By Allen Andrews October 15, 2020
Improving Economy Prompts Governor to Release Withheld Funds
The state’s improving economy and rising revenue totals have prompted Gov. Mike Parson to release funds that were previously withheld to ensure a balanced budget. Parson announced the release of more than $38 million in general revenue, as well as the issuance of nearly $95 million in CARES Act funding. The $133 million in funding will go to critical services in several areas, with nearly $100 million going to support K-12 and higher education.
Parson said, “When we evaluated the impact of COVID-19 on Missouri’s economy and state revenues back in June, we had to make some difficult decisions to keep our budget balanced. However, we promised to reevaluate our spending after the first quarter of Fiscal Year 2021, and that is what we have done.”
Earlier in the year, the state restricted approximately $436 million in spending in an effort to keep the budget balanced during the COVID-19 pandemic. The decision to withhold that amount was based in part on a projection of approximately 16.3 percent unemployment in the state. Today, the state’s current unemployment rate is at 7 percent, which is significantly less than what was projected and lower than the current national rate. The state also saw net general revenue collections for September 2020 increase by 3 percent compared to September 2019, increasing from $917.3 million last year to $944.5 million this year.
Parson said, “As a result of our Show Me Strong Recovery Plan, we are outpacing our projected budget forecast, and we are now in a position to release some of the funding that was restricted earlier this year. We are excited to be able to announce these funds today and will continue to evaluate our budget and spending as we move forward.”
The governor is directing $61.5 million of CARES Act funding to K-12 education, which will be distributed to school districts through the Department of Elementary and Secondary Education on a per-pupil basis. The remainder of the CARES Act dollars will help support private colleges and universities, assisted living and residential care facilities, child care providers, and independent living centers. The funds will also help citizens suffering from substance use disorders access additional recovery services.
Private colleges and universities will receive $10 million in CARES Act funding. $26 million in general revenue will go to higher education, including public community colleges and four-year higher education institutions. The remainder of the general revenue funds will help build on Missouri’s infrastructure and serve military communities, improve access to critical services for senior citizens and developmentally disabled citizens, help those experiencing barriers to entering the workforce, and help fight violent crime through the Attorney General’s Safer Streets Initiative. The funds will also help ensure that individuals receiving government assistance actually qualify for that assistance, ensuring better accountability for taxpayer dollars.
As always, it is an honor to serve you.
Representative Allen Andrews, District 1
Missouri State Capitol, Room 407
201 West Capitol Avenue • Jefferson City, MO 65101
Telephone: 573-751-9465
Allen.Andrews@house.mo.gov
