State auditor says Missouri needs to be more prepared for recession

1 month 2 weeks 6 days ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 7:13:00 PM CDT October 15, 2019 in News
By: Stephanie LaChance, KOMU 8 Reporter
loading
JEFFERSON CITY- Missouri State Auditor Nicole Galloway said Tuesday Missouri is in no shape to handle a recession if financial disaster should hit.
Galloway, a Democrat running for governor, released a state audit of the state's rainy day fund. Galloway said Missouri has no preparation if a crisis happens. 
The audit says that at the beginning of 2018, the state budget reserve fund had a balance of $616 million dollars. Galloway said the state borrowed more than $500 million from the fund by the end of fiscal year 2019 in June.
The budget reserve fund was put into effect by the legislature in 2000, and was supposed to be used when Missouri faces emergencies. 
Emergencies can take the shape of recession or natural disasters. 
According to her audit, the fund is now being used for cash flow to pay out Missouri’s needs like payroll, tax returns and government programs. 
Galloway wants the legislature to create a new separate fund in case of recession. 
“I think this has to be a high priority,” Galloway said. “When we are in the middle of an economic downturn, it’s too late.” 
Republican Governor Mike Parson's chief of staff said this is a part of the Democrat's playbook attacking Parson before an election year.
“She opposes pro-growth policies that have led to the largest increase in real incomes, historically low unemployment, and nearly 40,000 new jobs created in Missouri,” Aaron Willard said.
Galloway said she wants the legislature to plan in advance, especially when it comes to saving.
“What the state is doing does not make sense and is not being fiscally responsible,” Galloway said.
Her audit states Missouri ranks 43rd when it comes to being prepared for a recession.

More News

Grid
List
(CNN) -- Winter is coming — for our French fries. Unusually cold and wet weather during the potato harvest... More >>
1 day ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 3:51:00 PM CST December 03, 2019 in News
COLUMBIA - Despite a disappointing end to the year, MU football has reasons to be optimistic for the future. ... More >>
1 day ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 2:26:00 PM CST December 03, 2019 in News
CAPE GIRARDEAU, Mo. (AP) — A dog who was dubbed the unicorn puppy because of a tail-like growth between his... More >>
1 day ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 1:49:07 PM CST December 03, 2019 in News
SPRINGFIELD, Mo. (AP) — A federal judge has ruled that an 1851 maritime law does not protect a company from... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 1:25:00 PM CST December 03, 2019 in News
COLUMBIA - Police have now released photos and are asking for assistance in identifying a suspect who ran into a... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 1:00:00 PM CST December 03, 2019 in News
CAMDEN COUNTY - Prosecutors filed charges on November 27 against a man deputies say committed numerous child sex crimes. ... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 12:34:00 PM CST December 03, 2019 in Continuous News
Kamala Harris is ending her bid for the Democratic presidential nomination in 2020. She told supporters in an email Tuesday... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 12:13:00 PM CST December 03, 2019 in News
ST. LOUIS (AP) — Interest in medical marijuana use has far outpaced expectations only five months into Missouri’s new program.... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 12:10:00 PM CST December 03, 2019 in News
COLUMBIA— Holiday season is around the corner and it is of no surprise that the Columbia Post Office is seeing... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 11:28:00 AM CST December 03, 2019 in News
COOPER COUNTY - Authorities spent the better part of Tuesday and Wednesday searching an area of the Lamine River for... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 6:41:00 AM CST December 03, 2019 in News
(CNN) -- In September, India's historic attempt for a soft landing of their spacecraft and rover, the Chandrayaan-2 Vikram lander,... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 5:05:00 AM CST December 03, 2019 in News
NEW YORK (AP) — Democratic presidential candidate Bernie Sanders met Monday with baseball Commissioner Rob Manfred to discuss MLB’s proposal... More >>
2 days ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 4:42:15 AM CST December 03, 2019 in News
JEFFERSON CITY - December marks the beginning of the Christmas season and the Governor's Mansion in Jefferson City is already... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 11:33:00 PM CST December 02, 2019 in News
JEFFERSON CITY - School policies that have sparked heated opposition among Columbia parents of students with disabilities could be... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 11:05:00 PM CST December 02, 2019 in News
COLUMBIA - Missouri football is in need of a new head coach after MU Athletic Director Jim Sterk fired Barry... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 9:54:00 PM CST December 02, 2019 in Sports
AUDRAIN COUNTY - The Moreland family is celebrating after their device known as The Frog won an award in Paris... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 9:38:00 PM CST December 02, 2019 in News
COLUMBIA - The Missouri State Highway Patrol dealt with nine fatalities and three drownings over the Thanksgiving holiday. The... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 6:58:00 PM CST December 02, 2019 in News
OSAGE BEACH - The Missouri Department of Transportation said one lane of Eastbound State Highway 54 and Eastbound ramp to... More >>
2 days ago Monday, December 02 2019 Dec 2, 2019 Monday, December 02, 2019 6:11:00 PM CST December 02, 2019 in News
Columbia, MO
Broken Clouds 58°
2pm 57°
3pm 59°
4pm 56°
5pm 53°