Missouri Legislature Resumes With Focus on Tax Cuts and Budget Challenges
As Missouri lawmakers reconvene in Jefferson City for the second half of the 2025 legislative session, the Republican-led legislature has eight weeks to push through significant legislation. Unlike previous sessions marked by discord, this year shows signs of unity, with Republican leadership finding common ground with the far-right Freedom Caucus. Senate Floor Leader Tony Luetkemeyer expressed optimism about the productive start, indicating a commitment to conservative priorities.
Key issues include advancing new bills to Governor Mike Kehoe’s desk. Notably, a bill placing the St. Louis Metropolitan Police Department under a governor-appointed board has already passed both chambers and is expected to be signed into law shortly. Additionally, lawmakers have approved a supplemental budget bill for the current fiscal year.
However, the upcoming budget for fiscal year 2026 faces challenges. Without the federal surplus seen in previous years, Governor Kehoe’s proposed operating budget of approximately $50 billion reflects a decrease from last year’s $51.7 billion. This budget includes a modest 1% salary increase for state workers based on tenure but falls short of fully funding K-12 education.
Tax reform is also a priority, with proposals aimed at reducing and eventually phasing out the state income tax and lowering personal property tax assessments. However, opposition from Democrats is expected, particularly concerning the impact on funding for schools and emergency services.
Lawmakers are also considering several voter-approved measures, including repealing parts of Proposition A, which mandates a minimum wage increase and paid sick leave. Democrats argue such changes undermine the electorate’s will. Overall, with a busy legislative agenda, both parties are gearing up for a contentious but crucial eight weeks.
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