Dan Haug | St. Louis Public Radio

Dan Haug

Parson announces $448 million in withholds for the FY 2021 state budget
Jaclyn Driscoll | St. Louis Public Radio

Missouri Gov. Mike Parson announced that he signed the state budget on Tuesday but is withholding $448.8 million in order to keep it balanced after the state’s economy was ravaged by the coronavirus. 

The area hit hardest is K-12 education funding. According to the Office of Administration, $123.3 million will be withheld from the foundation formula. Higher education is expected to see the next-largest reduction in planned spending, with $27.9 million in withholds, and community colleges will see $18.4 million. 

Medical workers collect a sample from a patient at Mercy Health's drive-through novel coronavirus test collection site in Chesterfield on Monday afternoon, March 16, 2020.
File photo |Carolina Hidalgo | St. Louis Public Radio

As the coronavirus pandemic rages on, Missouri lawmakers say they are planning to return to Jefferson City next week to pass a supplemental budget that includes millions of state and federal dollars to help deal with the outbreak. 

Missouri Gov. Mike Parson’s budget plan includes a raise for all state employees, who on average are the lowest-paid in the nation.

“We're going to invest in the state workforce,” state budget director Dan Haug said. “We have had some studies done and we had employees below what the market minimums were, so we're going to try to get almost all of our employees up to that.”

Statewide population data shows that females in Missouri ages 16 and older who work full-time jobs all year won’t earn as much as men until 2066.
Rici Hoffarth | St. Louis Public Radio

Missouri’s general-revenue income is down about $110 million, compared to a year ago, largely because of federal tax cuts.

But state budget director Dan Haug is optimistic that this fiscal year will show better numbers during its second half.

“Because we finished last year so strong, revenue can actually decline by half a percent and we would hit our budget estimate,’’ the budget chief said.

Susannah Lohr | St. Louis Public Radio

Despite an income downturn in July, Missouri budget director Dan Haug says the state is starting its new fiscal year in stronger shape than it has seen in years.

That’s because the fiscal year that ended June 30 saw a last-minute surplus of $350 million that is providing an income cushion.

So unlike his recent predecessors, Gov. Mike Parson hasn’t had  to impose additional spending cuts.

Public schools and other institutions in Missouri that receive state money likely won’t see any last-minute cuts before the fiscal year ends June 30, budget chief Dan Haug said Friday.

That’s even with the state’s income collections running slightly behind estimates used to craft the current budget.

Susannah Lohr | St. Louis Public Radio

Despite all the talk about Missouri’s shaky income numbers, the state’s revenue collections have picked up significantly in recent months, which could help ease legislators’ concerns as they finish fashioning a budget for the fiscal year that begins July 1.

In other words, if trends continue, lawmakers might not have to cut as much as they planned.

Tax credits | Flickr

Although Missouri’s state revenue collections dropped slightly in December, the state’s budget chief says plans are still on track for Gov. Jay Nixon to base his budget proposal on a hoped-for 4.1 percent income hike during the coming fiscal year.

Missouri Budget Director Dan Haug says Nixon and the General Assembly’s budget chairmen have tentatively agreed on that income growth estimate to use in crafting budgets. Based on the 4.1 percent hike,  $360 million in additional revenue should be available for the fiscal year that begins July 1.