JEFFERSON CITY, Mo. (KFVS) – Governor Mike Kehoe signed Missouri’s Fiscal Year 2027 operating and capital improvement budget bills Tuesday, approving a plan that totals $50.7 billion.

In a news release, Kehoe said the budget is balanced and focuses on what he called “smart and necessary investments” while protecting taxpayer dollars.

What’s in the FY27 budget?

The governor’s office said the FY27 operating budget totals about $49.8 billion after vetoes, including $15.7 billion in general revenue.

State leaders highlighted several funding priorities:

Public safety

• $2 billion for law enforcement and community safety initiatives
• Includes funding for Missouri Blue Shield grants, Operation Relentless Pursuit and law enforcement academy scholarships, among other items

Economic development

• $338 million for business growth and innovation
• Includes support for the Missouri Technology Corporation, a statewide apprenticeship program, Missouri One Start and a public-private-employee shared funding child care model

Agriculture

• $59.4 million for agriculture and rural communities
• Includes investments tied to infrastructure and programs, including low-volume roads and Missouri FFA

Education

• $9.8 billion for K-12 and higher education
• Includes funding for the K-12 education foundation formula and transportation, the Empowerment Scholarship Account Program, career and technical centers and higher education

Health care

• $24.8 billion to support Missourians with physical, developmental and behavioral health needs
• Includes funding for self-directed supports, outpatient competency restoration and Medicaid reform

Concern over one-time funding, FY28 gap

The governor’s office said lawmakers stayed largely within his recommended spending levels, but did so by using $179.1 million in one-time cash to cover ongoing costs.

The state is also facing a projected shortfall of more than $500 million in FY28, according to the release.

“State government doesn’t have a revenue problem, we have a spending problem, and continuing to spend faster than we grow our economy is not a sustainable path forward,” Kehoe said in the news release.

Vetoes and spending restrictions

To meet the constitutional requirement of a balanced budget, Kehoe issued:

• 65 vetoes totaling more than $30 million in general revenue
• 78 expenditure restrictions totaling $441.3 million, including $337.2 million in general revenue

The governor’s office said the vetoes and restrictions were largely tied to new projects, improper funding sources for new appropriations or an over-appropriation of various funds.

What’s next

Budget discussions are expected to continue as state officials look ahead to FY28 and the projected gap.

The Kansas City Chiefs selected linebacker Nick Bolton in the second round, 58th overall, of the 2021 NFL Draft. The University of Missouri Tigers star is a two-time Super Bowl champion and can now add Hall of Famer to his resume after a special reveal from head coach Andy Reid after a recent team practice.

“You guys know I’m a Missouri Tiger at heart; I had a chance to coach there, for you that didn’t know, before I got in the NFL. We got a couple of Missouri Tigers here, but we got one that’s real, real famous right now. Not only for his play here with the Chiefs, but also what he did at the University of Missouri,” said Reid. “He did great things there. We know him as kind of a team guy. He’s Nick Bolton, right? We know him as a team guy, the ultimate team guy, but today you’re going to get an individual award, bud. Today you’re going into the University of Missouri Athletic Hall of Fame.”

During his college football career at Missouri, Bolton was named First-Team All-SEC in 2019 and 2020 and Second-Team All-American in 2020.

Bolton had another impressive season in 2025, leading the Chiefs with 154 total tackles, along with a sack and an interception. He was selected as an alternate for the 2026 Pro Bowl Games.

SPRINGFIELD, Mo. — Despite conflict between the U.S. and Iran, gas prices in Missouri have been falling since last month, and even last week.

According to GasBuddy.com, average gas prices in Missouri have gone down 53.9 cents a gallon since last month and 9.9 cents per gallon since last week. This correlates with national average gas prices, which have been down 55.6 cents per gallon since last month and 6.9 cents per gallon last week.

Head of Petroleum analysis at GasBuddy, Patrick De Haan, says, “Fresh attacks were traded between the U.S. and Iran before both sides agreed to halt hostilities just in time Sunday, preventing what could have been a significant spike in oil prices.”

Patrick says that even though the market is unpredictable at the moment, “GasBuddy anticipates the national average will continue drifting lower this week.”