Next week, Gov. Mike Kehoe plans to roll out his state budget proposal. He told reporters today in Jefferson City that Missouri’s budget for the next fiscal year is going to be tighter.

“I think it’s going to be even more tighter next year and the year after,” said Kehoe. “Most of that is due to the federal decreasing money flow that we had, that we saw highs in COVID and after COVID.”

He said the state’s biggest challenge will be balancing the budget while also making sure that essential services are funded.

“We’ll get through it,” said Kehoe. “Revenues are growing, so we think that’s a good thing. We want to keep the economy…I’m optimistic with the new leadership in Washington D.C. that revenues may grow even more than what our consensus revenue estimates were. We’re not going to plan that way – we’re going to plan it conservatively.”

Kehoe and several other Republican elected leaders have also prioritized a state income tax reduction, which would eat a chunk of state revenue that could be used to fund government obligations, such as education and infrastructure.

Kehoe, a Republican, plans to make his budget proposal public next week, during his first State of the State Address as governor. His address is scheduled for Tuesday @ 3 p.m.

A livestream of the speech will be on the governor’s Facebook page.

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