Missouri’s Fiscal Year 2027 budget is now in effect following the Governor’s approval of the state’s operating and capital improvement appropriations bills.

The budget authorizes approximately $50.7 billion in spending across all funding sources, including roughly $15.7 billion in General Revenue, and funds state government operations through June 30, 2027.

Education and health care once again account for the largest portions of state spending, with funding provided for the K-12 foundation formula, school transportation, public colleges and universities, Medicaid services, behavioral health programs, and care for seniors and individuals with disabilities.

The budget also includes major investments in public safety, workforce development, infrastructure, agriculture, and economic development initiatives. Among those appropriations are funding for law enforcement training and equipment grants, career and technical education programs, business recruitment efforts, rural infrastructure projects, and support for Missouri farmers and agricultural producers.

While approving the budget, the Governor exercised his constitutional line-item veto authority on 65 appropriations totaling more than $30 million in General Revenue and placed expenditure restrictions on an additional 78 appropriations totaling approximately $441.3 million, including $337.2 million in General Revenue.

The administration cited concerns about the use of one-time revenues to support ongoing expenses and projections showing a potential budget shortfall exceeding $500 million in Fiscal Year 2028 as reasons for the reductions and spending restrictions.

Missouri’s new fiscal year began July 1, with state agencies now operating under the appropriations approved during the 2026 legislative session.

Governor completes action on 2026 legislation

The Governor has completed action on legislation approved during the 2026 legislative session, signing the remaining bills passed by the General Assembly into law.

Several of the most significant policy changes enacted this year focused on public safety.

New impaired driving laws increase penalties for repeat and fatal intoxicated driving offenses and establish financial support requirements for children who lose a parent or guardian as a result of a fatal impaired driving crash. Additional legislation updates drug trafficking laws and directs the state to establish uniform fire safety standards for state-inspected facilities, including childcare centers.

Lawmakers also approved legislation requiring age verification for adult websites containing material deemed harmful to minors, with enforcement authority assigned to the Attorney General’s Office.

In healthcare, legislation expands access to telehealth services by allowing patients to establish physician relationships remotely and broadens opportunities for licensed healthcare professionals to practice across state lines through interstate licensure agreements. Additional provisions increase transparency surrounding hospital pricing and health insurance prior authorization practices and provide new protections related to access to anesthesia services and diagnostic screenings.

Economic development legislation approved this year creates new incentives intended to attract large-scale capital investment projects to Missouri while extending and expanding redevelopment tools available to communities seeking to revitalize downtown districts and commercial corridors. Lawmakers also approved a new tax credit aimed at encouraging investment in Missouri startup businesses and entrepreneurs.

Agricultural legislation included extensions of several energy and agricultural tax credits, modifications to environmental permitting requirements, updates to land survey funding mechanisms, and exemptions from emissions testing requirements for certain older farm vehicles.

Education legislation established a new state commission to review appeals involving interscholastic athletic eligibility and competition decisions and provides additional oversight of organizations governing student activities.

Additional legislation enacted this year addresses elections, county government operations, public contracting, infrastructure protection, emergency response, military affairs, public employee retirement systems, professional licensing, and healthcare regulation.

Unless otherwise specified by an emergency clause or alternative effective date, legislation approved during the 2026 session will take effect Aug. 28, 2026.

Historic flooding prompts large-scale state response

Historic flooding in south central Missouri in early July prompted one of the largest emergency response efforts in recent years, as state and local agencies worked to rescue stranded residents and support affected communities.

Parts of Crawford, Iron, Madison, Reynolds, and Wayne counties received more than a foot of rain in a matter of hours, with some areas experiencing what officials described as a 1-in-1,000-year rainfall event. The flooding triggered more than 200 water rescues involving individuals stranded in homes, vehicles, trees, and floodwaters.

The Missouri National Guard was activated to assist response efforts, including the air evacuation of 202 campers and staff members from Camp Taum Sauk near Lesterville using eight Black Hawk helicopters. Missouri Task Force 1, the state’s Urban Search and Rescue Team, also deployed personnel to the region and participated in more than 100 rescues.

The State Emergency Management Agency, Missouri State Highway Patrol, Department of Transportation, and numerous local first responder agencies remain involved in ongoing recovery operations as communities assess damage and continue cleanup efforts.

Missouri Blue Shield Program continues expansion

Missouri’s Blue Shield Program continued to grow in its second year, with 350 local governments and school districts receiving the designation for their participation in public safety initiatives and law enforcement partnerships.

According to the Department of Public Safety, participation in the program increased by 74 percent from its inaugural year in 2025 and now includes 95 counties, 252 cities, two towns, and one school district.

Communities receiving the designation are eligible to apply for a share of $10 million in grant funding included in the FY27 budget for law enforcement equipment and training. Eligible uses include body-worn cameras, ballistic vests, patrol vehicles, security equipment, gunshot detection technology, and other public safety tools.

To qualify for the designation, participating communities must demonstrate commitments to public safety through investments in law enforcement, community policing initiatives, officer recruitment and retention efforts, participation in regional anti-crime partnerships, and compliance with state reporting requirements.

Please contact the office with any questions or concerns. My email is bruce.sassmann@house.mo.gov and the office phone number is 573-751-6668.