Missouri governor signs off on $35.6 billion budget, vetoing $115 million
Galen Bacharier
JEFFERSON CITY — Gov. Mike Parson signed off on the state's $35.6 billion annual budget this week, approving increased funds for education, health care and other programs after a year of financial uncertainty amid the pandemic.
Parson also vetoed a number of programs and services, cutting $115 million total from the budget approved by the state legislature and sent to his desk in May. Lawmakers in the House and Senate will be able to challenge Parson's vetoes in September.
The fiscal year 2022 budget will not, however, include budget restrictions, which were in play until less than 24 hours before the July 1 fiscal year start date. Lawmakers passed a renewal of a tax to fund the state's Medicaid program Wednesday, narrowly dodging what Parson had said would have been around $722 million in cuts to fill the tax's gap.
More:Missouri House passes critical Medicaid tax, avoiding governor's deadline and budget cuts
That lack of cuts and significant federal stimulus money paint an encouraging picture for the budget's health following a year defined by COVID-19.
"Missouri's financial situation is vastly different from what we faced in 2020, and we applaud the General Assembly for recognizing this historic opportunity to make critical investments in the future of our state," Parson said in a Wednesday news release.
Parson's budget does not include money for expanding the state's Medicaid program under a voter-approved 2020 amendment. The issue is awaiting a Missouri Supreme Court decision on July 13 after a circuit judge ruled the amendment unconstitutional due to its lack of assigned funding.
More:Medicaid expansion legal battle heads to Missouri Supreme Court
Among the governor's vetoes are $24 million for wage hikes in the Department of Mental Health, $5 million for charter school repairs and $2 million for the Department of Social Services' Children's Division, which handles foster care and child abuse cases. A proposed raise for the director of the department was cut by Parson, as well as $300,000 to hire additional security at the Capitol in Jefferson City.
Some of the most notable increases in the budget are for K-12 and higher education, exceeding pre-pandemic spending levels.
Missouri's foundation formula — the state's method of funding schools that primarily pays teacher salaries — receives $8.5 million more, and is now fully funded. The new Office of Childhood, housed within the education department, will receive $252.7 million and 121 staff from various state agencies. School transportation funds will be bolstered by $20 million.
Other K-12 investments include $13.2 million for the A+ Schools Scholarship Program and $8.4 million for early childhood special education programs. Four-year colleges and universities will receive $20.2 million more and community colleges will receive $10 million more.
The budget also includes significant funding for health and safety projects, many of them focused on crisis relief and mental health. $15 million will go toward establishing six new crisis stabilization centers and support already established ones. Missouri's Public Defender system will receive much-needed relief in the form of $3.6 million and 53 staffers, seeking to cut down significant waitlists.
Over $450 million in federal stimulus funds will go toward a mortgage assistance program and aid for renters who lost their jobs or income during the pandemic. $48 million is dedicated to make up for the state's overpayments to people applying for unemployment benefits in the early days of the pandemic.
State workers will also receive a 2 percent raise under the new budget.
Galen Bacharier covers Missouri politics & government for the News-Leader. Contact him at gbacharier@gannett.com, (573) 219-7440 or on Twitter @galenbacharier.