The downward trajectory of the state’s revenue figures could have a substantial impact on many facets of Columbia’s economy.

State revenue collections are down about 10 percent compared to fiscal year 2009. Individual income tax, corporate and franchise tax and sales and use tax all declined significantly.

The reports from Linda Luebbering, the state budget director, are sparking concern among state policymakers, including state Rep. Chris Kelly. Kelly, a Democrat from Columbia who serves on the House Budget Committee, said the state’s revenue downturn would have an effect on Columbia’s major employers.

“The big consumers of general revenue are elementary and secondary education, higher education and mental health,” Kelly said. “I don’t know how we sustain a half a billion dollar decrease in general revenue receipts without having a significant impact on all three areas.”

Gov. Jay Nixon on Wednesday cut an additional $204 million from the state budget and eliminated about 200 full-time jobs and 500 part-time jobs to help offset the decline in tax revenues. About 2,300 full- and part-time state employee positions now have been eliminated, either by Nixon or legislators, according to an Associated Press report.

The University of Missouri system, along with other higher education institutions in the state, entered into a deal in which funding would remain static in exchange for increasing tuition only as high as increases in the Consumer Price Index, which MU estimates will be 3 percent in the current fiscal year. Nikki Krawitz, who serves as vice president of finance and administration for the UM system, said she expects Nixon to honor that agreement for the 2010 fiscal year that began July 1.

“While it will be difficult for the state this year, I certainly think that they will protect higher education because of our agreement,” Krawitz said. “I think next year and year after will be a bigger challenge.”

There is $21 million in “budget stabilization” money that could be used to assist higher education in fiscal year 2011 in addition to the state funding, currently at $189 million. That pot of funds stems from the federal stimulus package and was designed to ease shortfalls for state governments. But Krawitz said there are questions about whether that money will have to be used for the current fiscal year.

“If not, and it’s left for next year, it won’t completely replace what’s put in there for this year because there isn’t enough left,” Krawitz said. “And so it isn’t clear at this point where the additional revenues will come from.”

Don Laird, the president of the Columbia Chamber of Commerce, said MU could be hit by the state’s revenue reduction, which would have a reciprocal effect on the area’s economy.

According to data from the Web site of Regional Economic Development Inc., MU provides jobs for 8,491 people — the most in the Columbia area.

“There are a lot of people who work in [Jefferson City]; there are a lot of people who work for governmental agencies outside of the university in the community,” Laird said.

REDI data showed that 806 people in the area are employees with the State of Missouri.