The Problem
Missouri’s government continues to grow in both size and scope while tax revenues are expected to stagnate in the coming years.
The Solution
Complete a comprehensive review of Missouri’s government to rein in unnecessary spending and regulation.
Key Facts
- Missouri’s net general revenue collections for Fiscal Year 2025 were essentially flat and are expected to be similar in Fiscal Year 2026.
- Missouri’s spending of state revenue sources has increased by more than 75% over the past five years, and is expected to outpace tax revenue growth in the next few years.
- Successful state-based efficiency efforts have been enacted across the country over the past 50 years and have saved taxpayers billions of dollars.
Something’s Gotta Give
Missouri’s tax revenue collections have grown at an average rate of nearly 9% over the past five years, but state spending has grown at an even faster rate of more than 10%. To make matters worse, Missouri’s official estimates now project state revenues to remain essentially flat in the coming years. Given that the cost of providing the same level of services increases over time, and that Missouri’s constitution has a balanced-budget requirement, it should be obvious that this troubling trend cannot continue.
Learn from Other States’ Experiences
Nearly 60 years ago, then-California Governor Ronald Reagan established what was perhaps the most successful state-based cost-cutting initiative in history with an executive order. The “Governor’s Survey on Efficiency and Cost Control” enlisted the help of more than 200 private-sector leaders to recommend, in short order, more than 2,000 reforms to improve California’s government operations and reduce costs. All told, the recommendations included savings of upwards of $4.2 billion in today’s dollars.
Over the past year, following the lead of Reagan and the recent work conducted by the federal Department of Government Efficiency, more than 20 states have established their own cost-cutting initiatives. While Missouri’s general assembly created committees last year on the subject, no visible progress has been made on establishing a government efficiency program. Instead of trying to reinvent the wheel, Missouri can look to states that have already achieved success reining in government and take similar actions that could save billions of Missouri taxpayer dollars.
Step One of Many
Rightsizing Missouri’s government will not be easy. It will require leadership from both the executive and legislative branches of Missouri’s government, a clear plan of attack for identifying inefficiencies, and a commitment to exercising fiscal restraint over several years while implementing the reforms necessary to permanently change the state’s fiscal trajectory. This much is clear: There is no longer time to delay. Missouri’s elected officials must start reducing government spending today if there’s any hope of securing our state’s financial future tomorrow.
Policy Recommendations
- Establish an executive branch-led government efficiency initiative to provide a comprehensive review of Missouri’s government practices.
- Enlist the help of private-sector leaders to help review government, rein in excess spending, and recommend reforms to improve efficiency while reducing waste.
- Set clear goals and timelines for the initiative, with commitment from elected officials to make the efficiency recommendations a reality.
