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The Week of Jan. 12, 2026

This week, the governor gave his annual State of the State Address. Each year, the governor announces his legislative priorities and key items included in the upcoming fiscal year 2027 budget. The theme of this speech was centered on Missouri’s financial future, with the governor mainly focusing on eliminating the state income tax. This question would first go to a vote of the people in November and, if it passes, legislators next session would be tasked with developing a plan to phase out the income tax. 

I have several issues with this proposal meant to safeguard our state’s financial future. The way I see it, by eliminating the revenue from income tax, we will either have a shortfall in the budget the next fiscal year, or be forced to raise taxes in other areas to cover the deficit. For example, raising sales tax would disproportionately impact lower income Missourians because we all have to buy necessities like food and household items. With the cost of nearly everything rising, now is not the time to even discuss the possibility of raising taxes. As a member of the Senate Appropriations Committee, I will be carefully watching the budget process this year and ensuring Missourians are the priority and their needs are being met.     

Committees

Senator May’s Legislation:

On Tuesday, Jan. 20, I will present Senate Bill 944 to the Senate Transportation, Infrastructure and Public Safety Committee. This bill would increase the salary range for the attorney for the sheriff of St. Louis City from $3,000-$15,000 to $15,000-$75,000 per year.

Judiciary Committee:

The committee heard four bills this week. Senate Bill 904 would modify the definition of “industrial hemp” in state statute and establish the “Intoxicating Cannabinoid Control Act" to classify and regulate hemp-derived cannabinoid products as marijuana. Senate Bill 888 would permit a prosecuting or circuit attorney - or the office of the attorney general if the attorney general is acting as a special prosecuting attorney - to make a motion and present evidence that a child between the ages of 14 and 18 has committed an offense that would be considered a felony if committed by an adult, and that the case should be transferred from the juvenile court to a court of general jurisdiction.

Senate Bill 977 would establish the "No Shari'a Act,” prohibiting the application and enforceability of Shari'a law or any foreign law, legal code or system that denies the parties the fundamental liberties, rights and privileges guaranteed under the Constitution of the United States or the Constitution of Missouri. Senate Bill 1011 would also create the “No Shari'a Act” prohibiting the enforcement of a judgment, decree or arbitration decision if it relies on Shari'a or any foreign law that violates the constitutional rights of any party. This bill would also prevent certain international organizations or bodies, such as the World Health Organization, the United Nations and the World Economic Forum, from having jurisdiction or power in the state of Missouri.

Appropriations Committee:

This week, the Senate Appropriations Committee discussed an overview of the governor’s Fiscal Year 2027 budget recommendations. The governor’s proposal includes $600 million in cuts to the budget. It also includes an additional $86M for St. Louis tornado relief, bringing the total to $186M all together to assist citizens of the city of St. Louis. It is estimated the state will lose $510 million this fiscal year due to the repeal of the capital gains tax last year, with an estimated $330 million the following year .

Other News

Governor proposes cutting $600 million from state budget

On Jan. 13, the governor proposed more than $600 million in state budget cuts for the upcoming fiscal year as Missouri grapples with the elimination of the state’s capital gains tax, among other issues. The governor announced the cuts during his annual State of the State address before a joint legislative session.

The governor recommends a total state operating budget for the 2027 fiscal year of $53.76 billion, with another $746.4 million requested for one-time capital improvement projects. The governor’s plan would reduce total spending authority in the operating budget by $353.36 million over FY 2026 levels, while cutting funding for capital improvements by $246.85 million.

While the governor is constitutionally required to present his proposed budget at the start of the year, lawmakers are under no obligation to honor his requests and typically make numerous changes during the months-long process of crafting the various appropriations bills that make up the state budget. 

Although the governor could use his line-item budget veto to eliminate most spending lawmakers might include in the final budget that exceeds his desired amounts, spending for free public schools is constitutionally off limits to being vetoed. That is one area where the governor and lawmakers could come into disagreement. 

While the governor proposes keeping basic state funding for local public school districts frozen at FY 2026 levels, that amount is about $190 million under the minimum funding level for K-12 schools set by state law for FY 2027. 

