Parson restricts state spending

Gov. Mike Parson cited the COVID-19-related economic slowdown in restricting state spending of $176 million Wednesday.

“Up until this point in my administration, we have been very fortunate to have a booming economy with record low unemployment and high wage growth. Incomes have gone up, and taxes have gone down,” the governor said at a news conference. “We have, at many times, had more jobs available than people to fill them. Because of this, we have been able to focus on skilling-up our workforce and making necessary investments in infrastructure.”

Higher Education and Workforce Development, Transportation, Natural Resources and Economic Development, as well as the Office of Administration, were among the departments directed to not spend certain allocated funds.

The state’s four-year colleges and universities took the largest hit — $61,321,869 — according to a list of specific restricted spending. The list did not specify how much each institution would be restricted from spending. The list is available online at www.oa.mo.gov/budget-planning/budget-information/2020-budget-information.

The restrictions among all departments total $175,983,774.

Though this fiscal year’s state budget had a $100 million unappropriated buffer, Parson said the restrictions are prudent.

“The impact of COVID-19 has already been hard felt in our economy. More people are staying home, business operations have been limited, many people have lost their jobs, and state revenues are down,” he noted. “This has had a serious impact on our anticipated economic growth, so we’ve had to take a hard look at our budget and make some very difficult decisions.”

Parson also said he is “hopeful” for additional federal funding this year totaling $315 million but may need to further restrict spending.