Missouri
Missouri supplemental budget shows shortfall in Medicaid, education funding • Missouri Independent
Keeping Missouri state government operating through June 30 will cost $2.1 billion more than lawmakers budgeted last year thanks to lowballed spending estimates, sluggish lottery sales and new programs in education and other areas.
The election-year budget plan approved last year totaled $51.6 billion after Gov. Mike Parson was finished with vetoes that fell heavily on earmarked items inserted by legislators. While Parson was paring back on pork, lawmakers slashed spending in the Medicaid program to keep the topline total down.
New Gov. Mike Kehoe on Tuesday delivered his $53.7 billion budget for the coming fiscal year. It came with the supplemental spending request that took up most of a six-hour hearing Wednesday in the House Budget Committee.
Gov. Mike Kehoe dips deeply into surplus as Missouri budget grows to nearly $54 billion
The Medicaid program spent $12.6 billion on medical services in fiscal 2024 and billions more on mental health and other services. Lawmakers appropriated $13.6 billion for medical services the current year and Kehoe is asking for $15.8 billion in the year starting July 1.
The biggest item in the supplemental spending request is $942 million to cover a Medicaid shortfall. More realistic budgeting last year would have reduced that amount, MO HealthNet Director Todd Richardson told The Independent.
“They took about a 25% core cut last year,” he said.
The supplemental request is larger than last year, which was $580 million, but smaller than each of the three previous years, when federal pandemic aid and state employee pay raises inflated the totals.
Along with the new governor, the budget committee has a new chairman, state Rep. Dirk Deaton, a Republican from Noel. It also has a new vice-chairman, GOP state Rep. Bishop Davidson of Republic, who is also new to the committee.
Under state budget rules, lawmakers cannot add items to the supplemental budget but they can reduce or eliminate them. Deaton said it is too early to say whether the proposal will see major changes.
“We’re still doing the due diligence, and we certainly need to take a look at it and make sure there’s the justification for it, and run everything through the traps,” Deaton said.
Davidson said he’s working to learn the jargon and the process for setting spending levels.
“We have a really awesome staff that are not only good analysts and good researchers, but they’re good teachers as well,” he said.
Major items in the supplemental request include:
- $142.4 million for the state foundation formula for public schools. Of that amount, $47.4 million is due to increases mandated by a major education bill passed last year. The remaining $95 million is general revenue being used to replace a shortfall in lottery proceeds.
- $129.8 million for the Department of Mental Health to eliminate waiting lists for developmental disability and behavioral health services.
- $110 million for the mental health agency to pay community providers of services for people with developmental disabilities.
- $95 million to cover the expected cost of home and community-based services in the Medicaid program.
- $20.7 million to cover a higher rate for health care provided to people in the custody of the Department of Corrections. The department extended the current health care contract with Centurion Health for four years, paying $21.65 per day for each person in custody.
In the early part of the hearing, State Budget Director Dan Haug and department leaders in attendance were often peppered with detailed questions about the budget lines. Later, as the hearing continued through lunch time, the time spent on each shortened.
And when Haug got to the Medicaid request, he even drew laughter.
“This is a page I probably should skip,” Haug joked when he reached the request. “It is only about a billion dollars.”
He received few questions about the request.
Lawmakers wanted to know why the lottery isn’t producing as much as promised last year. The budget included $430 million from the lottery for education programs, a 5% increase over the previous year.
Instead, net proceeds available for education are down more than 15% during the first six months of the year.
Haug attributed part of the decline to a dearth of major jackpots, which draw ticket purchases from people who rarely play. State Rep. Louis Riggs, a Hannibal Republican, asked if video games that pay out cash prizes, which have infiltrated every corner of the state at convenience stores and other locations, were to blame.
“How much is that attributable to folks sitting there gorked out all day on those machines, which I don’t think we’re getting any tax revenue from, instead of playing the lottery?” Riggs asked.
Haug said there were no studies, so the answer is unknown.
“That could be a possibility but it is hard for us to quantify it,” he said.
Sometimes the questions focused on issues that weren’t addressed in the supplemental budget but are causing pain at home. The Department of Elementary and Secondary Education has struggled to implement a new payment system for child care vendors and in August promised to clear a staggering backlog by the start of November.
