KC Reporter

Governor Mike Kehoe of Missouri has signed the Fiscal Year 2026 (FY26) state operating and capital improvement budget bills. The approved budget totals $50.8 billion and includes significant vetoes and expenditure restrictions aimed at controlling spending.

Governor Kehoe's office received a budget proposal that included an additional 450 items and nearly $775 million beyond his initial recommendations. In response, he exercised his veto power on 208 items, cutting nearly $300 million in general revenue, alongside imposing restrictions on 32 expenditures amounting to $211 million.

"We appreciate the work of the General Assembly in getting this budget to my desk," Governor Kehoe stated. He emphasized that while vetoes were necessary to curb unsustainable spending, the budget supports initiatives for a safer and more prosperous Missouri.

The FY26 budget prioritizes public safety with allocations such as $10 million for local community equipment and training needs through the Blue Shield Program, $7 million for fentanyl testing in schools' wastewater systems, and $2 million for the Missouri sheriff’s retirement system.

Economic development is another focus area with investments including $91 million for rural road improvements, $10 million for childcare grant funding opportunities, and $11 million to address needs in career-technical centers across Missouri.

In agriculture, Governor Kehoe's plan involves $55 million in bonding for State Fair facilities improvements, ongoing funding of $800,000 for Missouri FFA programs, and funds to enhance inspection capacities in meat and poultry industries.

Education also sees substantial investment with a total of $376.6 million earmarked for transportation costs reimbursement to school districts and additional funds allocated towards scholarships and teacher salaries.

Despite these allocations, Governor Kehoe has raised concerns about future financial challenges due to reduced federal pandemic aid combined with tax cuts that lower state revenues by approximately $400 million annually. These factors contribute to an anticipated shortfall of nearly $1 billion starting FY27 if corrective measures are not implemented.

"As Governor," said Kehoe, "I have a constitutional obligation to balance the budget." His administration plans continued fiscal oversight alongside the General Assembly to manage potential future restrictions or adjustments needed within state finances.

Governor Kehoe assures Missourians that these actions are not indicative of broader economic issues but rather necessary steps towards managing government spending responsibly while maintaining Missouri’s economic resilience.

For further details on specific allocations or restrictions within the FY26 state operating budget bills or complete lists regarding vetoed items or expenditure restrictions imposed by Governor Kehoe’s administration—interested parties can access these documents online.