As Missouri faces a fiscal cliff, Gov. Mike Kehoe says he’s looking for ways to shrink the state budget, including funding some programs in partnership with nonprofits and municipalities.
Increases in pandemic-related federal funding resulted in years of budget surpluses, but that money is quickly dwindling. A recent report from Auditor Scott Fitzpatrick says the state could run out of its surplus if no changes are made.
Kehoe and Fitzpatrick both blame the budget concerns on over-spending. Missouri lawmakers passed a $50.7 billion budget for next year, and the state is currently expected to spend $2 billion more than it will collect. The state budget has grown more than $20 billion since 2020.
Missouri eliminated its capital gains tax last year, and voters will decide in August whether to approve a plan pushed by Kehoe to eliminate the state income tax and replace that revenue with increased sales and use taxes.
Kehoe has until the end of June to veto items in next year’s budget. He says he’s looking to find other ways to fund some recently-launched programs.
“Are there partnerships out there from the nonprofit sector, from local municipalities, etc. that can maybe help keep some of those things available to citizens, but maybe fund them in a different manner?” Kehoe told KCUR’s Up To Date.
Kehoe also discussed regulation of data centers, upcoming votes on the income tax and whether to make it harder for citizens to amend the state constitution, and the World Cup in Kansas City.
- Missouri Gov. Mike Kehoe