On Wednesday, Kari Monsees, deputy commissioner of education, said 70% of the backlog has been cleared and the target for clearing it is the end of February.
That wasn’t an answer that pleased the committee.
“When you have providers saying they are taking money out of their child’s savings accounts to keep their business open so we have child care, I have a problem with that,” said state Rep. Stephanie Hein, a Springfield Democrat.
The education agency took over the child care program when Parson reorganized state government and created the Office of the Child in the department. The department changed its software vendor in December of 2023, and both providers and families enrolling in the program began noticing issues tracking and receiving payment. Some child care centers closed and others turned away families using the subsidy program during months of missed payments.
There are backlogs of payments from before the changeover that must be met, said state Rep. Don Mayhew, a Crocker Republican.
The plan for catching up payments only covers those made through the new software, he noted.
“It didn’t include the providers from the previous year who are stuck in this purgatory of old system versus new system,” Mayhew said.
When the committee finished with the supplemental plan, Haug gave a quick overview of the budget proposal for the coming year.
Kehoe is proposing a $200 million increase in the foundation formula, which covers the extra costs imposed by last year’s legislation, but balked at adding another $300 million that the formula shows would meet the full obligation to schools.
A key factor, the state adequacy target — a measure of how much schools that meet state standard spend — increased, driving the $300 million request.
“Just to be clear, we are not cutting funding to K through 12 education,” Haug said. “We are increasing funding by $200 million in K through 12 education, the largest increase they have gotten under this current formula, the largest increase we could find back to the 90s.”
Haug also discussed how Kehoe would keep his promise to eliminate the state income tax, which provides about 70% of state general revenue.
“I don’t think anyone here wants to cut 70% of state government,” Haug said. “There would have to be some revenue replacement there.”
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The Missouri Lottery offers several draw games for those aiming to win big.
Here’s a look at May 22, 2026, results for each game:
Winning Mega Millions numbers from May 22 drawing
03-22-34-54-61, Mega Ball: 08
Check Mega Millions payouts and previous drawings here.
Winning Pick 3 numbers from May 22 drawing
Midday: 5-5-2
Midday Wild: 8
Evening: 7-7-0
Evening Wild: 8
Check Pick 3 payouts and previous drawings here.
Winning Pick 4 numbers from May 22 drawing
Midday: 6-4-7-5
Midday Wild: 0
Evening: 4-5-6-2
Evening Wild: 6
Check Pick 4 payouts and previous drawings here.
Winning Cash Pop numbers from May 22 drawing
Early Bird: 12
Morning: 09
Matinee: 08
Prime Time: 01
Night Owl: 10
Check Cash Pop payouts and previous drawings here.
Winning Show Me Cash numbers from May 22 drawing
07-12-22-38-39
Check Show Me Cash payouts and previous drawings here.
Feeling lucky? Explore the latest lottery news & results
Are you a winner? Here’s how to claim your lottery prize
All Missouri Lottery retailers can redeem prizes up to $600. For prizes over $600, winners have the option to submit their claim by mail or in person at one of Missouri Lottery’s regional offices, by appointment only.
To claim by mail, complete a Missouri Lottery winner claim form, sign your winning ticket, and include a copy of your government-issued photo ID along with a completed IRS Form W-9. Ensure your name, address, telephone number and signature are on the back of your ticket. Claims should be mailed to:
Ticket Redemption
Missouri Lottery
P.O. Box 7777
Jefferson City, MO 65102-7777
For in-person claims, visit the Missouri Lottery Headquarters in Jefferson City or one of the regional offices in Kansas City, Springfield or St. Louis. Be sure to call ahead to verify hours and check if an appointment is required.
For additional instructions or to download the claim form, visit the Missouri Lottery prize claim page.
When are the Missouri Lottery drawings held?
- Powerball: 9:59 p.m. Monday, Wednesday and Saturday.
- Mega Millions: 10 p.m. Tuesday and Friday.
- Pick 3: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
- Pick 4: 12:45 p.m. (Midday) and 8:59 p.m. (Evening) daily.
- Cash4Life: 8 p.m. daily.
- Cash Pop: 8 a.m. (Early Bird), 11 a.m. (Late Morning), 3 p.m. (Matinee), 7 p.m. (Prime Time) and 11 p.m. (Night Owl) daily.
