Missouri Lawmakers Finalize Budget Without Education Funding Increases
Missouri lawmakers finalized a state budget Monday with no funding increases for schools or universities, leaving a $190 million education law unfunded.
JEFFERSON CITY, MISSOURI — Missouri lawmakers completed work on a final state budget Monday that provides no increases for public education programs, leaving unfunded a $190 million education law passed in 2024.
The compromise budget, developed during a six-hour conference committee meeting, falls between the Senate’s $50.8 billion proposal and the House’s $52.4 billion version. General revenue spending will total approximately $16 billion, requiring up to $2.4 billion from surpluses accumulated between 2021 and 2023 to cover the deficit to expected revenue.
Education Funding Remains Flat
The budget provides no increases in basic state aid to public schools or higher education institutions. This decision means lawmakers will not fund the $190 million cost of a 2024 education law as requested by the Department of Elementary and Secondary Education.
For community colleges and state universities, the flat funding means no immediate implementation of a proposed enrollment-based funding formula that would have cut some schools by 40% or more.
Budget Negotiations Led by Committee Chairs
House Budget Committee Chairman Dirk Deaton, R-Seneca, and Senate Appropriations Committee Chairman Rusty Black, R-Chillicothe, presented pre-negotiated decisions to other lawmakers during the conference committee meeting. Their recommendations were largely accepted with minimal challenges from other committee members.
“We are still well below what the governor proposed,” Deaton said after the budget work concluded.
Republican Governor Mike Kehoe had requested $54.5 billion in total spending and $16.3 billion in general revenue appropriations in his January budget message. The final compromise falls significantly short of those requests.
Surplus Funds Required to Balance Budget
The budget plan relies heavily on surplus funds accumulated during previous years to maintain current spending levels. The general revenue fund balance, which peaked at $8 billion in recent years, will be drawn down to cover the gap between projected revenue and planned expenditures.
Final budget figures were not immediately available following Monday’s negotiations, but lawmakers indicated the spending plan would take effect July 1, marking the beginning of the new fiscal year.
The decision to maintain flat education funding comes as Missouri schools and universities face ongoing financial pressures. The unfunded 2024 education law was designed to boost public school resources, but its implementation will be delayed without the requested state appropriation.
State universities and community colleges will continue operating under current funding levels rather than transitioning to the proposed enrollment-based formula that would have redistributed resources based on student populations.
