Governor Kehoe Delivers State of the State Address

On the anniversary of his inauguration as Missouri’s 58th Governor, Mike Kehoe addressed the Missouri General Assembly with the 2026 State of the State speech, outlining his legislative agenda and budget recommendations for Fiscal Year 2027. Kehoe’s address focused on fiscal responsibility, as he proposed a conservative budget aimed at aligning ongoing state spending with reliable revenue sources, moving away from the extraordinary federal funds and increased general revenue that characterized the past few years.

The governor emphasized a return to sustainable, pre-pandemic financial practices, stating, “Today, we delivered a budget recommendation that focuses on the core functions of government and how we can best serve Missourians without overpromising and overspending. Our recommendation proves that state government can live within its means, and our economy can grow and deliver results for taxpayers all at the same time.”

Since Fiscal Year 2022, Missouri has added over 3,400 new budget items, with nearly $13 billion in new general revenue spending. To address a projected future imbalance of more than $2 billion, Kehoe’s plan proposes over $600 million in reductions to the general revenue core operating budget. These cuts, he said, would maintain fiscal discipline while ensuring continued support for mandatory and high-priority obligations such as Medicaid matching, child care subsidies, and disaster relief. Notably, the plan does not reduce core funding for higher education or the K-12 foundation formula.

Governor Kehoe also used his address to advocate for the eventual elimination of Missouri’s individual income tax, calling for a responsible and sustainable approach. He urged lawmakers to pass a joint resolution placing the phased elimination of the income tax before voters on the ballot this year, allowing legislative action in the next session if approved.

Kehoe outlined potential new revenue sources from untaxed modern services and described safeguards in his plan, including triggered reductions to the income tax rate, to protect the state against economic downturns. He assured Missourians that he would not support extending sales taxes to agriculture, healthcare, or real estate, emphasizing the need for a tax code fit for the state’s future.

Looking back on his first year in office, Kehoe highlighted progress in his administration’s four key areas: public safety, economic development, agriculture, and education. He detailed his ongoing commitment to these priorities with both legislative proposals and budget recommendations presented to the General Assembly.

In conjunction with his address, Governor Kehoe signed four executive orders. Executive Order 26-01 creates a statewide school accountability A-F grade card. Executive Order 26-02 affirms the administration’s commitment to safe and effective use of artificial intelligence in state government. Executive Order 26-03 establishes the Missouri Government Responsibility, Efficiency, Accountability, and Transformation initiative, or Missouri GREAT, to improve government efficiency. Executive Order 26-04 forms the Advanced Nuclear Energy Task Force to promote nuclear energy deployment within the state.

KPGZ News – Brian Watts contributed to this story.

Kehoe Signs Proposition A Relief Bill

Missouri Governor Mike Kehoe signed HB 567 into law today, providing relief to businesses by removing Proposition A’s paid sick leave mandate. The bill, sponsored by Rep. Sherri Gallick of Belton and handled in the Senate by Sen. Mike Bernskoetter of Jefferson City, keeps the statewide minimum wage at $15 but eliminates automatic annual wage increases tied to the Consumer Price Index. The law takes effect August 28.

Proposition A, passed last year, required paid sick leave for all employees and set up yearly minimum wage hikes based on inflation. Business groups, including the Missouri Chamber of Commerce and Industry, argued that these mandates made it harder to plan and threatened jobs, especially for small and mid-sized companies. The Chamber led a coalition of over 550 businesses to advocate for HB 567 as its top legislative priority in 2025.

Chamber President Kara Corches praised the new law, saying, “Business owners were clear: Proposition A’s paid leave and minimum wage policies were a job killer. Missouri employers value their employees and recognize the importance of offering competitive wages and benefits, but one-size-fits-all mandates threaten growth.”

While the business community welcomes the change, worker advocates warn that ending the sick leave requirement removes a vital protection, especially for low-wage employees. They also caution that eliminating CPI-based wage increases could allow inflation to erode workers’ buying power.

Looking ahead, Proposition A supporters have already filed paperwork for a 2026 constitutional amendment to restore the paid sick leave mandate and CPI-linked wage hikes. Both business and worker advocacy groups are preparing for a renewed battle over Missouri’s labor laws.

For now, Missouri employers will see more flexibility and predictability in managing labor costs, but the debate over paid leave and minimum wage policy is far from over.

