Cole County Commission approves budget with weak revenue projected

JEFFERSON CITY, Mo. (KMIZ)

Cole County commissioners approved a 2026 budget burdened by lower-than-expected tax revenue on Thursday.

The county ended 2025 with $56.4 million in reserves and is expected to bring in $64.4 million in 2026. However, commissioners anticipate spending $92.9 million throughout the year, which includes $32.8 million in capital projects.

Cole County Auditor Jay Moore said the county needs to watch its spending this year, now that federal stimulus funds from the COVID-19 pandemic are running dry.

"Governments have a tendency, when they receive big funds of money, to maybe overspend," Moore said. "Well, those days have come to an end. So, we're having to cut back on our spending, watch everything we do."

Capital improvement sales tax ended the year with only a 0.6% increase in revenue, when it was projected to grow by 2%. Moore said sales tax is one of the main streams of revenue for the county, and the new budget doesn't project an increase -- it stays flat.

"Sales tax is lagging, not growing like it could or should," Commissioner Harry Otto said. "That may be due to too many of us buying on Amazon rather than going down to the mortar and brick store."

There is one way the sales tax could grow, but it depends on Governor Mike Kehoe's tax plan, which he plans to announce Tuesday at the State of the State Adress.

Kehoe has been open about his intent to eliminate income tax, and there are two ways to make that happen. The governor can either expand what is taxable to include services or increase the sales tax rate.

Otto said an expansion of the sales tax base would benefit the county because that would increase the amount of tax-eligible products and services.

The county also has a use tax for online purchases, which Moore said is bringing in more money.

The commissioners also approved a resolution to renew the capital improvement sales tax for 2027, which will need voter approval in April. If approved by voters, the sales tax will be in effect for 10 years and start in January 2027.

Cole County has a self-insurance plan and stop-gap policy, so when any county employee files a claim with their insurance that is more than $80,000, the county pays that claim and is reimbursed from the insurance, Moore said.

The county saw more people filing claims about the $80,000 line in 2025, and also saw a 20% increase in health insurance premiums for 2026, Moore said. The rising cost of claims and frequency at which people are filing them could cause the county to look at alternative insurance options.

"This will be a fund that I will continue to monitor into 2026 to see if we can continue to be self-insured going forward," Moore said.