Missouri State Budget FY2027 Analysis

Missouri spent $50.7 billion across all funds in FY2027, or $8,085 per resident. All-funds spending counts the general fund, federal grants, and dedicated state funds together — the fairest basis for comparing states, since they differ widely in how much they route outside the general fund.

The general fund — the discretionary portion the legislature actually debates — was $15.7 billion, or 31.0% of total spending. The remainder is largely federal grants (Medicaid above all) and dedicated revenues such as fuel taxes earmarked for highways.

Missouri's FY2027 budget, signed June 30, 2026, appropriates $50.7 billion in total ($49.8 billion in the operating budget), essentially flat against the $50.8 billion FY2026 plan, with general revenue spending of $15.7 billion versus $15.4 billion a year earlier. Gov. Mike Kehoe paired his signature with unusually aggressive restraint: 65 line-item vetoes stripping more than $30 million in general revenue and 78 spending withholds freezing over $440 million — including $337 million of general revenue — a signal the administration doubts collections will support everything lawmakers funded. Education takes the largest share, with nearly $10 billion across K-12 and higher education, while public safety spending exceeds $2 billion. School choice advances through a $60 million general revenue appropriation for the Empowerment Scholarship Account program, and the state committed $91.9 million (partly federal) toward Kansas City's hosting of the 2026 World Cup. The reliance on withholds rather than outright vetoes preserves flexibility to release funds later if revenue outperforms, but it leaves school, health and local project money uncertain at the fiscal year's start — the withheld general revenue ($337 million) is more than ten times the amount actually vetoed. Kehoe framed the package as funding necessary investments while taking a step toward right-sizing government. The near-zero topline growth stands out at a moment when several peer states are still expanding spending, and the balance between legislative add-ons and executive restraint — resolved this year through the veto pen — is likely to define Missouri's FY2028 cycle as well.