- Show Me Cash: 8:59 p.m. daily.
- Lotto: 8:59 p.m. Wednesday and Saturday.
- Powerball Double Play: 9:59 p.m. Monday, Wednesday and Saturday.
This results page was generated automatically using information from TinBu and a template written and reviewed by a Missouri editor. You can send feedback using this form.
JEFFERSON CITY, Mo. (KY3) -Gov. Mike Kehoe signed proclamations Friday placing four constitutional amendments on the August primary election ballot, moving up several questions that will shape Missouri’s tax structure and voting process.
The primary election will take place on August 4.
“With several significant issues set to appear before Missouri voters this year, it is important that we both prepare for the outcome of each proposal and allow each issue to receive the careful public consideration it deserves,” Kehoe said.
Two of the amendments are facing strong opposition: Amendments 4 and 5.
Past election data show more Republicans are likely to vote in the August primary election. Likely voters polled by Saint Louis University showed support for Amendments 4 and 5, with more Republicans in favor than Democrats.
All other ballot measures, if certified, will be on the November general election ballot.
Amendment 1: Natural resources sales tax
Amendment 1 continues for an existing sales tax one-tenth of one percent sales tax that supports soil and water conservation, state parks, and historic sites for 10 more years.
The ballot will read: “Shall Missouri continue for 10 years the one-tenth of one percent sales/use tax that is used for soil and water conservation and for state parks and historic sites, and resubmit this tax to the voters for approval in 10 years?
The measure allows continued collection of the existing sales and use tax, which generates revenue of approximately $140 million annually.”
Amendment 2: County assessors
Amendment 2 requires all charter counties, including Jackson County, to elect a county assessor and requires assessors to comply with training requirements established by state law.
The ballot will read: “Shall the Missouri Constitution be amended to:
- require all charter counties, including Jackson County, to provide for the election of a county assessor; and
- require assessors in all charter counties to comply with any training requirements established by general law?
State and local governmental entities estimate no costs or savings.”
Amendment 4: Constitutional amendments
Amendment 4 modifies current requirements that a simple statewide majority of voters may approve initiative petitions to amend the constitution. It requires a majority of voters in each congressional district to approve initiative petitions to amend the constitution, and makes available to each voter the full text of initiative petitions with their ballot.
The ballot will read: “Shall the Missouri Constitution be amended to:
- Modify current requirements that a statewide majority of voters may approve initiative petitions to amend the constitution;
- Require a majority of voters in each congressional district to approve initiative petitions to amend the constitution; and
- Make available to each voter the full text of initiative petitions with their ballot?
The Department of Corrections estimates increased annual costs of up to $21,817. The Office of State Public Defender estimates an unknown fiscal impact. Other state governmental entities estimate no costs or savings. Local governmental entities estimate no costs or savings. ”Missouri Realtors formed the Protect Majority Rule Campaign Missouri to oppose Amendments 4 and 5.
“Amendment 4 would effectively kill our initiative petition process that our citizens have to make laws directly,” said spokesperson Scott Charton.
Moberly Republican Rep. Ed Lewis, who sponsored Amendment 4, said the change is needed.
“It’s not fair that only a few sections of the state, essentially around the urban core, are essentially dictating what the constitution is going to contain,” Lewis said.
A separate group, Protect MO Voters, supports Amendment 4.
“Missourians deserve a Constitution that is protected, not hijacked by out-of-state special interests and paid signature-gathering operations. Amendment 4 ensures that changes to our founding document have real statewide support,” the group said in a statement.
Amendment 5: Taxes
Amendment 5 requires the phase-out and elimination of the individual income tax based on revenue growth and requires the reduction of property taxes and other local taxes to offset any local sales tax revenue increases, while preserving local funding for public schools.
The ballot will read: “Shall the Missouri Constitution be amended to:
- Phase-out the individual income tax based on revenue growth;
- Reduce personal property and other local taxes when local revenues increase;
- Modify the sales and use tax to eliminate income tax and reduce local taxes; and
- Protect local funding for public schools and other purposes?
The proposal has no direct impact on state or local tax revenue. If passed, implementing legislation will have an unknown impact to state and local tax revenue. If implemented, state government entities expect a reduction of $57,000 annually in income tax check-off donations and implementation costs of at least $100,000.”
