Missouri Republican Gov. Mike Parson said the state’s tax rate would be reduced to 5.3% and state employees need a 5.5% pay increase on Wednesday in his state-of-the-state address.
After delivering last year’s annual speech in the Senate due to COVID-19, Gov. Parson returned to the House of Representatives for this year’s address. As the Department of Health and Human Services’ website shows Missouri tracking to surpass one million COVID-19 infections during the next few days, Parson said Missouri’s pandemic recovery was due to keeping businesses open and not enforcing any mandates for its 6 million citizens.
“We will be making investments in the future because in Missouri, we took a common-sense approach to the pandemic, never shut down business and have always had a conservative and balanced budget,” Parson said.
A long delay was caused by a standing ovation supporting the pay increase for state employees.
“I know that many of you would agree that Missouri has some of the best of the best in our ranks,” Parson said. “The success of our state relies heavily on these public servants, and we must ensure we are able to recruit and retain quality team members to serve Missouri….This is long overdue.”
After announcing the tax reduction, the governor called to create a cash operating expense fund to set aside 2.5% of general revenue, approximately $281 million.
Parson noted the state ranks 50th in the United States for starting teacher pay, and approximately half of new teachers leave the profession by their fifth year. He pledged to partner with public school districts to increase the baseline salary for new teachers to $38,000. He said his budget would fully fund the state’s education formula, which wasn’t accomplished last year.
The governor didn’t elaborate on how $2.7 billion in American Rescue Plan Act (ARPA) funds – federal COVID-19 relief dollars – would be spent in his proposed budget. However, the governor’s office distributed prioritized infrastructure, health care and economic programs. He pledged to make $250 million available for communities to improve water and wastewater systems and another $150 million to enhance stormwater systems.
“With a historic budget surplus and federal dollars coming to our state, we want to build on our past momentum to capture even greater opportunities for the future of Missourians,” Parson said. “But I want to remind you that our economy is strong despite federal funding. When other states will be using federal dollars to fill spending gaps and budget shortfalls, we will be making investments in the future.”
The Missouri Budget Project, a nonprofit public policy analysis organization, said focusing on individuals will contribute as much as focusing on small businesses when planning economic recovery.
“Missouri legislators have an extraordinary opportunity make transformative, one-time investments that can both address the health and economic consequences of the pandemic and build toward a better and more equitable future for all Missourians,” Amy Blouin, president and chief executive of the Missouri Budget Project, said in a statement. “Every Missourian deserves the opportunity to thrive, with quality housing they can afford, a job that lets them provide for their families, and a strong community. By investing in the things that help all of our families succeed, we can build a stronger foundation for our state’s economic prosperity.”
Gov. Parson appeared to tear up during his closing as he recalled being on the tarmac at Lambert Airport in St. Louis in September when the body of Jared Schmitz, a U.S. Marine who was one of 13 servicemen killed by a suicide bomber during the evacuation of Afghanistan, was returned home. He said the outpouring of support for Schmitz and his family showed a unity that’s possible in our state and country.
“When our nation couldn’t be more divided, I saw a community that couldn’t be closer,” Gov. Parson said. “When a family felt pain and loss, I saw them embraced by friends, neighbors and total strangers. In this challenging moment, I saw the best of who Missourians are.”
