Budget Update

The House Budget and the Senate Appropriations Committees dedicated most of the week considering several department presentations relating to ongoing operating expenses and new decision items (NDIs).

The House Budget Committee spent a good amount of time educating new members on the budget process before turning, in Monday, to review of HB 20, which contains nearly $2.6 billion in American Rescue Plan Act (ARPA) funds – approximately $1.2 billion of which has been spent. All ARPA funds must be fully expended or transferred to the state’s school foundation formula by the end of 2026. The House committee also reviewed the remaining Capital Improvement bills (HB 17, HB 18, HB 19). The remainder of the week saw the Office of Administration, National Guard, the Department of Revenue, MoDOT, the Department of Agriculture, and the Department of Natural Resources present their budget requests. House Budget Sub-Committees are expected to begin shortly, where they will draft recommendations to submit to the full Committee for review.

The Senate Appropriations Committee dedicated its week to reviewing operating budget requests and NDIs from the Department of Labor and Industrial Relations, the Department of Agriculture, the Department of Corrections, and the Department of Public Safety. Many questions centered around ongoing funding sources and impacts of potential federal funding losses.

In other fiscal news, state revenues declined in January, after an increase in December. Revenues for January 2025 declined 11.5% from January 2024 revenues, bringing the state’s fiscal year-to-date position at negative 2.1%, a decrease of $167 million.