Over $133 million in restricted funding is released in Missouri

Today, Governor Mike Parson announced over $133 million in funding to support critical services in several areas, including nearly $95 million in CARES Act funding and $40 million in general revenue. Nearly $100 million of these funds will support K-12 and higher education. 

“When we evaluated the impact of COVID-19 on Missouri’s economy and state revenues back in June, we had to make some difficult decisions to keep our budget balanced,” Governor Parson said. “However, we promised to reevaluate our spending after the first quarter of Fiscal Year 2021, and that is what we have done.” 

Due to the financial impact of COVID-19, the state restricted approximately $436 million in spending earlier this year to ensure a balanced budget and the necessary funds to combat the virus moving forward. At the time these budget decisions were made, Missouri’s unemployment rate was projected to be at roughly 16.3 percent. 

Currently, Missouri’s actual unemployment rate is at 7 percent – less than half of what was originally projected and lower than the national unemployment rate of 8.4 percent. Additionally, the state’s monthly General Revenue Report released this week showed that net general revenue collections for September 2020 increased 3 percent compared to September 2019, increasing from $917.3 million last year to $944.5 million this year.

“As a result of our Show Me Strong Recovery Plan, we are outpacing our projected budget forecast, and we are now in a position to release some of the funding that was restricted earlier this year,” Governor Parson said. “We are excited to be able to announce these funds today and will continue to evaluate our budget and spending as we move forward.”