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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KANSAS CITY, Mo. — The Kansas City, Missouri, City Council voted Thursday to begin an effort to restore the once-grand Federal Reserve building on Grand Avenue in the city’s downtown.
Courtesy of Alicia M Brady, Urban Alicia Photography
The council approved an ordinance that directs KCMO City Manager Mario Vasquez to begin the receivership process “for the vacant nuisance property known as the former Federal Reserve Bank of Kansas City.”
The building closed in 2008 and neglect followed the closure, according to a docket memo to the city council that lays out problems with the building.
You can read the docket memo below.
“The site’s vacancy and nuisance conditions directly and increasingly depreciate the value of nearby properties and depress regional commercial activity; and residents and property owners near the site lament the nearly two decades of inactivity and decomposition, citing both aesthetic and security concerns involving the site’s crumbling exterior, graffiti covering the interior, broken glass and refuse strewn throughout, exposed ceilings with materials left dangling, an unsecured elevator shaft, and the site’s serving as a haven for squatting, fires, and other chronic nuisance activities; and the city has received multiple reports of property violations at the site over time, including falling debris and people entering through unsecured entrances, and the current developer’s failure to prevent and remediate these nuisances violates Code of Ordinances Sections 48-31 and 48-46(c), among other provisions.”
A developer bought the site in 2013, and the city approved a financial incentive deal in 2016 for the developer to build a 284-room hotel, a 450-space parking garage and a 40,000-square-foot family entertainment center.
The cost of the development was estimated at $182 million, but after investing $42 million in asbestos removal and interior demolition by April 2021, no other progress has been made on the project.
In 2022, the current developer got a temporary restraining order to avoid foreclosure after a default notice “alleging failure to maintain property insurance, unpaid property taxes, and outstanding mechanic’s liens,” according to a docket memo.
KSHB 41 News reached out to Alicia Brady, an Iowa-based photographer whose work includes photographs of the building’s decay.
Courtesy of Alicia M Brady, Urban Alicia Photography
“I was thrilled to learn that the mayor came across my post and photographs and that they helped spark action toward getting the former Federal Reserve building back on track for rehabilitation,” Brady said in an email to KSHB 41 News. “As someone who has been documenting abandoned and historic buildings since I was 15 years old, it’s incredibly rewarding to know that my work may have played a small part in preserving such an important piece of Kansas City’s history.”
KCMO Mayor Quinton Lucas posted on LinkedIn about Thursday’s council action.
“Since 2008, the old Federal Reserve Bank building has sat empty, left open to the elements, vandals, fires, neglect and decay,” Mayor Lucas said. “ No more. We’re taking action to ensure accountability from property owners and new life in this tower in the heart of our downtown.”
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Missouri
Missouri Partners With Trump Administration To Speed Nuclear, Infrastructure Projects – Missourinet
Missouri is taking another step toward expanding nuclear energy and other major infrastructure projects through a new partnership with the federal government.
Gov. Mike Kehoe signed a memorandum of understanding Wednesday with the Federal Permitting Improvement Steering Council at Ameren Missouri’s Callaway Energy Center near Steedman. The agreement is designed to better coordinate state and federal reviews, reduce permitting delays and increase transparency for major projects.
Kehoe said the partnership supports Missouri’s efforts to move quickly on future energy development, particularly nuclear energy.
“Missouri is proud to join four other states in signing the MOU, and we appreciate the Trump administration for helping us out to get to this goal, which, if you’ve been around me at all, you understand we don’t work at bureaucratic speed. We like business speed,” Kehoe said.
Under the agreement, Missouri will work with the Permitting Council to identify priority infrastructure projects and align state and federal review timelines. Federal officials say the partnership will help streamline project approvals while avoiding duplication between agencies.
The agreement comes as Missouri leaders continue exploring the future of nuclear energy. In May, Kehoe created a nuclear energy task force to examine how nuclear power can support the state’s long-term energy reliability and economic growth.
Missouri Department of Natural Resources Director Kurt Schaefer said the state is well-positioned to take advantage of the opportunity.
“We’re right at this culmination of having the right people in the state of Missouri and having the right people in Washington, D.C. to really try and bring not only Missouri, but the country really up to speed on everything from energy development, particularly nuclear, to critical mineral development that really have been kind of languishing for a lot of years,” Schaefer said.
Schaefer said the agreement could help remove delays that have slowed major projects in the past.
“With the Department of Natural Resources, the speed of business gets T-boned by the speed of the federal government. So, this couldn’t have come at a better time to get these reports out of how we can advance both nuclear energy and critical minerals and then work with the federal government to make sure that we don’t have any bureaucratic slowdowns on that end,” he said.
The Trump administration is using the agreement process to work directly with states on critical infrastructure projects. Missouri is the fifth state to sign an agreement with the Permitting Council, joining Alaska, Idaho, Tennessee and Utah.
Copyright © 2026 · Missourinet
The Missouri Lottery offers several draw games for those aiming to win big.
Here’s a look at July 1, 2026, results for each game:
Winning Powerball numbers from July 1 drawing
02-06-26-39-68, Powerball: 06, Power Play: 2
Check Powerball payouts and previous drawings here.
Winning Pick 3 numbers from July 1 drawing
Midday: 1-3-3
Midday Wild: 9
Evening: 3-8-0
Evening Wild: 5
Check Pick 3 payouts and previous drawings here.
Winning Pick 4 numbers from July 1 drawing
Midday: 0-5-9-5
Midday Wild: 1
Evening: 5-4-4-8
Evening Wild: 5
Check Pick 4 payouts and previous drawings here.
Winning Cash Pop numbers from July 1 drawing
Early Bird: 12
Morning: 03
Matinee: 01
Prime Time: 07
Night Owl: 02
Check Cash Pop payouts and previous drawings here.
Winning Show Me Cash numbers from July 1 drawing
05-07-18-25-33
Check Show Me Cash payouts and previous drawings here.
Winning Powerball Double Play numbers from July 1 drawing
10-20-30-60-64, Powerball: 07
Check Powerball Double Play 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.
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