Enacted Budget – Fiscal Year 2025
On June 28, Missouri Governor Michael Parson completed signing the 20 bills that comprise the state’s fiscal 2025 budget. The budget calls for $51.17 billion in total spending after recommended vetoes, a 3.3 percent decrease from fiscal 2024. Fiscal 2025 general revenue spending is estimated at $15.08 billion (a 3.8 percent decrease), federal funds $24.20 billion (a 1.6 percent decrease), and other funds $11.89 billion (a 6.1 percent decrease). When signing the appropriation bills, the governor issued 173 line-item vetoes, totaling $1 billion. As of July 1, 2024, Missouri is expected to have a nearly $6 billion fund balance; however, more than 66 percent of Missouri’s fund balance has already been obligated for fiscal 2025. Net general fund revenue collections are projected at $13.16 billion, a 0.2 percent increase over the revised forecast for fiscal 2024.
The enacted budget is focused on lifting up Missourians through workforce development and infrastructure. Increased investments in workforce development and education include $367.7 million for higher education capital improvement projects; $361.4 million to fully fund school transportation needs; $121 million to fully fund the K-12 Foundation Formula; $69.3 million for the Career Ladder program; $54.4 million for employer-driving workforce training investments; $33.4 million for the Teacher Baseline Salary Grant Program; and a $32.5 million core funding increase for state higher education institutions. Regarding early childhood programs, the enacted budget includes $56 million to provide pre-kindergarten programs to all students qualifying for free and reduced lunch; $54.8 million to increase rates for childcare providers; and $26 million for private childcare providers. Concerning infrastructure, the budget includes $1.5 billion for broadband investments; $577.5 million for the I-44 expansion from St. Louis to Joplin; $290 million to boost road and bridge projects; $27 million to upgrade Missouri’s airports; $100 million for low-volume roads; $11.6 million for improvements at river ports; $5 million for Missouri River Flood Resiliency efforts; and $3.5 million for the Agriculture Resiliency Fund. Finally, the budget includes investments in the state workforce and state services including $134 million to maintain, repair, and renovate state facilities; $111 million to provide a 3.2 percent salary increase for all state team members; $19.4 million for statewide technology upgrades; $8 million for addressing behavioral healthcare and other healthcare staffing shortages; and $7.2 million for Maternal Mortality Prevention.