{"id":8511,"date":"2026-01-20T17:44:53","date_gmt":"2026-01-20T23:44:53","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/01\/20\/missouri-discovers-250m-budget-mistake-but-officials-warn-spending-squeeze-remains\/"},"modified":"2026-01-20T17:44:53","modified_gmt":"2026-01-20T23:44:53","slug":"missouri-discovers-250m-budget-mistake-but-officials-warn-spending-squeeze-remains","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/01\/20\/missouri-discovers-250m-budget-mistake-but-officials-warn-spending-squeeze-remains\/","title":{"rendered":"Missouri discovers $250M budget mistake, but officials warn spending squeeze remains"},"content":{"rendered":"

\"\"<\/p>\n

Missouri budget director Dan Haug said Tuesday that a calculation error is why the state general revenue balance was originally projected to be $4.7 million in fiscal 2027. He is shown speaking during the 2024 legislative session to the House Budget Committee (Rudi Keller\/Missouri Independent).<\/p>\n

Missouri\u2019s budget picture brightened slightly this week with the discovery of a $250 million error in state projections, though lawmakers were warned Tuesday the change isn\u2019t enough to take tight controls off state spending.<\/span><\/p>\n

State Budget Director Dan Haug told the House Budget Committee that more than $100 million in disaster relief appropriations were mistakenly counted in next year\u2019s spending and in the current year.<\/span><\/p>\n

As a result, instead of the <\/span>$4.7 million ending balance<\/span><\/a> in the coming fiscal year, Missouri\u2019s general revenue fund will hold $261 million. That new projection, if accurate, would still be the lowest general revenue balance to end a fiscal year since 2018.<\/span><\/p>\n

\u201cWhile that does make our bottom line better, it does not change the fundamental issue that our ongoing expenditures are more than our ongoing revenues,\u201d Haug said. \u201cIt doesn\u2019t change either of those two numbers.\u201d<\/span><\/p>\n

The state treasury held $4.3 billion of general revenue on June 30, the final day of fiscal 2025. That is down from a historic high of $5.7 billion at the end of fiscal 2023 as lawmakers have spent more than taxes for general revenue have generated over the past two years.<\/span><\/p>\n

The current budget continues that trend. With supplemental items requested by Gov. Mike Kehoe, the state will budget $16.2 billion of general revenue in the current year, about $3.1 billion more than is expected in revenue.\u00a0<\/span><\/p>\n

As a result, $2 billion will remain on June 30, the governor\u2019s budget projects.<\/span><\/p>\n

Kehoe\u2019s budget for the next fiscal year, delivered to lawmakers Jan. 13, anticipates general revenue appropriations to total $16.3 billion, with revenues expected to be $13.6 billion.<\/span><\/p>\n

The extra money revealed by correcting the calculation error will make it easier for the state to keep up with current bills in future years but isn\u2019t enough to add any spending beyond Kehoe\u2019s budget proposal, said House Budget Committee Chairman Dirk Deaton, a Republican from Noel.<\/span><\/p>\n

\u201cIt didn\u2019t change anything, because really, $4 million wasn\u2019t a good place to be,\u201d Deaton said.<\/span><\/p>\n

The variables in the forecast, which will determine the actual fund balance, are how fast the state will complete $1.3 billion of multi-year construction projects and how close the state is on estimating operating budgets.<\/span><\/p>\n

More than $900 million set aside for state operations in fiscal 2025 was unspent, but the budget anticipates that figure will be only $350 million in the coming fiscal year and uses that money to balance spending and revenues.<\/span><\/p>\n

The updated forecast can be debated but it is not far off, Deaton said.<\/span><\/p>\n

\u201cI could come up with one a little different, and reasonable people could probably argue about it,\u201d Deaton said. \u201cI can\u2019t point to anything and say this is ridiculous.\u201d<\/span><\/p>\n

The updated forecast gives Democrats ammunition to push for their spending priorities, said state Rep. Betsy Fogle of Springfield, the ranking Democrat on the House Budget Committee.<\/span><\/p>\n

There should be more money available, Fogle said. She noted that the state Board of Education requested a $190 million boost to the foundation formula, the state\u2019s main source of public school funding, that Kehoe did not recommend.<\/span><\/p>\n

\u201cWhat that changes is the governor signaled that he was comfortable spending down to $4.7 million, and I find it somewhat ironic that now he\u2019s saying he needs to keep this additional $260 million on the bottom line as well, when there are things that I would argue we could be doing,\u201d she said.<\/span><\/p>\n

Republicans who hold all the state offices and a legislative supermajority have said for years the state should sock away money for lean times, Fogle said. But now that a budget crunch is here, she said, there\u2019s no money to defer cuts.<\/span><\/p>\n

Kehoe\u2019s budget anticipates he will have to limit spending on almost $300 million in spending included his budget to produce the $261 million fund balance. The message from Kehoe and Haug is that there is no room for increases, Fogle said.<\/span><\/p>\n

\u201cIt has been made clear by both the State of the State (address) and director Haug\u2019s comments today,\u201d Fogle said, \u201cthat there\u2019s absolutely no appetite to add any spending from the governor\u2019s original recommendations.\u201d<\/span><\/p>","protected":false},"excerpt":{"rendered":"

Missouri budget director Dan Haug said Tuesday that a calculation error is why the state general revenue balance was originally projected to be $4.7 million in fiscal 2027. He is shown speaking during the 2024 legislative session to the House Budget Committee (Rudi Keller\/Missouri Independent). Missouri\u2019s budget picture brightened slightly this week with the discovery…<\/p>\n","protected":false},"author":2,"featured_media":8512,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nMissouri discovers $250M budget mistake, but officials warn spending squeeze remains - WestplexNews.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westplexnews.com\/index.php\/2026\/01\/20\/missouri-discovers-250m-budget-mistake-but-officials-warn-spending-squeeze-remains\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Missouri discovers $250M budget mistake, but officials warn spending squeeze remains - WestplexNews.com\" \/>\n<meta property=\"og:description\" content=\"Missouri budget director Dan Haug said Tuesday that a calculation error is why the state general revenue balance was originally projected to be $4.7 million in fiscal 2027. 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