JEFFERSON CITY — Gov. Mike Parson’s administration is pushing back against claims that he vetoed hundreds of pet projects in the state budget at a time when state coffers held record-breaking surpluses.
In a letter to lawmakers obtained by the Post-Dispatch, the administration said the extra money in the state’s general checkbook is a “fund balance†that is needed to address upcoming costs.
The balance also accounts for tax cuts enacted by the Republican-controlled General Assembly, he said.
“In recent months, there have been misconceptions promoted in the media, one being that the State of Missouri enjoys a more than $8 billion surplus. That is simply not true, and we want to set the record straight to ensure financial security and responsibility moving forward,†the letter notes.
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The letter comes as the 2024 election season is ramping up. Parson is term-limited and won’t be on the ballot.
GOP candidates include Lt. Gov. Mike Kehoe, a close Parson ally, and Secretary of State Jay Ashcroft. Sen. Bill Eigel, R-Weldon Spring, also is a contender and has complained about some of the spending approved by lawmakers in May.
Eigel has said on X, formerly Twitter, that Parson “has abandoned fiscal conservative principles and should be ashamed.â€
Another conservative Republican, Sen. Mary Elizabeth Coleman, R-Arnold, also has raised questions about the money left in the budget, suggesting lawmakers enact additional tax cuts.
“Missouri’s budget surplus belongs to you, not the bureaucracy. It’s time this money is returned to you,†she tweeted in July.
According to the governor, who has spent the past week promoting a plan to spend $2.8 billion to add lanes to traffic-choked Interstate 70, the state began the fiscal year July 1 with $8 billion in the bank.
But, the letter said, “A ‘surplus’ suggests there are no plans for these funds, but in reality, over 66% of Missouri’s fund balance has already been obligated for fiscal year 2024.â€
After expenses, tax collections and the spending of federal money, the letter said the state projects it will have a fund balance of $3.1 billion.
Even that amount, however, could be reduced through a number of initiatives approved by the Legislature, including bond payments for the I-70 project, rate increases for people who care for the disabled, increases for higher education and grants for pre-kindergarten programs.
What’s more, Parson said tax breaks approved by lawmakers also will chip away at the totals.
A reduction in the state income tax rate for individuals, for example, will cost $589 million in the coming year.
“These investments are worthwhile causes that enjoyed broad support from both the General Assembly and governor’s office… and that’s why the $3 billion fund balance at the end of FY24 must be preserved for these obligations and future needs,†the letter says.
“While times are good and we have a healthy fund balance, that may not always be the case in the future,†the letter adds.