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Government, Politics & Issues

Missouri Governor Releases All Budget Funds Previously Withheld At Height Of Pandemic

Parson announces statewide stay-at-home order extended until May 3
File | Office of Missouri Governor
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Missouri Gov. Mike Parson is restoring all funding previously withheld from the general revenue budget for 2021 because of the coronavirus.

Missouri Gov. Mike Parson announced Monday he will release the remaining $280.7 million he withheld from general revenue spending at the height of the coronavirus pandemic.

“Thanks to our balanced approach to COVID-19, Missouri is in a much better position than what was originally projected,” Parson said in a statement. “Our economy continues to come back strong, and we’re pleased to be able to release the remainder of these funds today.”

When Parson made the decision to restrict roughly $448 million in planned spending, the state was projected to reach an unemployment rate of just under 17%. Missouri now has an unemployment rate of just under 6%, Parson said.

The area hit hardest was K-12 education funding, which saw $123 million withheld from the foundation formula. Higher education saw a $27.9 million reduction, and community colleges had $18.4 million cut.

“Since I became governor, we spent more on public education than we have in the state’s history before this COVID-19 hit,” Parson said in June when he announced the withholding of funding. “I just believe in the future if we work hard, we get the economy back going, we’ll get those education dollars back in there so we can move this state forward.”

With Monday's announcement, the foundation formula is fully restored, along with other department spending.

In total, nearly 150 areas across the state’s government agencies saw a reduction in their budgets. Higher Education & Workforce Development, Health and Senior Services and the Department of Revenue are among the others that received funding.

For a full breakdown of the funding and the departments, click here.

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