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Parson signs Missouri’s $30 billion budget for FY 2020


JEFFERSON CITY, Mo. — In a rare move, Gov. Mike Parson has added his signature to Missouri’s roughly $30 billion budget for the upcoming fiscal year without vetoing a single line-item.

On Monday, Missouri’s chief executive gave final approval to the 13 bills that make up the state’s operating budget for the year beginning July 1, 2019, at the Jefferson City Correctional Center. Parson declined to reject any of the appropriations laid out by state lawmakers, a move sparsely seen. Last year, Parson vetoed five line-items totaling less than $1 million.

“Every year, the legislatures are committed to protecting taxpayers’ hard-earned money,” Parson said in a statement. “We are proud of the General Assembly and their efforts with the fiscal year 2020 budget. They have created a fiscally-responsible, balanced budget that will move Missouri forward.”

When the governor’s recommendation for FY 2020 was rolled out in January, money was left on the table and funding priorities included workforce development, infrastructure, and employee raises. The version signed by the governor includes all of those components — in some form to varying degrees.

The final version includes a 3 percent pay raise for all state employees and an additional $8 million retention plan for a pay increase for Department of Corrections staff — the same as recommended by Parson.

“I could not be more excited about this plan or more grateful for the support of House and Senate leadership, the governor and the governor’s staff,” said Missouri Department of Corrections Director Anne Precythe. “Gov. Parson has demonstrated that he is committed to building the state’s workforce and that he values corrections staff, who are some of the hardest-working and most dedicated people in state government. Every day they put their own safety on the line to protect our communities.”

The General Assembly allocated $50 million in general revenue for an initial payment on a $301 bond for bridge repairs and another $50 million for a cost-share program with local municipalities to fund road repairs. The original recommendation was a $351 million bond package that the state would pay off over 15 years and $50 million to be allocated for a transportation cost-share program with local communities.

Additionally, $10 million in lottery funds was allocated to the Fast Track grant program, roughly half of the initial $22 million asked for.

Next year will see an increase in core funding for all public universities by $1 million with some, such as Missouri State University, receiving as much as a $10 million increase. State Technical College received a $500,000 core increase and $500,000 for deferred maintenance.  

The K-12 foundation formula for public schools was fully funded for the third year in a row. Public schools’ core funding increased by roughly $60 million — up from $3.49 billion in FY 2019 to $3.55 billion in FY 2020. Public school transportation saw a $5 million funding increase, for a total of $108 million in appropriations.

The Consensus Revenue Estimate is projecting the general revenue collection for Fiscal Year 2020 will go up compared to the current year. Net general revenue collections in FY2020 are estimated to be $9.822 billion. This represents a growth of $193 million over the estimated revenue for FY 2019. The estimate for FY 2020 assumes growth of 2 percent. The revised estimate for the current fiscal year is $9.629 billion.

Between general revenue collections, federal funds, and other sources of revenue the total budget for FY 2020 — which starts July 1, 2019 — is $30,090,180,470. That figure includes a one-time expense for Capitol improvements.

The operating budget for FY 2020 is $29.7 billion. The approved operating budget for FY 2019 is $28.8 billion. Operating expenditures in FY 2018 totaled $25.7 billion.

Other highlights of the FY 2020 budget:

  • $5 million for rural broadband grants
  • $18.9 million for the MO Excels Workforce Initiative
  • $10.4 million for the Missouri One Start Program
  • $250,000 for victims of sexual assault
  • $5 million for lottery pull tabs
  • $5 million for development of a live test for chronic wasting disease
  • $347,338 for industrial hemp program
  • $350,000 for a bicentennial celebration
  • $25,000 for Lieutenant Governor’s Buy Missouri Program
  • $300,000 for the brand new Missouri Military Community Reinvestment Program
  • $5 million for alternatives to jail program for pre-trial electronic monitoring aimed at saving counties and the state millions in prisoner per diem costs
  • $153,000 to fund the Time Critical Diagnosis Unit
  • 1.5 percent rate increases to Medicaid providers (returning to FY17 reimbursement levels)
  • $10.8 million for maintenance repairs due to flooding
  • $5.0 million for construction due to flooding
  • $6.4 million for port capital improvement projects