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Kehoe gives State of the State

Yesterday, Governor Kehoe gave his first State of the State address. The speech focused on his budget proposals to the state legislature and highlighted his main priorities for the 2025 session. His priorities included public safety, economic development, education improvement, expanding childcare access, and much more.

Kehoe Targets Foundation Formula
The surprise proposal however dealt with the issue of the state’s Foundation Formula.

Missouri’s foundation formula is a calculation that determines how much money the state allocates to each school district for K-12 education. The formula is based on several factors, including the number of students, the cost of living, and the amount of local revenue.

Governor Kehoe stated in his speech “The Foundation Formula in its current form has gotten out of control,” later adding “we no longer feel the formula, as currently written, appropriately allocates funding for public education.”

To deal with the formula, Governor Kehoe announced “…we have issued an additional executive order establishing the School Funding Modernization Task Force to recommend changes to better serve students and families,” later stating that the state must modernize the way we fund education.

Governor Kehoe’s budget also includes $50 million in general revenue funding to bolster the ESA program.

Securing Missourians Future with Public Safety
Kehoe stated “Any efforts we make to improve the lives of Missourians—whether it’s expanding education opportunities, cutting taxes, or expanding childcare—none of it matters if Missourians aren’t safe. Securing Missouri’s future begins with public safety.”

The Governor urged the legislature to back bills in both the House and Senate which would shift control over St. Louis’s police department back over to that hands.

“The current status quo in St. Louis is unacceptable. As the economic powerhouse of our state, we cannot continue to let crime kill growth in the region and drive businesses and families to move outside of our state’s borders.” said Kehoe

He also asked that the legislature bolster the state’s Blue Scholarship program to help with recruitment and retention rates for police. He also recommended adding an additional $10 million in funding for the Blue Shield Program, which would help local communities with training and the purchasing of new equipment for law enforcement.

The recommended budget would also see an additional $2.5 million added to support the Sherifs retirement system and a new crime lab to be built in Cape Girardeau for the State Highway Patrol Troop E. He also recommended higher penalties for crimes such as violent rioting, stunt driving, and street racing.

The issue of fentanyl related deaths and crime was brought up by the Governor, urging that any drug deal found dealing fentanyl that kills any Missourian should be charged with first degree murder. He added that he would like to see an additional $2 million be allocated to fentanyl testing in wastewater systems.

Economic Development: Tax Cuts, Infrastructure, Tort Reform, and Childcare
Turning to economic issues, Kehoe focused on cutting taxes, reducing regulations, expanding childcare, money for rural roads, and increasing opportunities in technical education.

Kehoe announced that he has instructed the Department of Revenue to create a comprehensive plan to eliminate the individual income tax in the state of Missouri. He also urged members to support income tax cut triggers such as the one found in Senate Bill 509.

“Missourians can spend their money a whole lot better than government, and I hope you will work with me to help Missouri families secure a better future for themselves…a future with no income taxes.” he stated.

Governor Kehoe also urged that the legislature send “substantial” tort reform bills to him for signing.

To tackle the issue of childcare, Kehoe announced his Executive Order 25-15, charging the Department of Elementary and Secondary Education-Office of Childhood with a complete re-write of the child care regulations. His budget would also include $10 million in grant funding to help increase the number of childcare openings to Missouri families.

To invest in our infrastructure, Kehoe announced that his budget would include a reappropriation of last year’s 100 million dollars for rural road improvements.

Government Efficiency
Last week, governor Kehoe announced three executive orders to tackle the issues of government efficiency and accountability. In his state of the state, he also announced his intentions to see a Missouri Department of Government Efficiency.

“A Show Me DOGE.” he quipped.

Agriculture
With agriculture being a major player in Missouri’s economy, it of course was mentioned in the address. Kehoe announced that he would like to see $800,000 in permanent funding for Missouri FFA. As well as $55 million to support the construction of a new multi-use livestock barn in Sedalia for the State Fair Grounds.

“As a businessman, I believe a return on investment is critical to any deal and thanks to the cooperation of the Missouri State Fair Commission, we expect their help to retire the bonds for this project with the revenues from this facility,” he said “Once fully operational, we expect these investments to pay for themselves by attracting more national and regional events and shows, bringing increased economic activity to Sedalia.”

Additional Resources for Women and Veterans
Kehoe also brought attention to the issue of Amendment Three, which overrides the state’s abortion laws and allowed for abortions to be performed again in the state of Missouri. He urged the assembly to provide additional resources for Pregnancy Resource Centers in the state so that abortion was not always seen as the only option.

On the issue of veterans, Governor Kehoe proposed an additional $10 million in funding for Veteran Homes.

“Under the Kehoe Administration, no veterans home will close due to a lack of state funding.” he stated.

Kehoe has offered the legislation bold proposals. Whether it deals with St. Louis crime, education funding, or additional resources for pregnancy centers, this session is sure to see budget changes which will affect the trajectory of the state’s future.