JEFFERSON CITY, MO — On Monday, Gov. Mike Parson signed the FY20 budget bills passed by the General Assembly, which focused on ongoing improvements to infrastructure and workforce development and investing in Missouri’s public servants.
“Every year, the legislatures are committed to protecting taxpayers’ hard-earned money,” Gov. Parson said. “We are proud of the General Assembly and their efforts with the fiscal year 2020 budget. They have created a fiscally-responsible, balanced budget that will move Missouri forward.”
The total state budget is approximately $30.0 billion, including $10.2 billion general revenue. This budget also leaves $185 million set aside for future budgets. In signing the FY20 budget bills, the governor issued zero line-item vetoes and issued no withholds, as a result of strong economic performance.
From the beginning, infrastructure has been touted as a top priority for Gov. Parson and his administration. Missouri will begin meeting infrastructure needs across the state without raising taxes by funding the following items within the existing budget:
• $351.0 million for replacement and repair of bridges, including $50.0 million one-time General Revenue and $301.0 million from bonding, contingent upon the award of the federal INFRA Grant.
• $50.0 million for a transportation cost-share program with local communities.
• $10.8 million State Road Fund for maintenance repairs due to flooding.
• $5.0 million State Road Fund for construction due to flooding.
• $6.4 million for port capital improvement projects.
• $5.0 million for grants to provide broadband access to under-served areas pursuant to HB 1872 (2018).
• $10 million for the Multipurpose Water Resource Program, including the planning, design, construction, or renovation of public water supplies, flood control storage, drought, mitigation, and public water supply treatment or transmission facilities.
Another top priority for Gov. Parson this session was creating and improving Missouri's workforce development programs. A comprehensive economic development strategy was established to include several key elements of the governor’s workforce development priorities, which includes:
• $18.9 million for the MO Excels Workforce Initiative, which develops and expands employer-driven education, training programs, and initiatives to substantially increase educational attainment.
• $10.0 million Lottery Proceeds Fund to support the Fast-Track Workforce Incentive Grant Program.
• $61.4 million to fully fund the education foundation formula.
• $5.0 million for transportation funding for schools.
• $10.4 million for the Missouri One Start Program to provide new and expanding industry training programs and basic industry retraining programs.
The governor is reportedly also committed to moving state team member salaries to be competitive with Missouri market rates. This is part of his back-to-basics management reform agenda, which includes:
• Funding for 53,932 FTEs, a reduction of 478 from FY19.
• $30 million to fund a 3 percent cost of living adjustment (COLA) increase for state employees, except MoDOT, which has its separate pay plan. This 3 percent COLA comes on top of the FY19 increase of $700 — or 1 percent for those earning over $70,000 per year. This means that the average state employee’s salary will increase more than 4 percent in the FY19 and FY20.
• $8.9 million for salary increases in the Department of Corrections to recruit and retain employees.
• $4.9 million for MoDOT salary adjustments to address pay grid compression across government.
• $5.3 million for targeted pay adjustments for about 4,500 employees to bring their salaries toward market minimum levels.
In addition, the budget incorporated the governor’s proposal to improve economic and workforce development through a reorganization of state government that was overwhelmingly supported by the General Assembly. These changes will reportedly streamline state government and ensure it produces better outcomes for Missourians, which leads to better efficiency and long-term cost savings.
Gov. Parson said, “It’s important to run Missouri with a fiscally responsible, balanced budget. We appreciate all the people involved who work extremely hard to accomplish this mission.”