While the governor’s plan again, in my opinion, underfunds public schools, he wants to increase funding for private school tuition vouchers. The current state budget provides $50 million in funding for vouchers, marking the first time Missouri authorized direct public funding for private schools. The governor’s budget calls for bumping that amount to $60 million. 

However, the state treasurer, whose office administers the voucher program, had requested doubling the current appropriation to $100 million and could ask lawmakers for the additional funding. A lawsuit challenging the constitutionality of sending public dollars to private schools is currently pending in Cole County Circuit Court.

The governor’s budget also cuts about $26 million from the Missouri Department of Higher Education and Workforce Development. Spending for individual public colleges and universities, however, would remain at current levels. As a result, students attending public colleges in Missouri could be hit with tuition hikes as their schools seek to cover rising costs without additional state funding.

Lawmakers face a hard constitutional deadline of May 8 to grant final passage to the appropriations bills. The new fiscal year begins July 1.

The governor sets massive sales tax hike as his top policy priority 

As his top policy goal for the 2026 legislative session, the governor proposed a ballot measure that would alter existing constitutional restrictions on the Legislature’s power to increase taxes to grant lawmakers authority to expand state sales taxes on all goods and services. The speaker of the House of Representative is sponsoring the legislation, House Joint Resolution 165.

House Joint Resolution 165 would nullify an existing ban on imposing sales taxes on services that Missouri voters added to the state constitution in 2016 with 57% support. The measure would also exempt any new sales taxes from other current constitutional provisions that restrict state revenue from growing faster than Missourians’ personal income and prohibit state lawmakers from imposing most tax hikes without voter approval.

While discussing the issue during his annual State of the State Address, the governor portrayed his tax hike as only applying to electronic commerce such as digital subscriptions, on-line advertising, electronic books and artificial intelligence platforms. He further claimed that he “will never support extending sales taxes on agriculture, health care or real estate.”

However, HJR 165 includes no language limiting new sales taxes to electronic commerce and provides no exemptions for agriculture, health care or anything else. To the contrary, HJR 165 would provide broad authorization “to impose taxes on transactions involving any goods and services.” An existing constitutional ban on taxing real estate transactions would be unaffected by HJR 165 and remain in place.

The governor wants to give the Legislature the authority to expand sales taxes in order to pay for an elimination of the state’s individual income tax. However, that tax currently provides two-thirds of the state General Revenue Fund – more than $9 billion a year. As a result, replacing it would require a massive increase in both the rate and scope of the sales tax, increasing prices on all goods and services. While the wealthiest taxpayers would receive a tax cut from the shift, the overwhelming majority of Missourians would experience a net tax increase.

If it clears both legislative chambers, HJR 165 automatically would go on the Nov. 3 statewide ballot. However, the governor could exercise his constitutional authority to move the vote to the Aug. 4 primary election.

Supreme Court upholds restrictions on gender transition care

On Jan. 13, a unanimous Missouri Supreme Court affirmed the constitutionality of a 2023 state law that prohibits providing gender transition medical care to children and bans the state’s Medicaid program from paying for gender transition surgeries for people of any age.

Several families of transgender children challenged the law, saying it unconstitutionally discriminates against them by denying necessary medical care based on gender. Specifically, the plaintiffs alleged the law violates the due process and equal protection clauses of the Missouri Constitution.

While the plaintiffs argued the law should be held to the highest level of constitutional scrutiny, the Supreme Court agreed with the trial judge that the Legislature merely had to demonstrate a rational basis for enacting the law, which in this case was based on the state’s authority to regulate medical practices and manage its Medicaid spending.

The law’s restrictions on gender-affirming care are set to expire in 2027 under a deal struck to avoid a Senate filibuster. Legislation to make the restrictions permanent fell short of final passage during the 2025 legislative session, but legislators are expected to try again this year. The case is E.N., et al., v. Gov. Mike Kehoe.

CONTACT INFORMATION

Thank you for your interest in the legislative process. I look forward to hearing from you on the issues that are important to you this legislative session. If there is anything my office can do for you, please do not hesitate to contact my office at 573-751-3599.