Governor Mike Kehoe delivered the 2026 State of the State Address to the Missouri General Assembly, outlining his legislative priorities and budget for Fiscal Year (FY) 2027. The Governor’s address centered on delivering a responsible, conservative budget recommendation. As state finances normalize following the influx of unprecedented federal funds and elevated general revenue spending, the Governor’s budget starts to align ongoing spending with ongoing revenues in an effort to return state finances to a sustainable, pre-pandemic framework. Governor Kehoe’s recommendation reduces more than $600 million from the general revenue core operating budget, beginning to address a projected future imbalance exceeding $2 billion. These reductions prioritize fiscal discipline while continuing to meet mandatory and high-priority obligations, including Medicaid matching requirements, child care subsidies, and disaster relief, without cutting core funding for higher education or the K-12 foundation formula. While emphasizing smaller government and fiscal discipline, Governor Kehoe highlighted his support for modernizing Missouri’s tax code by eliminating Missouri’s individual income tax through a responsible, sustainable plan.