Governor Announces Restrictions to Ensure Balanced Budget
Governor Mike Parson has announced $180 million in expenditure restrictions to ensure a balanced state budget and the necessary funds to combat COVID-19 going forward. Last year, the state budget left $100 million on the bottom line in order to respond to any unforseen revenue shortfalls. COVID-19 has had serious impacts on anticipated economic growth, and the state is now expecting significant revenue declines.
To ensure a balanced state budget and the necessary funds going forward, Governor Parson is planning to reduce funding for several state departments including the Department of Higher Education and Workforce Development, Department of Transportation, Office of Administration, Department of Natural Resources, and the Department of Economic Development, among others.
In addition to the state budget restrictions, the Governor's Office is hopeful for an additional $315 million in federal funding this year to help with the shortfall.