The State of the State

This week, the governor delivered his annual State of the State Address to a joint session of the General Assembly. The governor began his speech recalling successes from the previous year: the largest tax cut in Missouri’s history, continued economic growth and Missouri’s 2.4% unemployment rate, the lowest in state history. He claimed the “even stronger tomorrow” pledged in last year’s State of the State had arrived, and declared “We are not done yet!”

Striking familiar themes, the governor focused on infrastructure investment and increased funding for education. Perhaps the biggest news to come out of the address was his request for $859 million to fund improvements along Interstate 70. He also asked the legislature to spend additional money on early childhood education, K-12 classrooms, colleges and universities. For the second year in a row, his budget fully funds the state’s share of school transportation costs. He also envisions additional money for broadband internet, pay raises for state employees, improvements to railroad crossings and safety enhancements at schools.

Repeating the “we’re not done yet” theme several times, the governor presented one new spending proposal after another. Although he never mentioned a bottom line during the speech, his Fiscal Year 2024 budget request adds up to nearly $51 billion. That staggering total is on the heels of the current year’s eye-popping $44 billion budget, and what now seems like a modest $32 billion budget in FY 2022. Continuing a trend that began during the COVID pandemic, the proposed 2024 budget leans heavily on federal money. While general revenue from taxes collected directly from Missourians shows modest growth, the federal government’s share of the state budget has nearly doubled in the past two years. I hope we never forget federal money isn’t free. It comes from taxes we all pay, but also from borrowed money our children and grandchildren will have to repay.

I couldn’t help but notice many of the governor’s calls for new programs and increased spending were met with applause on the other side of the political aisle. I imagine some members of the majority will be casting a more skeptical eye as the budget review process moves forward. As a member of the Senate Appropriations Committee, I’ll keep an open mind, but I will be taking a close look at all of the governor’s spending requests as we prepare our own version of the state budget and review budget numbers from the House of Representatives. I am especially concerned about funding on-going programs with one-time federal dollars that won’t be there in the future.

I also found it remarkable many of the Legislature’s priorities for 2023 were absent in the governor’s speech. There was no call to further reduce taxes on hardworking Missourians, no urgency to reform our state’s initiative petition process, no reference to CRT curriculum in schools or the need to join our neighboring states in allowing sports betting and video lottery terminals to fund our veterans homes and cemeteries. As we consider the governor’s priorities, I hope he will also be receptive to ours.

In other legislative activity, I stepped away from my chairman’s role briefly and took my place at the witness table to present Senate Bill 3 to the Economic Development and Tax Policy Committee. This legislation, the first bill heard by a committee in 2013, creates an office of Regulatory Relief within the Department of Economic Development. This office could waive or suspend state laws and regulations on a case-by-case basis to help Missouri businesses launch new products or provide innovative services. The “Regulatory Sandbox Act” mirrors similar programs in other states, where temporary relief from regulation has allowed business start-ups to prove the viability of new products and services.

There are more committee hearings scheduled for next week, as we begin the task of reviewing many of the 500-plus bills and resolutions currently before the Senate. I’ll keep you informed about the progress of these legislative proposals as the session continues. In the meantime, I’d very much like to visit with you and hear your thoughts. If you’re in the Capitol, please stop by my office.

As always, I appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-4302. You may also email me at denny.hoskins@senate.mo.gov.