Governor Announces Budget Cuts as MO Legislature Prepares to Return

This week, Governor Parson announced $47 million in budget cuts (withholds) for FY 2020, adding to the $170 million he already cut several weeks ago. The governor has authority to spend the money appropriated by the legislature, but on occasion will "withhold" funding for various programs when revenues fall, in order to maintain a balanced budget and avoid deficit spending. Missouri has operated in this fashion for years and as a result has a AAA credit rating. The largest programs to see cuts this time were K-12 education, school transportation, broadband grants, electronic monitoring for prisoners, and Medicaid. To see a complete list of cuts, click here.

Next week, the Missouri General Assembly will return to address the FY 2021 budget. The House budget committee finished preparing the budget in mid-March, and the House was scheduled to take up the budget on the floor when revenue projections dropped due to the COVID-19 outbreak. The budget process will start on the House floor and we expect amendments to be offered to the budget bills passed out of committee, reducing funding for various programs. Which programs will see cuts is not yet known, nor is it clear if any other legislative business will be taken up before the end of the legislative session on May 15th.