Missouri – The top budget officials in Missouri have come to an agreement on a major financial outlook that could affect how the state expects to spend money in the next year. Governor Mike Kehoe, Senate Appropriations Chairman Rusty Black, and House Budget Chairman Dirk Deaton unveiled the state’s Consensus Revenue Estimate for Fiscal Year 2027. This was the official start of the next budget cycle.
Each year, state budget officials work with economists from the University of Missouri and Missouri State University to come up with the Consensus Revenue Estimate, or CRE. The number is a consensus prediction that the governor and the General Assembly use to make a balanced state budget, which is what Missouri’s constitution says they must do.
The government expects to collect $13.65 billion in net general revenue for the fiscal year 2027. That number is 3.8 percent higher than what was thought to be the revenues for fiscal year 2026. At the same time, the new forecast for the current fiscal year reveals a fall, with net general revenues now estimated to be $13.15 billion, a drop of 2.1 percent from previous estimates.
Governor Kehoe said that Missouri’s economy remains stable, but the approaching budget process would be hard.
“We appreciate the work of our state budget team, House and Senate leaders, and our university economic experts in developing this revenue estimate to guide our budget for the next fiscal year,” said Governor Kehoe.
“As Governor, I have a constitutional obligation to balance the budget. While Missouri’s economy remains strong and solid revenues are expected, the FY2027 budget will be challenging. Spending, not revenues, is the problem facing state government. We look forward to presenting the legislature with a responsible budget that reflects our commitment to fiscal discipline and a long-term vision for growth.”
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Senate Appropriations Chairman Rusty Black said that the consensus estimate was a very important step in the legislative process. He stated that the revenue agreement lets lawmakers start looking at the budget in detail as soon as the governor sends in his proposal. Black additionally stated that the Senate’s main goal will be to come up with a responsible spending plan that meets the needs and priorities of all Missourians.
House Budget Chairman Dirk Deaton said the same thing, pointing to recent legislative initiatives that supported important programs and also gave Missouri households tax breaks. He did, however, warn that any new or increased spending will have effects and should be carefully considered. Deaton added that the House is ready to work closely with the governor and the Senate to come to a budget agreement that will last.
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On Tuesday, January 13, 2026, at 3:00 p.m., Governor Kehoe will give the State of the State Address for 2026. In it, he will talk about his budget proposal for fiscal year 2027 and other important legislative issues.