Amendment 5 is Kehoe’s tax plan. If voters approve the plan, lawmakers can raise sales tax or introduce new ones to replace the state income tax.
“The current system that we have now is 100 years old and we need to modernize it, we need to update it to reflect the current times that we live in,” said State Rep. Jon Patterson, speaker of the Missouri House.
New taxes could be placed on services, including real estate transactions.
“We call it the Everything Tax,” Charton said. “It would allow lawmakers to just ignore existing constitutional protections and raise new sales taxes and add new sales taxes on services.”
Kehoe said placing the income tax measure on the August ballot gives lawmakers additional time to prepare for implementation.
“Modernizing Missouri’s outdated tax code, specifically, will be a momentous task for the Missouri General Assembly,” Kehoe said.
A poll released this month from Saint Louis University and YouGov shows 52% of likely Missouri voters support a taxing system that relies on sales taxes instead of income taxes. However, when asked about taxing specific items, the taxes were a lot less popular. The most agreeable possible new tax is a sales tax on streaming services, like Netflix or Hulu.
To report a correction or typo, please email digitalnews@ky3.com. Please include the article info in the subject line of the email.
Copyright 2026 KY3. All rights reserved.
Missouri
Colombian national sentenced to 25 years for raping, impregnating 12-year-old girl in Missouri
Illegal immigrant accused of groping high school girls in Virginia sparks outrage
Emily Compagno, Kayleigh McEnany, Harris Faulkner, and Steve Doocy discuss the arrest of Israel Christopher Flores-Ortiz (19), an illegal immigrant from El Salvador, accused of groping 12 female high school classmates in Fairfax County, Virginia. The Outnumbered panel slams the school district for allegedly covering up the assaults for weeks, violating state law. They also criticize the Biden administration’s immigration policies, which allowed him to enter illegally in 2024.
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A Colombian national was sentenced this week to decades in prison for sexually exploiting a minor in Missouri, authorities said.
The Department of Homeland Security (DHS) said Brayanne Escobar-Guarnizo was sentenced to 25 years in prison for raping and impregnating a 12-year-old girl.
Escobar-Guarnizo was arrested by the Greene County Sheriff’s Office in September 2024 after authorities received a report alleging he had impregnated the girl.
DHS said investigators uncovered photos and messages allegedly showing that Escobar-Guarnizo repeatedly made advances toward the child and requested nude photos and videos.
MAN WHO PLEADED GUILTY TO RAPING 12-YEAR-OLD RELATIVE IS ILLEGAL IMMIGRANT FROM HONDURAS, DHS SAYS
Brayanne Escobar-Guarnizo was sentenced to 25 years in prison after pleading guilty to sexually exploiting a 12-year-old girl in Missouri, authorities said. (Department of Homeland Security)
According to DHS, Escobar-Guarnizo pleaded guilty to sexual exploitation of a minor in August 2025. He was initially charged with production of child pornography.
He was sentenced Monday to 300 months, or 25 years, in prison.
DHS Acting Assistant Secretary Lauren Bis praised the sentence in a statement.
ILLEGAL ALIEN SENTENCED TO 50 YEARS FOR PRODUCING CHILD PORNOGRAPHY INVOLVING OWN RELATIVES: ‘MONSTER’
Photos and messages showed Escobar-Guarnizo repeatedly made advances toward the child and requested nude photos and videos, according to investigators. (REUTERS/Robert Galbraith)
“This dirtbag was charged with production of child pornography and sexual exploitation of a minor after he raped and impregnated a 12-year-old girl,” Bis said in a statement.
According to DHS, Escobar-Guarnizo illegally entered the United States in 2023 under the Biden administration.
“Thanks to the investigative work of ICE law enforcement officers and our state and local partners, this child predator has now been sentenced to 25 years behind bars,” Bis said. “This illegal alien NEVER should have been allowed into our country by the Biden Administration.”
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Immigration and Customs Enforcement agents at work. (Michael M. Santiago/Getty Images)
“Under Secretary Mullin, we will continue to target criminal illegal aliens and get them OUT of our communities,” she added.
DHS said the sentencing followed an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), along with state and local law enforcement agencies.
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