A Balanced State Operating Budget

By Mo State Senator Mike Henderson

JEFFERSON CITY – Drafting a balanced state operating budget for the upcoming fiscal year is the Missouri General Assembly’s only constitutional mandate each legislative session, and it is one of our most important and complicated duties.

On April 3, the Missouri House of Representatives approved a $47.9 billion state operating budget for Fiscal Year 2026 and sent it to the Senate. The Senate Appropriations Committee, which I proudly serve on, began the extensive “markup” process, going through the budget, line-by-line, deciding what to keep and what to cut. That process is now complete, and the budget will be brought to the Senate floor and discussed by the entire body. Once passed by the Senate, the budget will head back to the House for final approval. If the House doesn’t accept our changes, the differences will be resolved by a conference committee, consisting of members from both chambers. The full Legislature must pass a final budget one week before the end of session. This year, our deadline is May 9.

The Senate worked late into the night a couple times over the last two weeks debating House Bill 567, which modifies many of the provisions included in Proposition A. Proposition A, approved by voters in last November’s election, requires Missouri employers to provide paid sick leave to their employees starting May 1, 2025. Proposition A also gradually raises the state’s minimum wage to $15 an hour in 2026. Every year thereafter, annual adjustments to the minimum wage would be based on Consumer Price Index (CPI) percentage increases.

Without adjustments, Proposition A could be detrimental to many of Missouri’s small businesses. Several small business owners are confused about how to comply with these new requirements and concerned the new law could force them to cut hours, lay off employees or even close their doors. The Senate’s majority caucus is working to clarify the law and protect Missouri employers, especially small businesses, from costly, one-size-fits-all mandates. We hope to limit the number of employees a business has to have before initiating paid sick leave. In addition, we would like to remove the CPI from the $15 per hour minimum wage. The Senate will continue to try and work this out for the best interest of everyone.

The governor encouraged the General Assembly to pass a bill this session restricting public and charter school students from using cell phones during school hours. I am happy to report that Senate Bill 68, my bill creating a better learning environment for students and improving school safety, was third read and passed by the House on April 24. The House did add a number of amendments, so I will spend the next several days reviewing their changes, and then the Senate will need to vote on the bill again, either passing it or sending it to a conference committee. Senate Bill 68 would require Missouri schools to adopt policies prohibiting the use of cell phones and other personal electric communication devices during school hours, except for emergencies or instructional purposes. Senate Bill 68 would also require every local education agency to report school safety incidents and credible school threats to the Missouri Department of Education.

On April 16, the Senate’s president pro tem signed Senate Bill 22 and Senate Bill 47. Senate Bill 22 reworks how ballot issue summaries are written to prevent judges from rewriting ballot summaries sent to voters, and SB 47 promotes fairness in Missouri’s legal system. Both bills were sent to the governor for his signature.

Other bills third read and passed since my last Capitol report include:

  • Senate Joint Resolution 40was third read and passed on April 24. If approved by voters, SJR 40 would require most Missouri counties to elect their sheriffs.
  • The Senate third read and passed House Bills 595 & 343on April 22 and sent the measure back to the House. This proposal prohibits counties and cities from enacting, maintaining or enforcing certain ordinances relating to property owners and tenants.
  • Senate Bill 360, the Education Freedom Act,was third read and passed on April 17. This legislation reforms Missouri’s statewide education assessment system, school accountability measures and the powers of the State Board of Education, emphasizing local control and flexibility in the state’s education system. The bill now heads to the House for further consideration.
  • Senate Bill 271was third read and passed on April 17. This measure modifies provisions relating to fire protection ordinances.
  • Senate Bill 120was third read and passed on April 14. This bill reforms how certain state departments manage and spend money. The goal is to improve oversight, ensure proper use and protect taxpayer dollars.
  • Senate Joint Resolution 46was third read and passed on April 14. This eliminates property taxes for disabled veterans.
  • Senate Bill 80was third read and passed on April 14. This bill allows high school athletes to seek compensation for their name, image and likeness, giving them access to potentially life-changing funds.

I am here to serve you. If I can be of any assistance with a state issue, please call my office at 573-751-4008. If you are ever in Jefferson City, please stop by our beautiful State Capitol and visit me in Room 431.