Governor Parson Makes Cuts to FY2021 Budget

With no federal aid in sight, Governor Mike Parson cut $459 million in state FY 2021 spending before signing the FY 2021 budget. Citing the fiscal nightmare brought on by the coronavirus pandemic, the governor said the cuts were necessary. The restrictions in the FY 2021 budget come on top of $430 million in withholds from last year's budget.

Governor Parson's latest budget cuts again focused on public schools, colleges and universities. He restricted $123.3 million in benchmark aid for K-12 schools, a 3.5 percent cut. Community colleges and universities are looking at 12 percent cuts compared to last year's original appropriations. Proposed raises for state workers are also gone, and 300 state jobs, mostly in the Department of Social Services, will be eliminated. Parson also eliminated new spending as much as possible. To see the complete list of restrictions, click here.

Governor Parson and his budget director, Dan Haug, said some of the new restrictions could potentially be temporary if state revenues exceed expectations.

July 7, 2020 - 6:16am
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