Kehoe: $30M in state funding for convention center could still be released

Missouri Gov. Mike Kehoe said Tuesday he’s a “big fan” of Springfield leaders’ efforts to develop a $175 million regional convention and event center in the center of the city.

Kehoe said if Springfield leaders, including Mayor Jeff Schrag, can convince city residents to back a convention center, the governor may still be able to release $30 million in state funding approved by lawmakers this year. On Nov. 4, 52% of Springfield voters rejected an additional 3% lodging tax to help fund such a center. The state funding for the center was withheld by Kehoe as part of roughly $211 million in budget restrictions he enacted June 30. He previously told Springfield Business Journal he was watching the November vote on convention center funding, as the state funding requires a local match.

Kehoe spoke on the convention center as part of a live interview yesterday with Springfield Business Journal Executive Editor Christine Temple, held as part of SBJ’s 12 People You Need to Know series. The sold-out event was moved from The Backlot, Alamo Drafthouse Springfield’s restaurant and bar, to Alamo’s largest theater.

“Obviously we need each other on this project, and so it’s kind of the chicken and the egg,” Kehoe said. “But I think if Springfield can get their question kind of repackaged and looked at, we’ll be very interested in trying to continue to help with that.”

Kehoe added, “We said we can withhold this until we see if they can get that done.”

Kehoe has until June to make the decision, he said.

Kehoe also shared his views on the fiscal realities Missouri faces as windfalls of COVID-era federal funding are ending.

Laws including the 2020 Coronavirus Aid, Relief and Economic Security Act and the 2021 American Rescue Plan injected billions into state and local budgets – but only for a limited time. Back in August, Kehoe’s budget division in the Office of Administration projected a $1 billion shortfall in general revenue beginning with the upcoming fiscal year.

Kehoe noted he gets a lot of questions about his support for cutting taxes amid the prospects of a shortfall.

“I say you can actually manage both,” Kehoe said. “The legislature passed the state income tax relief on capital gains. It was a huge issue for our family farms across the state. … But as a conservative, I believe putting money in your pocket is always better than putting money in my pocket.”

Kehoe added, “Yes, we’re short some money because of the federal flow-through, but Missouri knows how to operate in those times. We’ve got to kind of get back to where we were in 2019, 2020, when we were providing services. Projects were happening in Springfield, transportation was being funded, education was being funded, and we got along in a smaller budget. We just have to get back to those days. It will be some tough decisions, but we know how to make it.”

Kehoe’s interview included light-hearted moments. Asked to share something about himself that most people don’t know, the governor revealed he takes notes on a folded-up paper plate he carries in his jacket pocket.

“So the good news is, once you get all these notes scratched off, you can, you know, eat lunch on this darn thing,” Kehoe said.

The plates are decorated with a sticker featuring Missouri’s official government seal, a gift from Attorney General Catherine Hanaway and her children, he said.

SBJ’s next People You Need to Know interview is scheduled for Jan. 20 featuring Hal Higdon, chancellor of the Ozarks Technical Community College system, according to an announcement at yesterday’s event.