(JEFFERSON CITY, MO) – On October 7, 2020, Governor Mike Parson announced over $133 million in funding to support critical services in several areas, including nearly $95 million in CARES Act funding and $40 million in general revenue. Nearly $100 million of these funds will support K-12 and higher education.
Due to the financial impact of COVID-19, the state restricted approximately $436 million in spending earlier this year to ensure a balanced budget and the necessary funds to combat the virus moving forward. At the time these budget decisions were made, Missouri’s unemployment rate was projected to be at roughly 16.3 percent.
Currently, Missouri’s actual unemployment rate is at 7 percent – less than half of what was originally projected and lower than the national unemployment rate of 8.4 percent. Additionally, the state’s monthly General Revenue Report released this week showed that net general revenue collections for September 2020 increased 3 percent compared to September 2019, increasing from $917.3 million last year to $944.5 million this year.
Of the $100 million in CARES Act funding, $61.5 million will go to K-12 education, which will be distributed to school districts through the Department of Elementary and Secondary Education on a per-pupil basis.
The remainder of the CARES Act dollars will help support private colleges and universities, assisted living and residential care facilities, child care providers, and independent living centers. The funds will also help citizens suffering from substance use disorders access additional recovery services.
In addition to $10,000 million in CARES Act funds for private colleges and universities, $26 million in general revenue will also go to higher education, including public community colleges and four-year higher education institutions.
The remainder of the general revenue funds will help build on Missouri’s infrastructure and serve military communities, help senior citizens and developmentally disabled citizens access critical services, help those experiencing barriers to entering the workforce, and help fight violent crime through the Attorney General’s Safer Streets Initiative.
The funds will also help ensure that individuals receiving government assistance actually qualify for that assistance, ensuring better accountability for taxpayer dollars.
