Page 8 State Auditor Claims Withholding Changes Made Unlawfully Missouri State Auditor Nicole Galloway released an audit on April 2nd detailing uncertainty and confusion related to the state's individual income tax withholding tables. The report found that changes made to withholdings in January 2019 were done unlawfully and will result in overwithholding for the majority of individual Missouri taxpayers. "For more than six months, this administration failed to communicate with Missourians on how changes to withholdings would affect their bank account. Then, despite bipartisan calls for answers, they attempted to downplay the issues," Auditor Galloway said. "Taxpayers deserve honesty from the administration. Instead, the Department of Revenue continues to operate in secrecy." In December, as a part of the audit of the timeliness of tax refunds, Auditor Galloway directed her team to begin asking questions about the withholding tables. The report outlines multiple changes made to the
withholding tables and the administration's failure to effectively communicate with the public about those changes. New tables were released in March 2018 and October 2018. As a result of these changes, taxpayers are expected to pay an additional $134 million when they file their returns, and there will be $232 million less in tax refunds issued. Changes were made without explanation and resulted in confusion for individual taxpayers. While department officials contacted employers and payroll agencies directly about the changes, they failed to adequately notify all taxpayers. As a result, many taxpayers were unaware of the changes, unclear on what adjustments to make to their withholdings, and have encountered an unwelcome surprise in the form of unexpected tax payments. In January 2019, the withholding table calculation was changed to over withhold. This change is expected to result in an additional $62.9 million
coming from Missourians with adjusted gross incomes under $125,000 annually, 53 percent of Missouri taxpayers. The audit states the administration failed to follow the appropriate legal process for the changes despite state law requiring legislative and public review. On March 8, the Department of Revenue received the Auditor's draft report. Less than a week later, the Governor announced the department director's resignation. "Over and over, this executive agency makes decisions that directly impact the daily lives of Missourians without clearly communicating with the citizens who are affected. The decision to take more money out of paychecks without going through the legally required process shows a clear pattern of mismanagement," Galloway said. "It should be simple: follow the law, get it right, and stop misleading taxpayers." The report also found that the timeliness of refunds in fiscal year 2018 improved after an audit last year
brought to light increasing delays in issuing refunds. Eighty percent of total refunds were paid by May 9, 2018; in fiscal years 2016 and 2017 the state did not reach that payout level until late June. The audit also found 3 percent of total refunds were paid with interest in 2018, as opposed to 24 percent in 2017. Concerns remain, however, as the state continues to rely on borrowing to supplement cash flow and pay operating obligations. Cash reserves have not recovered since the recession in 2008, even as the economy has improved. In past years, the state's decreasing cash balance resulted in less money to pay Missourians' tax refunds. In fiscal year 2019, the state's general revenue fund has not had sufficient cash to cover expenditures, resulting in high levels of borrowing to make ends meet. The state has borrowed $500 million from the budget reserve fund, the maximum level of borrowing for the year. By law, that money must be repaid before May 16.
April Marks Autism Awareness Month April marks National Autism Awareness Month, and Governor Parson and First Lady Teresa Parson are joining with citizens across the state to increase the awareness, understanding, and acceptance of Autism Spectrum Disorder (ASD), also known as Autism. Autism is a developmental disability that can cause significant social, communication, and behavioral challenges. The learning, communication, and problem-solving abilities of people with autism can range from gifted to severely challenged. Those living with autism and their families face a number of challenges, often needing supports and accommodations in their daily lives. “Autism is one of the fastest growing developmental disorders in the United States,” Governor Parson said. “There are no cures today, but early diagnosis and intervention are a child’s best hope for reaching his or her full potential.” In the State of the State, Governor Parson advocated for $1 million increase to ensure families and parents have access to the right resources and are equipped to deal with the challenges that come with caring for loved ones with Autism. Signs of autism begin during early childhood and usually last throughout adulthood. The Center for Disease Control’s (CDC) most recent data indicates autism impacts 1 in 58 children, which is a 30 percent increase from the previous estimate in 2012. Throughout April, there are a number of ways we can work together to increase awareness and acceptance
of people with autism and their families including participating in Autism Speaks Wear Blue, Share Blue, and Light It Up Blue campaigns. Everyone is encouraged to wear blue during the month of April, especially on April 2. “For all of the children and their families who deal with autism on a day -to-day basis, there is no doubt that attention needs to be given to the hurdles they face,” First Lady Teresa Parson said.. “As an advocate for special needs children, I am honored to support autism awareness and pray that the understanding and acceptance of this condition will increase as a result.” “Autism Spectrum Disorder affects more than 70 million people globally—
and this number likely includes someone you know,” Treasurer Scott Fitzpatrick said. “April may be Autism Awareness Month, but working to increase understanding of those living with autism should be something we all do year round.” “My son Stephen was diagnosed with autism spectrum disorder, and while it’s been challenging at times, he has been an incredible blessing to our family. Stephen has taught me a deeper sense of compassion and instilled in me the importance of defending and protecting the most vulnerable members of society, something that I’m able to do every single day as Attorney General,” Attorney General Eric Schmitt said. “I’m grateful that Governor Parson
and people across the state are recognizing and celebrating the sacrifice and dedication of Missouri families who care for children on the autism spectrum. It’s my hope that Autism Awareness Month will spark renewed faith among Missourians who care or advocate for children on the autism spectrum, lead to more innovative and unique treatments, and remind families that they aren’t alone in this journey.” Autism Awareness Month is a great time to raise awareness of the disorder, but individuals and families need support and acceptance all year. For more information on autism, visit the Department of Mental Health, Office of Autism Services website at https://dmh.mo.gov/dd/autism/.
