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Missouri’s surplus may vanish by 2028 unless spending cuts are made, warned Auditor Scott Fitzpatrick.
Missouri State Auditor Scott Fitzpatrick warns the state’s general revenue surplus could be depleted by 2028 unless spending is reduced, citing a $400 million shortfall in fiscal 2026 and a 2.1% revenue decline—the first such drop outside a recession since 2020.
He attributes the strain to spending growing 45% over five years while revenue rose 45.8%, with federal aid and inflation-driven gains fading.
Tax changes, including the elimination of Missouri’s capital gains tax, and reduced federal funding are expected to worsen the gap.
A recession could accelerate depletion to 2027, with a projected $3.8 billion shortfall.
Fitzpatrick urges lawmakers to act now to avoid emergency cuts, as the fund balance fell to $3.4 billion by November 2025.
Governor Mike Kehoe plans to unveil a tight budget on January 13.
El excedente de Missouri puede desaparecer en 2028 a menos que se hagan recortes en el gasto, advirtió el auditor Scott Fitzpatrick.