Governor Kehoe Signs $50.7 Billion Missouri Budget for Fiscal Year 2027

Jefferson City, Mo. (KFMO) - Governor Mike Kehoe has signed Missouri's Fiscal Year 2027 operating and capital improvement budget totaling $50.7 billion, calling it a fiscally responsible spending plan that invests in the state's priorities while preparing for future financial challenges.

The FY27 operating budget totals approximately $49.8 billion after the governor's line-item vetoes and includes $15.7 billion in general revenue.

Kehoe thanked members of the General Assembly for working together to pass what he described as a balanced budget focused on responsible stewardship of taxpayer dollars.

The budget includes several major funding priorities across state government.

Public Safety

Approximately $2 billion is allocated to public safety initiatives, including funding for Missouri Blue Shield grants, Operation Relentless Pursuit, law enforcement academy scholarships, and other efforts aimed at supporting law enforcement agencies and improving community safety.

Education

Education receives $9.8 billion in funding, supporting Missouri's K-12 foundation formula, student transportation, the Empowerment Scholarship Account Program, career and technical education centers, and higher education institutions.

Healthcare

Healthcare accounts for the largest portion of the budget at $24.8 billion. Funding will support individuals with physical, developmental, and behavioral health needs while also providing resources for self-directed support services, outpatient competency restoration, and Medicaid reform initiatives.

Economic Development

The budget dedicates $338 million toward economic development, including investments in the Missouri Technology Corporation, Missouri One Start workforce training, statewide apprenticeship programs, and childcare initiatives designed to strengthen Missouri's workforce.

Agriculture

Missouri agriculture will receive $59.4 million to support farmers, producers, and rural communities through infrastructure improvements, low-volume road projects, Missouri FFA programs, and other agricultural initiatives.

Governor Kehoe noted that while lawmakers largely stayed within his recommended budget framework, the spending plan relies on $179.1 million in one-time cash to fund ongoing expenses.

He also warned that Missouri is projected to face a budget shortfall exceeding $500 million in Fiscal Year 2028 if government spending continues to outpace economic growth.

To fulfill the constitutional requirement of approving a balanced budget, Kehoe issued 65 line-item vetoes totaling more than $30 million in general revenue.

He also implemented 78 expenditure restrictions totaling $441.3 million, including $337.2 million in general revenue.

According to the governor's office, the vetoes and spending restrictions primarily targeted new projects, appropriations using improper funding sources, or instances where agencies received more funding than necessary.