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Education Funding Released After Veto Session’s Close



Governor Nixon’s “Friday Favors” tax break bill vetoes were brought to lawmakers during the September 10th veto session in Jefferson City. The Governor’s tax break-specific vetoes were sustained, and he announced on Thursday that $143.6 million would be released back into the General Revenue.


Learn more about the Governor’s precautionary adjustment of the General Revenue in this post.

Governor Nixon applauded the General Assembly for its decision to sustain his veto of those special interest tax break bills:

“Presented with a clear choice between supporting local schools and siding with special interests, the General Assembly yesterday stood with us and made the right decision to invest in the best economic development tool there is: public education,” he said. (source)

Taken individually, the Friday Favors arguably offered reasonable incentives to businesses. When viewed collectively, however, the bills had the potential to reduce the Missouri General Revenue by an estimated $425 million. Funding for Missouri’s K-12 and higher education institutions makes up 45% of the General Revenue, so the $425 reduction in revenues would have significantly impacted Missouri students.

One of the most-discussed bills in the veto session was Senate Bill 584—a bill that gave tax exemptions that many lawmakers argued were overly vague—to data centers. SB 584 would have cost the state revenues, but it would also have cost local municipalities. Greene County, for instance, would have lost around $5.3 million as a result of provisions in SB 584.

By sustaining vetoes of SB 584 and other special interest tax break bills, Missouri legislators have chosen to support to schools and students all over the state. The $143.6 million that has been released back into the General Revenue will go to local school districts and higher education institutions, benefiting nearly a million students, statewide.

Governor Nixon called the release of those General Revenue funds for education a bi-partisan effort:

“The resources I’m announcing today are possible because legislators of both parties came together and agree that it’s time to invest in our schools.” (source)

Of the $143.6 million in released funding, $100.2 million supports the Missouri Foundation Formula, while more than $43.3 million is dedicated to performance funding for Missouri higher education.

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