Missouri Governor Hesitant to Use Capitol Renovation Funds for Schools
Gov. Mike Kehoe questions Senate plan to use $225 million in Capitol renovation money for schools, calling it inappropriate to use one-time funds for ongoing expenses.
JEFFERSON CITY, MISSOURI — Governor Mike Kehoe expressed reluctance Thursday to support a Missouri Senate decision that would redirect money originally set aside for Capitol renovations to help fund public schools, citing concerns about using one-time money for ongoing expenses.
The Senate on Wednesday approved a $48.8 billion operating budget that includes $225 million from the Missouri State Capitol Commission fund to address education funding shortfalls. State Senator Rusty Black, a Chillicothe Republican who chairs the Senate Appropriations Committee, allocated $118 million from the fund for the foundation formula and another $15 million for school transportation needs.
Speaking to reporters at a news conference in his office, Kehoe said lawmakers who originally set aside $600 million in surplus general revenue in 2022 and 2023 had served the state well by preserving funds to restore the statehouse. The money has remained largely unspent as officials develop renovation plans.
Governor Cites Two Key Concerns
“It’s a little bit about trying to make sure we restore the Capitol for future generations,” Kehoe said. “It’s also about using one time money to fix an ongoing problem. Sometimes it’s not the best way to work with it.”
State Representative Dirk Deaton, a Seneca Republican who chairs the House Budget Committee, also expressed hesitation about the Senate’s approach. Democrats had previously asked Deaton to use money from the Capitol fund during House consideration of the budget, but he declined.
“I felt it probably was not appropriate to go there this year, and I still feel this way,” Deaton said in an interview.
Education Revenue Shortfall Drives Debate
The Senate budget plan attempts to address a shortfall in revenue from lottery proceeds, casino taxes and cigarette taxes, all of which are designated for education funding. The revenue decline has created pressure to find alternative funding sources for Missouri’s public schools.
Despite their reservations, neither Kehoe nor Deaton completely dismissed the Senate’s proposal. The governor and House budget chairman indicated they remain open to discussions as budget negotiations continue between the two chambers.
The Missouri State Capitol Commission fund was established with surplus general revenue to support the preservation and restoration of the historic statehouse. Officials have been developing comprehensive renovation plans while the designated funds remain in reserve.
Next Steps in Budget Process
The budget now returns to the House for consideration of the Senate’s changes. Lawmakers must reconcile differences between the House and Senate versions before sending a final spending plan to the governor’s desk.
The debate highlights ongoing tensions in Missouri over education funding priorities and the appropriate use of designated state funds. School districts across the state have advocated for increased funding to address rising costs and maintain educational programs.
