Missouri

Missouri

Budget Links 

FY2027 (enacted)
FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Enacted Budget – Fiscal Year 2027

On June 30, Missouri Governor Mike Kehoe completed signing the 20 bills that comprise the state’s fiscal 2027 budget. The budget calls for $49.84 billion in total spending after recommended vetoes, a 2.0 percent decrease from fiscal 2026. Fiscal 2027 general revenue spending is estimated at $15.67 billion (a 1.6 percent increase), federal funds $22.07 billion (a 9.3 percent decrease), and other funds $12.10 billion (a 9.4 percent increase). When signing the appropriations bills, the governor issued 65 vetoes totaling over $30 million in general revenue, and 78 expenditure restrictions, totaling $441.3 million ($337.2 million in general revenue). Net general fund revenue collections are projected at $13.65 billion, a 3.8 percent increase over the revised forecast for fiscal 2026.

In signing the budget, the governor thanked the legislature for their partnership in passing a budget that reflects the state’s shared commitment to fiscal discipline and responsible stewardship of taxpayer dollars. Additionally, the governor noted the budget funds smart and necessary investments while also taking a step to right-size the government. In the area of public safety, the budget includes funding for items such as Missouri Blue Shield grants, Operation Relentless Pursuit, and law enforcement academy scholarships. Concerning economic development, the budget invests in the Missouri Technology Corporation, a statewide apprenticeship program, Missouri One Start, and a public-private-employee shared funding childcare model. Regarding agriculture, the budget supports Missouri farmers, producers, and rural communities through investments in infrastructure and programs, including low-volume roads, and the Missouri Future Farmers of America (FFA). The budget also strengthens the state’s education system by providing support for the K-12 education foundation formula and transportation, Empowerment Scholarship Account Program, career and technical centers, and higher education. Finally, in healthcare the budget includes funding for self-directed supports, outpatient competency restoration, and Medicaid reform. While supporting the overall budget, the governor raised concerns that the budget uses some one-time cash to pay for ongoing costs.

Enacted Budget Information
Fiscal Year 2027 Enacted Budget 

Fiscal Year 2027 Totals by Department 

Veto List

Expenditure Restrictions 

Governor's Press Release

Revenue Forecast – December 2025

Proposed Budget - Fiscal Year 2027

On January 13, Missouri Governor Mike Kehoe released his fiscal 2027 budget proposal calling for $54.50 billion in total spending, a 1.1 percent decrease from fiscal 2026. The budget recommends $16.31 billion in spending from general revenues, a .01 percent increase from fiscal 2026, while federal funds are projected at $24.77 billion, a 6.9 percent decrease. Net general revenue collections are forecasted to be $13.65 billion, 3.8 percent higher than fiscal 2026’s estimated level. The ending balance for fiscal 2027 is projected at $4.7 million. 

Proposed Budget Highlights 

The governor’s “A Foundation for Growth” budget is focused on ensuring the next generation inherits a Missouri that is safer, stronger, and full of opportunity. The budget proposal is aimed at strengthening public safety, growing the economy, supporting agriculture, improving education, limiting the size of government, and laying the foundation to eliminate the state individual income tax. 

Additionally, the budget recommendation reflects the state’s constitutional obligation to balance the budget and commit to responsible stewardship of taxpayer dollars while addressing imbalances created by years of elevated spending. As state finances normalize following the influx of unprecedented federal funds, the administration is working to align ongoing spending with ongoing revenues in an effort to return state finances to a sustainable, pre-pandemic framework. The recommendation reduces more than $600 million from the core operating budget, beginning to address a projected future imbalance exceeding $2 billion. The recommendations prioritize fiscal discipline while continuing to meet mandatory and high-priority obligations, including Medicaid matching requirements, childcare subsidies, and disaster relief, without cutting core funding for higher education or the K-12 foundation formula.

The administration’s priorities include:

Public Safety

• Unmanned Aircraft Systems – allowing law enforcement the authority to intercept and respond to unmanned aircraft systems.
• Sentencing Reform – providing greater transparency to the sentencing process.
• Violent Juvenile Crime Reduction Strategy – expands the ability to a prosecuting attorney to seek adult certification for violent juvenile offenders.

Economic Development

• Eliminating Individual Income Tax – recommends a constitutional amendment that would give the Missouri General
• Assembly the ability to carry forward the administration’s plan to eliminate the state income tax.
• Energy – proposes lowering the renewable energy standard from 15 percent to 7.5 percent and includes nuclear power as a generation source.
• Missouri Work Enhancements – creates a new tool within Missouri Works to attract projects with capital investments.

Agriculture

• Missouri Future Farmers of America - Funding for statewide and community level agricultural education programs.
• Missouri Rice Acquisition - Addresses food security needs through the purchase of Missouri grown rice.
• Resilient Food System Infrastructure - Funds a cooperative agreement with USDA for equipment and infrastructure investments to food producers and processers.
• Low Volume Roads - Improves low-volume routes across the state.

Education

• Missouri State High School Activities Association (MSHSAA) – Establishes a five-member governing board for MSHSAA.
• Open Enrollment – Allow students to attend a public school district in which they do not reside, if the receiving district volunteers to accept students from outside the district.
• School Accountability Grade Card – requires each school district to receive a grade between A-F based on student performance.

Healthcare

• Outpatient Competency Restoration – increases funding for outpatient competency restoration services.
• Substance Use Disorder Treatment and Support – additional funding for treatment of substance use disorders.
• Medicaid reform – staffing and program integrity improvements to ensure accurate distribution of Medicaid and related benefits.
• Rural Health Transformation – supports provider participation, delivery system improvements, and care coordination activities.

Government Efficiency

• Missouri GREAT – an executive order that reinforces the administration’s commitment to government efficiency, creating the Missouri Government Responsibility, Efficiency, Accountability, and Transformation Initiative.
• Artificial Intelligence – reinforces Missouri’s commitment to safely and effectively integrate AI into state government operations. 

Proposed Budget Information
Fiscal Year 2027 Budget Proposal 

Budget Summary 

Budget and Legislative Priorities 

Budget Transmittal Letter

Revenue Forecast – December 2025