Lawmakers have given final approval to a state spending plan that allocates record levels of funding to the state’s system of education and vital infrastructure. The budget plan also provides funding for programs that assist the state’s most vulnerable citizens, increases support for law enforcement and public safety, invests in the state’s workforce, and provides funding for a one-time economic recovery tax credit.
The House and Senate were able to compromise on the various differences in the plans approved by either side and send the state spending plan to Gov. Parson before the 6 p.m. deadline on Friday, May 6. The finalized version of the state operating budget contains approximately $44.7 billion in funding for the upcoming fiscal year that begins July 1.
The budget includes billions of dollars in new funding for K-12 education, which includes full funding for the state’s K-12 foundation formula. In total, House members approved nearly $10.4 billion in funding for K-12 education, which represents an increase of more than $2.9 billion in funding when compared to the previous budget. That increase is fueled primarily by an additional $2.4 billion in federal funding. The final version of the budget includes a funding boost of $214 million for school transportation, which fully funds the school transportation formula.
The plan also takes significant steps to improve teacher pay in Missouri. It includes an additional $21.7 million to provide voluntary grants to local school districts, which can use the funds to help raise minimum teacher pay to $38,000 annually. Districts that opt-in will see the majority of the increase funded by the state with the remainder funded by the district. The budget also allocates approximately $37.4 million to revive the Career Ladder program, which allows school districts to supplement the pay of teachers who take on additional duties. Additionally, the House plan invests $50 million in newly-created Close the Gap grants that will help Missouri families address the learning loss that occurred as a result of the pandemic.
Lawmakers also boosted funding for the state’s institutions of higher learning. Core funding for Missouri’s institutions of higher learning is increased by nearly $43 million for the state’s four-year institutions, and by more than $8 million for the state’s community colleges. The budget also works to make college more affordable for Missouri students by increasing funding for the A+ Scholarship Program by $6 million and the Access Missouri Scholarship Program by $9 million, which fully funds the programs. The budget plan also includes an additional $3.5 million for the Bright Flight Scholarship program, which fully funds the program to provide full scholarships to the top 5 percent of test-takers.
The finalized budget plan also makes a strong investment in the state’s transportation infrastructure. The spending plan allocates nearly $148 million in new funding from the State Road Fund, which is used for the maintenance and construction of roads and bridges. The spending plan also includes $100 million for rural roads around the state that have fallen into disrepair. Additionally, the plan allocates $75 million in federal funds for the Transportation Cost-Share Program that partners with local municipalities to fund road repairs. The plan includes $25 million to help expand river ports in the state, an additional $25 million to expand the port in Jefferson County, and another $5 million for the port in New Madrid County. The state’s Amtrak service also receives $2.4 million in funding that will allow it to resume twice-daily rail service across the state.
Additionally, the plan provides a significant funding boost for water infrastructure projects It includes $49.2 million in federal funds for the Rural Broadband Grant Program and $250 million in federal funding for the broadband infrastructure program.
The spending plan also provides substantive increases to many of the programs that serve the state’s most vulnerable citizens. The budget provides nearly $674 million for rate increases for home and community-based service providers, which allow Missourians who are most in need to stay in their homes. It also provides more than $29 million in new funding for the state’s Area Agencies on Aging (AAA) and an additional $15.1 million for the AAAs to expand meal production capacity. The budget increases funding for the Veterans Health and Care Fund by more than $6 million to help further support the state’s veterans’ homes. Additionally, it provides more than $16 million in funding for a mental health hotline program. Other funding increases include $20.5 million for the Children’s Trust Fund for grant programs that will assist children who are victims of sexual abuse and neglect, $2.2 million for Alternatives to Abortion, and $5.8 million for autism diagnostic centers.
The House’s plan to provide substantive tax relief also took a significant step forward as the General Assembly approved $500 million in funding for a one-time economic recovery tax credit for Missouri residents who paid personal income tax in the state for 2021.
If you have any questions regarding any state matters or legislation, please don’t hesitate to contact email me at Darrell.Atchison@house.mo.gov or call 573-751-1066.
It is an honor to serve as your State Representative.
Atchison represents District 153, which includes Carter and Ripley counties and parts of Wayne and Butler counties.