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Governor Kehoe Outlines Budget Plans in Annual State of the State Address
Governor Mike Kehoe delivered his State of the State address this week, outlining his administration’s priorities for the coming year and emphasizing economic growth, workforce development, public safety, and continued investment in core state services. Speaking before a joint session of the General Assembly, the Governor highlighted a conservative, growth-oriented agenda and unveiling his FY 2027 budget, marking one year since taking office as Missouri’s 58th governor. Kehoe emphasized restoring long-term fiscal sustainability as state revenues normalize following years of elevated spending fueled by one-time federal funds.
The governor’s budget reduces more than $600 million from the core general revenue budget to begin addressing a projected $2 billion structural imbalance, while continuing to fund mandatory obligations and preserving core support for K-12 education and higher education. Kehoe described the proposal as a return to pre-pandemic budgeting focused on core government functions and fiscal discipline.
Public safety remains the administration’s top priority, with $2.3 billion allocated for law enforcement, disaster response and veterans’ homes, including staffing, equipment, and facility upgrades. Economic development funding totals $2.1 billion, supporting job creation, workforce training, childcare, major capital investment, and preparations for the 2026 FIFA World Cup. Education funding reaches $10 billion, maintaining the foundation formula while expanding childcare, career training, accountability measures, and school choice initiatives. Healthcare spending totals $25.2 billion, largely driven by Medicaid and focused on rural healthcare access, mental health services, and substance use treatment.
During his State of the State address, Governor Kehoe specifically called on the General Assembly to advance several priority policy areas. Those include placing the elimination of the state income tax before voters through proposed constitutional amendments (HJR 165 and SJR 83), updating Missouri’s Renewable Energy Standard (HB 2807 and SB 383), and enhancing the Missouri Works program to better incentivize capital investments exceeding $50 million (SB 1443).
The Governor also urged action on reforms to the juvenile justice system (HB 2498 and SB 888), comprehensive sentencing reform (HB 2637, HB 2880, SB 882, SB 1294, SB 894, with another proposal forthcoming), and allowing pregnant women facing abuse to finalize divorce proceedings (HB 1908).
Additional priorities highlighted in the speech include increasing regulations on industrial solar developments (SB 849), establishing public school open enrollment (HB 2604 and SB 971), implementing A–F public school report cards (HB 2539 and SB 1194), and transferring oversight of the Missouri State High School Activities Association to the state (HB 2278 and SB 863).
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