million.

A complete copy of the office's review of state compliance with the Hancock amendment can be found here.

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