KPGZ News – Brian Watts contributed to this story

Missouri Moves Forward with Show Me Sports Investment Act

Missouri lawmakers have passed the “Show Me Sports Investment Act,” a major funding proposal aimed at keeping the Kansas City Chiefs and Royals from moving across state lines. The bill, approved during a special legislative session, offers significant financial incentives to support new stadium construction for professional sports teams in Missouri, just as Kansas is making a competing push with its own generous funding program.

The plan allows the state to fund up to 50% of stadium construction costs for projects costing at least $500 million and seating at least 30,000 people. It also provides teams with a 10% investment tax credit, capped at $50 million per project. To receive funding, projects must have local government support, and safeguards are in place, including annual legislative reviews and a clause that requires teams to repay the state if they relocate.

The bill passed the House 90–58 and now heads to Governor Mike Kehoe, who is expected to sign it. Kehoe, a vocal supporter of the plan, has emphasized the need to act swiftly before Kansas’ own incentives expire on June 30. Kansas has offered to fund up to 70% of new stadium construction through its STAR bonds program, a serious enticement for both teams, whose leases at the Truman Sports Complex expire in January 2031. The Royals are currently considering sites for a new stadium, including locations in North Kansas City, downtown Kansas City, and potential options in Kansas.

Supporters of the Missouri plan argue that retaining the teams would have a powerful economic impact. Studies commissioned by the franchises estimate that Arrowhead Stadium alone generates $28.8 million in tax revenue and supports over 4,600 jobs, while a new Royals ballpark district could deliver more than 8,400 jobs and $1.2 billion in annual economic activity.

“This bill gives Governor Mike Kehoe the tools he needs to negotiate a deal to keep The Kansas City Chiefs in Missouri, bring the Kansas City Royals to Clay County, and provides the opportunity for property tax relief for my Clinton County constituents,” said Representative Josh Hurlbert (MO-08). “I was glad to help send this bill to the Governor’s desk.”

Not all lawmakers are convinced. Some critics argue the plan lacks transparency and places an unfair burden on taxpayers while benefiting billion-dollar franchises. Representative Michael Davis and others raised concerns about the speed and structure of the legislation, warning it may not deliver the return on investment supporters hope for.

While the bill marks a significant step, additional decisions lie ahead. Local governments must still approve matching funding, and both the Chiefs and Royals will have to weigh Missouri’s offer against Kansas’ more aggressive incentives. In statements following the vote, both teams acknowledged the bill as a meaningful part of their future planning—though neither committed to a final decision.

The coming weeks will be crucial in determining whether Missouri’s investment will be enough to keep two of its most iconic sports franchises at home.

KPGZ News – Brian Watts contributed to this story.

Mike Kehoe Sworn in as Governor of Missouri

On Monday, January 13, Mike Kehoe was sworn in as the 58th Governor of Missouri, at a ceremony at the Missouri State Capitol, marking a new chapter of leadership for the state.

Building on his distinguished record of public service, successful business career, and an unwavering commitment to Missouri’s communities, Governor Kehoe vowed to honor the state’s rich legacy while forging an ambitious path toward a brighter future. With a focus on public safety, education, economic development, and agriculture, he outlined his administration’s goal to tackle the most pressing challenges and seize the opportunities for growth.

“My life—growing up in the inner city, moving to a small town, building businesses, operating a ranch—these experiences have taught me one thing: Missourian’s are more alike than we are different,” said Governor Kehoe. "It will take each of us, working together, to secure an even safer, stronger, and more prosperous Missouri.”

For his first official act in office, Governor Mike Kehoe took decisive action to prioritize public safety by signing six executive orders and officially launching his comprehensive Safer Missouri public safety initiative.

Developed in close collaboration with law enforcement partners and representatives across all levels of law enforcement within the state, the Safer Missouri plan sets the stage for immediate and impactful action. The measures introduced today represent the first steps in a comprehensive, multi-phase plan that focuses on reducing crime, supporting law enforcement, and fostering community partnerships to achieve lasting change.

Further steps requiring General Assembly action are slated for implementation in the coming weeks, with additional details to be unveiled during Governor Kehoe’s 2025 State of the State address.

"By standing with the brave officers who protect us every day and implementing strategic, forward-thinking measures, we are working to make Missouri a safer place to live, work and raise a family," said Governor Kehoe. "In the coming weeks, months, and years, my administration will be relentless in our pursuit to make Missouri a place where it’s easier to be a cop than a criminal."

Other Executive Orders have been posted HERE.

KPGZ News – Brian Watts contributed to this story.