09/30/2024 - Jefferson City, MO
Missouri State Auditor
Scott Fitzpatrick today released his office's annual review of state
compliance with 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 does not
allow a greater portion of Missourians' personal income to be used to fund
state government than was the case in fiscal year 1981, except as authorized by
a vote of the people. For the 2023 fiscal year, total state revenue amounted to
approximately $15.1 billion and Missouri personal income totaled more than $341
billion. The 1981 base year ratio of personal income to total state revenue is
5.6% which produces a refund threshold for 2023 of slightly more than $19.5
billion. As a result, the state was in compliance with the Hancock Amendment as
total state revenue was approximately $4.4 billion under the refund threshold.
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. For Fiscal Year 2023 the state had a taxes and
fees increase limit of $132.8 million. Based on estimates from the Office of
Administration, the state was actually projected to see taxes and fees decrease
by $773.2 million, which puts the state in compliance with the Hancock Amendment.
A complete copy of the office's
review of state compliance with the Hancock amendment can be found here.
