Tuesday afternoon, Governor Mike Kehoe delivered the first State of the State of his administration. His address had a strong focus on public safety, economic development, education, childcare, and support for Missouri's agricultural communities and veterans. In addition to the policy proposals outlined in the speech, the Governor unveiled a high-level overview of his budget recommendations. Additional details on the budget proposals will be released in the coming weeks. 

This report outlines the major priorities addressed in the Governor's speech as well as many of the accompanying budget recommendations. 

Public Safety:

Governor Kehoe prioritized law enforcement and public safety during his gubernatorial campaign, and this was reflected in both the early actions of his administration and the State of the State address. The public safety proposals outlined in the speech include: 

• Law Enforcement Support: Governor Kehoe unveiled the following funding recommendations. 
  • Increased funding for the Missouri Blue Scholarship Program ($1 million)
  • $10 million in new funding for the Blue Shield Program for local communities
  • $2.5 million to support the sheriff’s retirement system.
  • The new crime lab in Cape Girardeau ($12.8 million).
  • Support for one deputy sheriff in each of the nine Highway Patrol Troops ($1,250,000) to pursue felony warrants.
• Fentanyl Crisis: To address rising deaths from fentanyl, Governor Kehoe emphasized his support for increased penalties for fentanyl trafficking and funding $4 million for fentanyl testing in school wastewater systems.

Economic Development and Taxation:

Governor Kehoe laid out his vision for growing jobs and spurring economic development in Missouri. This included reducing regulations, cutting taxes, and supporting the educational infrastructure needed for the workforce, including childcare. 

"A strong early childhood system is necessary for a prosperous economy. We know that when investing in our children, we are not only preparing them to be ready for school and to be successful later in life; we are also helping the workforce today," he said. 

• Business-Friendly Environment: The Governor said he will focus on reducing taxes, cutting regulations, and infrastructure investments to make Missouri attractive to businesses and job creators.
• Eliminating Income Tax: Governor Kehoe directed the Department of Revenue to develop a "sustainable and comprehensive" plan for the elimination of the individual income tax. While work is in progress to find a "responsible plan to eliminate the income tax," Kehoe called on the Legislature to pass legislation with incremental reductions based on revenue growth. 
• Child Care: Kehoe highlighted childcare and early childhood education as a workforce development tool. He addressed a number of initiatives, including: 
  • Executive Order 25-15 directs a complete rewrite of the regulations within the Office of Childhood.
  • $10 million in grants to support partnerships between employers, communities, and childcare providers to develop more slots.
  • Timely payments to childcare providers, including paying at the beginning of the month and paying on enrollment.
• Career and Technical Education: "We get a lot right when it comes to career and technical education, but gaps remain, and we can do more to increase technical education to skill up our current and future workforce." 
  • $15 million in new funding for equipment and operational needs of career and technical centers.
  • $5 million increase in annual support of technical centers.
  • Increased funding to expand career counseling to more high schools. ($1 million)
  • Executive Order 25-16 establishes a task force focused on coordinating workforce development.

Education:

The Governor made several significant policy proposals related to education in the State of the State address. 

"I want to be clear that I am a proud supporter of education in all its forms—public schools, private schools, charter schools—as long Missouri’s children are getting a quality education. Throwing more money at the problem is not the solution. We have invested over $4 billion in K-12 education, and we still aren’t seeing acceptable results across the state," he said. 

He supported school choice expansion through the passage of voluntary open enrollment legislation and recommended $50 million in state general revenue for the state's ESA program, which is currently funded by tax credits. 

His budget does not include full funding for the K-12 Foundation Formula. He said the current formula is outdated and called for a Task Force to develop recommendations for revamping the model. 

• Foundation Formula: $200 million increase in funding for the Foundation Formula, though this is $300 million short of full funding of the formula. 
• School Transportation: Over $370 million to fully fund the state's commitment to school transportation.
• Teacher Salaries: $33 million to fund teacher salaries to ensure all teachers are paid at least the statutory minimum.
• Small Schools Grants: $30 million for Small School Grants to support small rural school districts.
• School Funding Modernization Task Force: Executive Order 25-14 establishes this task force to recommend changes to the Foundation Formula.

Healthcare and Mental Health: 

"From increasing funding for behavioral health facilities and crisis hotlines to providing critical services for children with disabilities and complex medical needs, these investments reflect a comprehensive approach to improving the health and resilience of all Missourians," Governor Kehoe said. 

• Treatment and Support for Developmental Disabilities: $149M to provide MO HealthNet services for 3,700 new individuals.
• Behavioral Health Residential and In-Home Support Needs: $71.6M providing MO HealthNet for 2,102 adults and 6,734 children.
• Alternatives to Abortion: $4M in funding, more than a 50% increase in funding.
• 988 Suicide and Crisis Lifeline: $3.9M for continued operations of the suicide crisis hotline.
• Behavioral Health Crisis Centers: $2M to support ongoing operations for 5 new behavioral health crisis centers.

Three Opportunities for Online Testimony Next Week 

There are several House hearings next week that may be of interest.  Even if you can’t travel to Jefferson City, you can submit online testimony as an individual to make your voice heard.  

• On Monday, the House Insurance Committee will hear NASW MO priority legislation to streamline the prior authorization process.  This would help reduce burdens on providers and remove needless care delays for patients.  You can submit online testimony here.  
  • HB 618 - Stinnett Prior Authorization of Health Care Services

• On Monday, the House Emerging Issues will hear legislation targeting gender-affirming care, gender designations on drivers’ licenses, and trans youth’s access to sports.  You can submit online testimony here.  
  • HB 35 - Billington Gender Transition Procedures
  • HB 1016 - Seitz Gender Transition Procedures
  • HB 1038 - Gragg Gender Transition Procedures
  • HB 1081 - Baker Gender Transition Procedures
  • HB 36 - Billington Participation in Athletics Competitions
  • HB 113 - Seitz Participation in Athletics Competitions
  • HB 624 - Cook Participation in Athletics Competitions
  • HB 135 - Phelps Gender Designations of Driver's Licenses
• On Tuesday, the House Health and Mental Health Committee will hear NASW MO priority legislation to codify audio-only telehealth in the statute.  This is key to protecting access for individuals without broadband.  You can submit written testimony here.  
  • HB 825 - Stinnett Telehealth Services
  • HB 822 - Mansur Telehealth Services