YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
Gov. Mike Parson signed off late last month on the state’s record-high $51.8 billion budget, which includes expected general revenue of $15.2 billion for the fiscal year that started July 1.
Infrastructure, workforce, education and public safety resources were among areas receiving funding approval for fiscal 2024. The major expenditures that received a green light include nearly $2.8 billion to expand Interstate 70 to three lanes across the state, as well as $300 million for a new psychiatric hospital in Kansas City and $248 million for broadband deployment in unserved and underserved communities, according to a news release from the governor’s office.
“With this budget, our administration has done the right thing – the conservative thing – to make strategic investments and maintain responsible spending,” Parson said in the release. “Missouri’s economy is strong. Our revenues are up, businesses are growing and investing, and we maintain a historic revenue surplus, but we must not spend just for the sake of spending.”
The state treasury held $5.9 billion in general revenue on May 31, roughly $1 billion more than the expected surplus when the fiscal year ended June 30, according to the Missouri Independent.
Parson issued 201 line-item vetoes, totaling $555.3 million worth of budget requests, including $28 million that would have been used for a facelift of a five-mile stretch of Interstate 44 in Springfield, $12 million for the city’s Cooper Tennis Complex and a multimillion-dollar project to improve LeCompte Road in northeast Springfield.
Officials say there was confusion in the budget on the LeCompte Road project cost.
“There was an error in the writing of the legislation. It was supposed to be for $3.4 million and translated as $34 million,” Springfield Area Chamber of Commerce President and CEO Matt Morrow said of the LeCompte Road budget proposal. “I suspect that had something to do with why it didn’t make it through.”
Vetoes for other local projects included a $10 million request by Victory Mission & Ministry for a housing project and $2 million for renovations at the Discovery Center of Springfield Inc.
Budget boost
Surviving budget items impacting Springfield include $8 million for repairs to the Jefferson Avenue Footbridge, $4 million for renovations at Hammons Field, $2.5 million for construction and repairs of a bridge at Fellows Lake and $2.5 million for Springfield Little Theatre building renovations, according to officials.
Morrow said Parson had spoken since before the start of the legislative session about several high priorities he sought in the 2024 fiscal budget, such as investing in expansion of broadband access and higher education funding. Over $70 million was invested to boost core funds in public four-year universities and community colleges, according to the budget.
Additionally, the budget has $29.4 million to increase the state’s baseline teacher salary to $38,000 from $34,000. The increase was first approved in the fiscal 2023 budget, but the state provided only 70% of funding and required a local match, according to past reporting. This year, the legislature invested an additional $7.6 million to eliminate the need for a local match.
“There are some local projects that got funding as well that we’re really grateful for and feel good about,” Morrow said, pointing out the Jefferson Avenue Footbridge and Hammons Field upgrade projects.
Springfield city leaders showed appreciation for the local project funding aid in a separate news release. The footbridge on Commercial Street, which had been closed since 2016 due to safety concerns, has previously provided passage to pedestrians in north Springfield over 13 highly trafficked rail lines. It was built in 1902, according to past Springfield Business Journal reporting.
“Restoring the footbridge and plaza will promote growth of a vibrant commercial district within the city and serve as a vital multimodal connector to benefit citizens of Springfield and its visitors to provide safer routes and access points,” Mayor Ken McClure said in the release.
For the fiscal 2023 state budget, Parson removed $5 million in proposed federal stimulus funds to be used toward the footbridge project, according to past reporting.
The capital renovations at Hammons Field are necessary for the home of the Double-A Springfield Cardinals to meet Major League Baseball-mandated facility requirements. While the city had committed $4 million toward the work, the state budget allocation will now cover the cost.
“The city is working closely with the Springfield Cardinals to improve the facilities, as well as identifying opportunities to improve the visitor experience and remain competitive,” McClure said.
The state budget also provided funding for a seventh judge with the 31st Judicial Circuit Court in Greene County, according to the Springfield Metropolitan Bar Association.
SMBA Executive Director Crista Hogan said via email the budget provides over $230,000 in funding for the new judgeship and a court reporter.
Veto reaction
While the I-44 improvement project was vetoed, $20 million was approved for an environmental study of the entirety of the interstate. Morrow said he was “disappointed” with the I-44 veto.
“At the same time, I believe I-44 is a priority for this governor and for the state,” Morrow said. “I know that he prioritizes infrastructure. We will want to work closely with the governor’s office to find out what needs to be done with that proposal to hopefully get it considered next year.”
Sen. Lincoln Hough, R-Springfield, who chairs the Senate Appropriations Committee, didn’t note any disappointments with this year’s budget.
“Missourians are talking about the roads they drive on, the jobs they have and the jobs they want, caring for their aging parents and education for their children,” he said via email. “This budget focuses on tackling these issues right now, primarily through one-time capital investment. The signed budget keeps our state on a solid path to weather and overcome whatever economic challenges are yet to come, and I think that is important.”
In the vetoes, Parson wrote that the fiscal 2024 budget passed by legislators was roughly $1.7 billion more than his recommended amount. He also noted a desire to maintain the state’s AAA bond rating and ensure a balanced budget among factors.
“I have vetoed this provision in an effort to help ensure the financial stability of Missouri beyond my administration and the current General Assembly,” Parson repeatedly said in his veto messages.
While Morrow said 201 vetoes was a high number, he wasn’t surprised by the total.
“There are always going to be factors that weigh in on the governor’s ability to sign or veto something,” he said. “There were more vetoes than normal, but it was also a larger budget than we’ve ever had before.”
Hough said there also were more line items added by the legislature than ever before upon passing the budget May 12 and sending it to Parson’s desk.
“The administration had an additional 45 days to monitor the economy and consider the cost of additional legislation that was passed by the General Assembly,” he said. “I believe people all across the state can find good things to support in the budget.”
Morrow said the chamber maintains communication with the governor’s office year-round and plans to soon visit with its staff and local legislators about some of the vetoes impacting local projects.
“We’ll probably learn more from the governor and his team in the weeks ahead about what really informed those decisions, and how we can work with them to help get some of these key priorities back on his desk in a form he will sign,” he said.
Digital Editor Geoff Pickle contributed.
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.
