Balancing the State’s Checkbook
It’s no secret to any Missourian, the coronavirus has had a devastating effect on our state. From the drastic drops in state revenue to the rising unemployment rate, this virus has hit our state hard. Unfortunately, the virus has also taken a financial toll on our state’s agencies and departments.
On Monday, June 1, the governor announced he would withhold more than $209 million from the state’s 2020 operating budget. While the Missouri Constitution requires lawmakers to create a balanced state operating budget for the coming year, it also gives the governor the ability to withhold funds from state departments if budget projections are not met due to declining revenue. During the month of April, the Department of Labor reported that our state experienced an unemployment rate of almost 10 percent. To make matters even worse, the Office of Administration announced that general revenue collections for April were down by more than 50 percent when compared to figures from April of 2019. Simply put, the state isn’t bringing in enough revenue to support the programs and services outlined in the Fiscal Year 2020 operating budget.
In order to balance the state’s bottom line, the governor withheld funds from several state departments. Regrettably, the Department of Elementary and Secondary Education (DESE) saw more than $130 million withheld from its budget for the remainder of the current fiscal year. As someone who has served with the governor in the Missouri Senate, I know how difficult of a decision this was for him to make. Our children are our future, but we are living in unprecedented times that require tough decisions. While this news is certainly tough to hear, I believe there is a silver lining. To help a majority of schools districts in the short term, our state will be able to utilize more than $185 million in federal CARES Act funds distributed as Title I Funding. I am hopeful this infusion of relief funds will provide our schools with the financial stability they need to weather the current storm.
In addition, the governor also announced he was restricting more than $40 million from the Department of Higher Education and Workforce Development’s 2020 operating budget. For a full list of the governor’s actions on the state’s current operating budget, please visit https://oa.mo.gov/budget-planning/budget-information/2020-budget-information.
As I said earlier, these are unprecedented times that require tough decisions. Like every family, our state government must balance its checkbook. When the money isn’t there, difficult decisions must be made. I applaud the governor for having the courage to make these difficult decisions. While these actions certainly weren’t easy, I believe they were necessary given the state of our economy. As our state continues to navigate the coronavirus pandemic, I pray that better days are ahead for all Missourians.
It is an honor to serve you in the Missouri Senate. Please do not hesitate to contact my office at (573) 751-3678 or by email at dave.schatz@senate.mo.gov if you have any questions or concerns — we are honored to serve you.