The $152 billion federal economic stimulus package might give the economy a much needed infusion of cash, but it could tighten the state budget.
The Center on Budget and Policy Priorities, a think tank in Washington, says a couple of business tax cuts included in the package will cut state income in Missouri by $100 million. House Budget Committee Chairman Allen Icet (R-Wildwood) tells the Kansas City Star that will wipe out about one-third of the money lawmakers were counting on to finance increased services for such things as Medicaid and education.
Tow business tax cuts included in the package approved by Congress will cost 36 states a total of $2.9 billion in lost income. Concern over the economy led Democrats and Republicans to cooperate and put together the stimulus package. President Bush is expected to sign the legislation tomorrow. Checks totaling $600 per individual and $300 per child could be mailed as soon as May.