Governor Parson Takes Action on FY23 State Operating Budget Bills

JUNE 30, 2022

Jefferson City — Today, Governor Mike Parson signed Fiscal Year 2023 (FY23) state operating budget bills, approving historic investments in Missouri's infrastructure, communities, workforce, education systems, public safety resources, and public services.

"We want to thank all of the legislators who helped pass this historic budget that cements our state's strong financial position and provides tremendous opportunities for Missourians, both today and tomorrow," Governor Parson said. "Informed by the needs of Missourians all across the state, we have once again passed a balanced and conservative budget that benefits every Missourian."

"With record revenues, strong economic performance, and significant sums of Missourians' federal tax dollars returning to our state, this session we met the moment and approved strategic investments that will serve generations of Missourians," Governor Parson continued.

The Missouri FY23 state operating budget is approximately $47.5 billion, including $12.5 billion in general revenue. Additionally, Governor Parson issued 32 line-item vetoes, totaling nearly $644 million. To view the complete list of budget vetoes, click here.

During his 2022 State of the State Address, Governor Parson asked the General Assembly to invest in infrastructure projects all across the state, from the hardest routes to fund in rural areas to underserved communities in urban areas. The FY23 budget bills include hundreds of millions of dollars for critical infrastructure projects:

$608 million for investments in drinking water, wastewater, and stormwater infrastructure;
$356.5 million for broadband expansion projects;
$160 million for efficient and innovative transportation projects across the state;
$100 million for rural route repair projects;
$75 million for the Transportation Cost-Share program;
$8.5 million for rural health telehealth access; and
$12.9 million for public transit.

For future Missourians to have the best possible outcomes, Governor Parson understands that the state must take action today. To accomplish this, he knows that workforce development and education initiatives must work together. The FY23 budget prioritizes investments in both education and workforce development systems to skill up Missourians:

$3.6 billion to again fully fund the K-12 Foundation Formula;
$460.1 million for capital improvement projects at public higher education institutions;
$429.5 million to strengthen the state's child care and early childhood education network;
$328.4 million to fully fund school transportation needs;
$75 million to develop new shovel-ready industrial sites;
$51.6 million core funding increase for state four-year higher education institutions;
$31.5 million for the third year of MoExcels projects and employer-driven workforce training investments;
$30 million for Missouri One Start to assist employers, train and upskill workers, and upgrade training infrastructure;
$21.8 million to partner with schools districts to increase baseline K-12 educator pay to $38,000 per year;
$20 million to upgrade and improve Missouri's 57 area career centers;
$16 million for the Missouri Technology Corporation to promote entrepreneurship and innovation;
$10 million for higher education agricultural innovation in education workforce programs;
$10 million for MoExcels program projects at private non-profit institutions;
$9.1 million for Missouri One Start;
$7 million for dual credit and enrollment scholarships;
$6 million for A+ schools program; and
$500,000 for Jobs for America's Graduates.

While the past few years have been hard on Missouri communities, there are now opportunities for once in a lifetime investments that strengthen the future success of every community: rural, urban, and suburban. Governor Parson called on lawmakers to fund projects that improve the health, safety, and economic well-being of communities across the state, and the FY23 budget answers that call:

$955 million for provider rate standardization and to improve MO HealthNet program integrity and access to care for vulnerable Missourians;
$148.7 million for community provider capital improvements and to expand services to underserved populations;
$104.7 million for a new public safety crime lab that will assist local law enforcement agencies;
$100 million for Community Development and Revitalization grants;
$94.9 million to invest in new small businesses;
$78.6 million for the construction of a new multidisciplinary state health lab;
$50 million for developmental disability and behavioral health services;
$30 million for local tourism asset development;
$30 million for a first responders grant program;
$30.5 million to implement the 988 Crisis Hotline;
$29.2 million for Area Agencies on Aging;
$24 million for services for victims of crime;
$12.8 million for substance use response grants for local governments;
$5.8 million for Missouri Autism Centers;
$4.4 million for 911 dispatch centers;
$2.5 million for the Prescription Drug Monitoring Program to help combat the opioid crisis;
$1 million for law enforcement academy scholarships;
$550,000 for crisis counseling services for law enforcement officers; and
$420,000 for Youth Behavioral Health Liaisons.

In order to increase opportunities for Missourians' success, state government must also look to continually improve the services it provides to citizens. This year, Governor Parson is approving needed upgrades and investments in state government:

$500 million extraordinary payment to the Missouri State Employee Retirement System;
$228 million to continue state employee pay raises provided in the 2022 Supplemental Budget Bill;
$126.1 million to develop and modernize online government services;
$100 million to accelerate the repayment of outstanding bond debt, a $148 million saving to taxpayers;
$34.8 million for a state employee retirement savings incentive, up to a $75 match per month;
$27.3 million to modernize the child support system;
$16.8 million for MO HealthNet eligibility redeterminations; and
$7 million to update the Division of Youth Services Case Management system.

"This past session was often obstructed by petty infighting and personal political interests, but common sense prevailed," Governor Parson said. "We applaud members of the General Assembly for capitalizing on this opportunity and prioritizing the continued success of our state."

To view the FY23 state operating budget bills, click here.