Kehoe budget prioritizes public safety, economic development, increases education funding
JEFFERSON CITY, Mo. (KMIZ)
Gov. Mike Kehoe unveiled his budget priorities for the upcoming year during his first State of the State address Tuesday, including a heavy emphasis on public safety, early childcare programs and healthcare access.
During his inauguration, Kehoe indicated that he wanted to tighten up the state budget. His goals included exempting capital gains from taxes, eliminating state income tax and making the state safer. Eliminating state income tax will be a long-term project. Kehoe said the state government “can’t just flip a switch” because he wants a plan that is responsible.
Kehoe's budget includes spending $2.4 billion above projected revenue. Cabinet members said the governor wants to spend the state's balance down and that he will work to find cuts and as time goes along. Much of that balance comes from federal pandemic aid that has a spending deadline.
On Tuesday, President Donald Trump paused federal programs and grants, many of which Missouri relies on. Members of Kehoe’s cabinet told reporters during a briefing on the budget that they have been communicating with departments across the state to help better understand the impacts of this pause, but say at this point it’s “too early to tell.”
A judge later put part of the Trump plan on hold.
Public safety
Public safety is a top priority for the Kehoe administration. The state would like to spend $12.2 million on a new crime lab in Highway Patrol E. The 20,000-square-foot lab will be located in Cape Girardeau.
Grant money will be available to support training and equipment needs for police departments across the state and will also be created for the newly established Blue Shield program. The state will give $10 million in grants that Blue Shield departments can apply for to help improve public safety on the local level, according to the Kehoe budget.
Another $4 million in funding will be allocated for testing school wastewater for fentanyl. The money will also be used for counseling and support programs in areas that have a high fentanyl overdose rates.
The budget also helps address some staffing shortages for police departments across the state by creating a $1 million scholarship program for the law enforcement training academy. The $1 million will be enough to deploy 200 more trained law enforcement officers. It also represents a 50% increase in funding.
One of the largest areas of funding in the Kehoe's public safety plan includes $25 million to support victims of crime. The money is being requested in response to a loss in federal funding for community-based victim assistance plans and services.
Economic development
Child care was included in the economic development portion of the Kehoe budget.
The Kehoe administration says that child care for low-income families was one of its top priorities since a lack of quality care prevents some workers from joining the workforce.
Kehoe wants to commit $161.5 million in funding for the childcare subsidy program. The program will continue current eligibility levels for families and ensure timely payments, according to the Kehoe administration. Delayed payments crippled childcare services across the state last year.
The budget includes $10 million in childcare innovation grants. Employers can apply for the grant if they would like to set up daycare services for their employees or expand access to childcare.
The budget also commits $60 million to improve rural roads.
The largest investment in economic development would be the $40.5 million for the 2026 FIFA World Cup in Kansas City. The money will be spent on security, transportation, and promoting tourism in the state. As one cabinet member put it, “The eyes of the world will be upon us and we want to put our best foot forward.”
Another $20 million is included for career centers across the state. The money would be used for general partnerships with schools K-12 across the state that teach trades. Some of the funds would also go to updating the equipment in trade schools to ensure students are learning with the most up-to-date equipment.
Agriculture
Missouri hopes its plan for a new arena at the State Fair will attract big events from across the country. However, the new facility will need auxiliary buildings around the area for livestock. Because of this, $55 million in bonding would be allocated for these new livestock facilities in the Kehoe budget. The state would then partner with the State Fair to help pay off those bonds once they begin generating revenue from the new arena.
Kehoe is also planning on expanding Missouri's meat and poultry inspection program with $330,871. The expansion is designed to minimize inspection delays.
Education
Just over $4 billion would be used to support K-12 public school districts. This includes $200 million in new funding for the foundation formula, which represents the largest increase in the formula’s 20-year history. However, Kehoe stated he would be working to develop a new funding formula that better fits the state's current needs.
Another $50 million would go into the Empowerment Scholarship Account Program, which was previously only funded through tax credits. The Kehoe administration hopes the investment will provide more education options to families that meet the needs of their children.
The budget includes $33 million for teacher baseline salaries and an additional $30 million for small school grants.
Charter schools would receive $7 million for capital improvements.
Health care and mental health
The budget would provide MO HealthNet -- the state's Medicaid program -- with $149 million for waiver services for 3,700 individuals with developmental disabilities in need of residential services and in-home support. An additional $71.6 million would go toward behavioral health services for 2,102 adults and 6,734 children in need of residential services.
The First Steps program would receive $17.9 million to support children born with disabilities and delays after seeing an increased demand for the services.
Meanwhile, $4 million would be spent on alternative programs for abortion, $3.9 million on the 988 suicide crisis lines, and $2 million on five new behavioral health crisis centers.
Veterans
Kehoe would like to place a greater emphasis on supporting veterans. To align with this goal the proposed budget includes $10 million in support for veterans homes, $7.3 million to improve call systems in state veterans homes, and $1.43 million to invest in cloud-based electronic health record systems.