Missouri FY27 Budget Includes Local Project Restrictions as Governor Signs $50.7 Billion Spending Plan

Jefferson City, Mo. (KFMO) - Governor Mike Kehoe has signed Missouri's Fiscal Year 2027 operating and capital improvement budget totaling $50.7 billion, while vetoing 65 spending items worth more than $52.7 million and placing restrictions on dozens of additional projects across the state, including several that would have directly benefited communities in the Parkland.

In announcing the budget, Governor Kehoe said controlling government spending is necessary to keep Missouri financially stable.

"State government doesn't have a revenue problem, we have a spending problem, and continuing to spend faster than we grow our economy is not a sustainable path forward," Kehoe said. "Our work doesn't end with balancing this year's budget. By maintaining fiscal discipline and continuing to grow Missouri's economy, we are building the foundation for an even stronger and more resilient Missouri."

State Senator Mike Henderson says lawmakers made efforts to reduce spending but warned Missouri is still expected to face a budget shortfall of more than $500 million in Fiscal Year 2028.

While the budget funds state government operations for the coming fiscal year, several projects affecting southeast Missouri were placed under spending restrictions.

Among those local projects are:

• $2 million for renovations at the Farmington Regional Airport.
• $454,000 for stormwater improvements in Desloge.
• $4 million for the St. Francois County Regional Industrial Park.

The restricted funding means those projects are not immediately moving forward, despite being included in the budget process. State officials say the restrictions are part of broader efforts to control spending as Missouri prepares for projected revenue challenges in future fiscal years.