Auditor Fitzpatrick finds state revenues in compliance with Hancock Amendment

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 2024 fiscal year, total state revenue amounted to approximately $15.5 billion and Missouri personal income totaled more than $357 billion. The 1981 base year ratio of personal income to total state revenue is 5.6% which produces a refund threshold for 2024 of slightly more than $20.4 billion. As a result, the state was in compliance with the Hancock Amendment as total state revenue was approximately $4.9 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 2024 the state had a taxes and fees increase limit of $144.4 million. Based on estimates from the Office of Administration, the state was actually projected to see taxes and fees decrease by $199.5 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.