Issues vetoes and expenditure restrictions to ensure a responsible, balanced budget





From the Communications Office of Governor Mike Kehoe





Mike Kehoe Missouri Governor
Governor Kehoe Takes Action on FY27 State Budget Bills 

"Issues vetoes and expenditure restrictions to ensure a responsible, balanced budget "






*FOR IMMEDIATE RELEASE*

*June 30, 2026*

*JEFFERSON CITY, MO *– Today, Governor Mike Kehoe signed the Fiscal Year 2027 (FY27) state operating and capital improvement budget bills totaling $50.7 billion, delivering a responsible, balanced budget that invests in Missouri’s priorities while preparing for the years ahead and protecting taxpayer dollars.

“I appreciate the members of the General Assembly for their partnership in passing a budget that reflects our shared commitment to fiscal discipline and responsible stewardship of taxpayer dollars,” said *Governor Kehoe*. “After several years of historic growth in spending, this budget funds smart and necessary investments, while also taking an important step toward right-sizing government to ensure Missouri remains positioned for long-term success.” 

The Missouri FY27 state operating budget is approximately $49.8 billion after vetoes, including $15.7 billion in general revenue.

The budget includes critical investments in Governor Kehoe’s key priority areas, including:


* *Public Safety* – $2 billion to support safer communities and law enforcement across Missouri, including funding for Missouri Blue Shield grants, Operation Relentless Pursuit, law enforcement academy scholarships, and more. Public safety budget highlights. [ [link removed] ]
* *Economic Development* – $338 million to drive business growth and innovation in the state. These budget items include funding for the Missouri Technology Corporation, a statewide apprenticeship program, Missouri One Start, and a public-private-employee shared funding child care model. Economic development highlights. [ [link removed] ]
* *Agriculture* – $59.4 million to support Missouri farmers, producers, and rural communities through investments in infrastructure and programs, including low-volume roads, Missouri FFA, and more. Agriculture budget highlights. [ [link removed] ]
* *Education* – $9.8 billion to strengthen Missouri’s education system, including the K-12 education foundation formula and transportation, Empowerment Scholarship Account Program, career and technical centers, and higher education. Education budget highlights. [ [link removed] ]
* *Healthcare* – $24.8 billion to support individuals with physical, developmental, and behavioral health needs. These budget items include funding for self-directed supports, outpatient competency restoration, and Medicaid reform. Healthcare budget highlights. [ [link removed] ]

While the General Assembly's budget largely stayed within the bounds of the Governor's recommendation, it did so by using $179.1 million of one-time cash to pay for ongoing costs.

Additionally, despite efforts to curtail government spending, the state faces a projected shortfall of more than $500 million in FY28.

“State government doesn’t have a revenue problem, we have a spending problem, and continuing to spend faster than we grow our economy is not a sustainable path forward,” *Governor Kehoe* said. “Our work doesn’t end with balancing this year’s budget. By maintaining fiscal discipline and continuing to grow Missouri’s economy, we are building the foundation for an even more strong and resilient Missouri.”

To fulfill his constitutional obligation of signing a balanced budget, Governor Kehoe issued 65 vetoes, totaling over $30 million in general revenue. View the complete list of budget vetoes. [ [link removed]:*2F*2Fbudplan.oa.mo.gov*2Fmedia*2Fpdf*2Ffiscal-year-2027-veto-listpdf/1/0100019f1a3620fa-e275987e-ac80-4897-81ca-8eb099502a77-000000/3KmyJwmw9tLaUJXEligRICiNbu-_GArrBiPsPE37Ozs=452__;JSUlJSU!!I_2Np51FQg!j3kqkh_XrRzArBPHxq8FhkrXTXZKuZoAnLvA2quUAWGvhw9S-b_wbE5QjXPbHScNReXQhLPeVG5USXFTTOZapwGv8I1KpwwgXbenkQuJ-VS6Y08%24 ]

He also issued 78 expenditure restrictions, totaling $441.3 million, including $337.2 million in general revenue. View the complete list of expenditure restrictions. [ [link removed]:*2F*2Fbudplan.oa.mo.gov*2Fmedia*2Fpdf*2Ffiscal-year-2027-restrictions-july-1/1/0100019f1a3620fa-e275987e-ac80-4897-81ca-8eb099502a77-000000/09xJ7gLgXl1oD2qZ2AY52PHUbihwwonGgkn-iF-XsCs=452__;JSUlJSU!!I_2Np51FQg!j3kqkh_XrRzArBPHxq8FhkrXTXZKuZoAnLvA2quUAWGvhw9S-b_wbE5QjXPbHScNReXQhLPeVG5USXFTTOZapwGv8I1KpwwgXbenkQuJpqfzi8g%24 ]

The Governor’s budget vetoes and expenditure restrictions were largely limited to new projects, improper funding sources for new appropriations, or an over appropriation of various funds.

Additional Budget Resources: 


* Complete List of Budget Vetoes [ [link removed]:*2F*2Fbudplan.oa.mo.gov*2Fmedia*2Fpdf*2Ffiscal-year-2027-veto-listpdf/2/0100019f1a3620fa-e275987e-ac80-4897-81ca-8eb099502a77-000000/CF9LgRBr8OrhrZFSxHfk4OexC_nH3JCmKxCC1B6ijHM=452__;JSUlJSU!!I_2Np51FQg!j3kqkh_XrRzArBPHxq8FhkrXTXZKuZoAnLvA2quUAWGvhw9S-b_wbE5QjXPbHScNReXQhLPeVG5USXFTTOZapwGv8I1KpwwgXbenkQuJg_J1sM0%24 ]
* Complete List of Expenditure Restrictions [ [link removed]:*2F*2Fbudplan.oa.mo.gov*2Fmedia*2Fpdf*2Ffiscal-year-2027-restrictions-july-1/2/0100019f1a3620fa-e275987e-ac80-4897-81ca-8eb099502a77-000000/yCOafH8aGL8p11TzZRqJeYYEkZiVZxyJpxBIeDn4Av8=452__;JSUlJSU!!I_2Np51FQg!j3kqkh_XrRzArBPHxq8FhkrXTXZKuZoAnLvA2quUAWGvhw9S-b_wbE5QjXPbHScNReXQhLPeVG5USXFTTOZapwGv8I1KpwwgXbenkQuJLsew8eQ%24 ]
* FY27 State Operating Budget Bills [ [link removed]:*2F*2Fbudplan.oa.mo.gov*2Fappropriation-bills-fiscal-year-2027/1/0100019f1a3620fa-e275987e-ac80-4897-81ca-8eb099502a77-000000/7ezWh-ngz8F_r_9HgO-c8XOYCyFPFm8TTc4rKAbwrCo=452__;JSUl!!I_2Np51FQg!j3kqkh_XrRzArBPHxq8FhkrXTXZKuZoAnLvA2quUAWGvhw9S-b_wbE5QjXPbHScNReXQhLPeVG5USXFTTOZapwGv8I1KpwwgXbenkQuJo8l7zkk%24 ]
* PHOTO: Governor Kehoe Signs FY27 State Budget Bills  [ [link removed] ]

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Governor Mike Kehoe


About Governor Mike Kehoe

Mike Kehoe was sworn in as Missouri’s 58th Governor on January 13, 2025. Guided by a dedication to public service and a commitment to Missouri families, Governor Kehoe has made public safety, education, economic development, and agriculture the cornerstones of his administration.






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Contact: Gabby Picard

Communications Director

Mobile: 573-536-6566 [ tel:5735366566 ]

Email: [email protected]

Website: www.governor.mo.gov [ [link removed] ]







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