Kehoe signals support of Springfield convention center

Following years of attending the Springfield Area Chamber of Commerce’s annual State of the State as a spectator, Gov. Mike Kehoe took center stage July 28, serving as the event’s keynote speaker for the first time since taking office in January.

Kehoe recapped some of his and the General Assembly’s achievements during the first half of the year, covering areas such as the state budget, public safety, economic development and education. The gathering drew an attendance of 608 to Great Southern Bank Arena on Missouri State University’s campus, according to chamber officials. 

Kehoe said the nearly $51 billion budget he signed in late June had around 450 items and nearly $775 million in additional spending beyond his original budget recommendation in January.  

“We’ve now finished signing legislation passed by the General Assembly and enacted a balanced, conservative budget that reflects the values and priorities of our state,” he said. “We’ve done it with one goal in mind: To build a strong, safer and more prosperous Missouri.” 

However, according to the governor’s office, the budget also had 208 vetoes totaling nearly $300 million in general revenue, and 32 expenditure restrictions, totaling $211 million in general revenue. One of those expenditure restrictions is a $30 million earmark to go toward a future convention center in Springfield. The restricted funds can be activated by Kehoe at his discretion and must be matched by the city, according to past Springfield Business Journal reporting. 

In a recent study from Hunden Strategic Partners Inc., the Chicago-based firm recommended Springfield build a $175 million event center as well as a 400-room, full-service, connected hotel at an estimated cost of $209 million. Officials believe the proposed development has the potential to bring in $1.3 billion in local spending and more than $68.7 million in tax revenue over a 30-year period. No location for the center is determined, but the Hunden report says it should “be located near downtown amenities.”  

The main mechanism proposed to help cover construction and operational costs is a 3% addition to the city’s 5% lodging tax, which is collected from guests to the city’s hotels, motels and short-term rentals. Springfield City Council voted at its July 28 meeting to add the additional lodging tax issue to the Nov. 4 ballot. (See related story on page 3)

“They want a government that lives within its means, invests wisely and clears the way for you to thrive,” Kehoe said of what Missourians voted for and continue to tell his office. “And we know that securing Missouri’s future won’t be done through rhetoric. It will be built by action. This year we’ve made great progress, safer streets, stronger families and a growing workforce.” 

Speaking with members of the media following the chamber event, Kehoe said the Springfield project is among several budget items his office had to withhold temporarily while waiting to see how the state of the economy, revenue projections and federal government actions proceeded this fiscal year. Sen. Lincoln Hough, R-Springfield, chair of the Senate Appropriations Committee, added the earmark for the convention center to the budget proposal.  

“I’ve been in constant communication with [Springfield] Mayor [Jeff] Schrag about how important that project is,” Kehoe said, adding the convention center has multiple pieces to the puzzle. “I’m a big fan of that project. I know Sen. Hough very much is a big fan and fought very hard as well as the rest of the Springfield delegation. So, as they move certain pieces of that project forward, we’ll try to work with them on how that ends up happening.”

He added, “The community, in my opinion, even outside of the passion behind the elected officials, seem to be very supportive of this.”

Springfield’s Citizen Advisory Board unanimously voted July 30 to recommend the use of $30 million in matching funding from the city for the convention and event center.

Tim Rosenbury, the city’s director of quality of place initiatives, told members of the board that the entire $60 million – $30 million in restricted funding in Gov. Kehoe’s budget and the local match – must be spent by a June 2026 deadline.

In defense
During the event, Kehoe briefly touched on his repeal of the mandatory paid sick leave law approved last year by voters. Earlier in July, Kehoe signed House Bill 567, which modifies provisions related to paid sick leave and employee compensation or Proposition A, passed in November with roughly 57.6% of the vote. The bill repeals the provisions establishing paid sick time, which required employers to give workers at least one hour of sick leave for every 30 hours worked. Those who started accruing paid sick leave on May 1 under the law will lose it Aug. 28, when the legislation goes into effect.

Additionally, the legislation ends automatic Consumer Price Index adjustments to the state’s hourly minimum wage. It is currently at $13.75 per hour and is set to increase to $15 per hour on Jan. 1, 2026.

Kehoe said the voter-approved provisions were “unfair compensation mandates that would’ve hurt small businesses and threaten local jobs. Missouri will not punish the very employers who fuel our economy.”

Support for the governor’s decision is far from unanimous. 

Prior to the event, protestors linked to St. Louis-based organization Missouri Jobs with Justice gathered outside the arena in opposition to Kehoe’s action against Proposition A. Additionally, Richard von Glahn, policy director for Missouri Jobs with Justice, which helped lead the campaign for the paid sick leave law, previously told SBJ the organization filed a proposed constitutional amendment to the Missouri secretary of state’s office for consideration on the 2026 ballot.

“Businesses should set what the benefits are for their employees,” Kehoe said to media members after the event. “If an employee doesn’t feel like they’re getting the right benefit, there’s a business down the street that might have a better package for them, and that’s how the process should work.”

He said the business community will need to “be on their toes to make sure they inform Missourians” about the potential cost of mandatory paid sick leave – both for companies and consumers. 

Jessica Harmison-Olson, co-owner of Maxon’s Fine Jewelry, was among business leaders in attendance at the chamber event. She supported Kehoe’s repeal of the paid sick leave law, adding it’s an action government shouldn’t mandate. 

“Not only business owners, but managers and supervisors understood some of the challenges that created in business,” Harmison-Olson said. “There will probably be some opposition to it if it comes back on the ballot, but I think people are going to be more aware and more educated about it.”

Harmison-Olson said her company is “generous and flexible” with its paid sick leave policy, adding that most employees will tend to leave a company that isn’t already offering them competitive pay and sick time off. 

“I understand that there’s competition in the area, so you have to take care of your people, and in turn, they’ll take care of you,” she said. “And if they don’t feel taken care of, they will go elsewhere.”

Legislative activity
In the area of economic development, Kehoe said with the passage of House Bill 594, legislators enacted the largest tax cut in Missouri history. It allows individuals to deduct all capital gains taxes and corporate entities to deduct all capital gains when the top rate of corporate income tax is equal to or less than 4.5%.

“This keeps more money in the pockets of hardworking families and small businesses while protecting vital services,” he said. “I’ve directed our Missouri Department of Revenue to work with their team on modeling a responsible path to phase out Missouri’s personal property and our personal income tax over time, so Missourians can keep even more of what they earn.”

Kehoe said another important economic development component is a strong early childhood system. He said the General Assembly supported his budget recommendation “for child care funding for low-income families as well as grants to support partnerships between employers and child care providers.”

“Starting next fiscal year, providers who partner with the state will receive upfront monthly payments, ending the instability caused by delayed reimbursements, which is huge to these providers,” he said, adding the state has launched a full regulatory review through the Office of Childhood “to modernize outdated and duplicative child care rules.”

The State of the State event marked the eighth year for the chamber gathering, which former Gov. Mike Parson attended since taking office in 2018. Kehoe served as lieutenant governor under Parson before being elected to the top state leadership position in November.