In his 2026 State of the State Address, Missouri Governor Mike Kehoe laid out a promised path towards fiscal responsibility while advocating for the elimination of the state's individual income tax. Governor Kehoe, marking his one-year anniversary since taking office, presented a budget recommendation aimed to closely align the state's ongoing revenues with spending, in an effort to foster what he described as a responsible and conservative fiscal approach, as reported by the Governor's Office.
The proposed budget looks to reduce more than $600 million from the general revenue core operating budget, to quickly address potential financial imbalances on the horizon. Kehoe's address suggested that, by prioritizing fiscal discipline, the state can continue to fulfill its mandatory and high-priority obligations, "including Medicaid matching requirements, child care subsidies, and disaster relief," without impacting the foundational funding for "higher education or the K-12" system. This comes after the state saw over 3,400 new budgetary items adding up to nearly $13 billion in new general revenue spending since FY2022.
A significant highlight of Kehoe's address, sourced from the Governor's Office official website, was his support for a progressive overhaul of Missouri's tax code, starting with the phased elimination of the state's individual income tax. Seeking to lay a foundation for Missouri’s economic competitiveness in the next century, the governor called on the General Assembly "to place a plan for the phased elimination of the individual income tax on the ballot this year." This step hinges on voter approval to set the stage for legislative action in the following session.
Alongside budgetary tweaks, Governor Kehoe passed four executive orders in concert with his address. These orders range from establishing a school accountability system and employing artificial intelligence within state operations to enhancing government efficiency and advancing nuclear energy development. An unwavering stance from the governor indicates that eliminating the individual income tax will not lead "to runaway sales taxes," pledging not to support extending sales taxes to sectors such as "agriculture, healthcare, or real estate," as per the Governor's Office.
The address included special guests who echoed various sectors of Missouri's community, from reflecting economic development tools and public safety initiatives to honoring the future of agriculture, the availability of educational opportunities, and saluting the state's first responders. For a detailed look at Governor Kehoe's State of the State Address, or to view the full spectrum of the legislative and budget priorities discussed, the public can access documents through the links provided on the state's website, including a transcript of the address, the 2026 legislative and budget priorities, and supplementary photos and video content from the event.
