Representative Matthew Overcast's Capitol Report

Greetings Friends of the 155th District!

 

Happy New Year! I hope you had a wonderful 2025 and are looking forward to an even better year ahead in 2026. Thank you for the privilege of serving as your State Representative for the 155th District.

The 2026 legislative session has officially begun, and with greater experience and clarity, I am eager to get to work on behalf of our district. We are starting the year strong by hosting several advocacy days at the Missouri State Capitol to engage constituents and stakeholders on important policy issues.

 

On January 20, 2026, my office will host an advocacy day in Jefferson City for individuals affected by Alpha-Gal Syndrome. We invite anyone interested in learning more about AGS to join us from 9:00 a.m. to 10:30 a.m.

 

On January 21, 2026, my office will host a second advocacy day in Jefferson City from 9:00 a.m. to 12:00 p.m. focused on Advanced Practice Registered Nurses (APRN). During this event, I will discuss House Bills 1635 and 1636 and what these proposals mean for APRNs across our state.

 

We look forward to welcoming constituents from the 155th District and surrounding counties to these advocacy days. If you have any questions or would like additional information, please do not hesitate to contact my office.

 

Missouri Legislature Convenes for 2026 Session

 

The Missouri General Assembly convened Wednesday in Jefferson City for the start of the 2026 Regular Session, beginning the second regular session of the 103rd General Assembly. Under the Missouri Constitution, lawmakers meet on the first Wednesday after the first Monday in January, launching a legislative calendar that runs through mid-May, with a veto session scheduled for September.

Opening day was largely procedural, with members sworn in, leadership outlining expectations, and committees beginning to organize. Even before the gavel fell, nearly 1,200 bills had been pre-filed in the House, signaling an active legislative year ahead. Lawmakers are expected to take up a wide range of issues, including the state budget, economic development, public safety, health care, infrastructure, and education.

 

The 2026 session unfolds during an election year and follows a contentious 2025 session marked by high-profile fights over abortion policy and redistricting. Those disputes have raised questions about how smoothly the Senate will function in the opening weeks. While House leaders say they expect business to proceed as usual, the overall pace of the session may depend on how long tensions in the Senate persist.

 

Budget issues are expected to dominate early discussions. The General Assembly’s only constitutionally mandated responsibility is to pass a balanced budget, but lawmakers face a shrinking surplus, declining revenues, and competing policy priorities. Governor Mike Kehoe is expected to deliver his State of the State address next week, outlining a budget proposal aimed at aligning spending with current revenue and detailing his plan to begin eliminating Missouri’s income tax. With the income tax providing a significant share of state revenue, legislators in both parties are closely watching for details on potential replacement funding.

 

Other issues likely to surface early include addressing the backlog of individuals awaiting court-ordered mental health treatment, proposals to improve maternal health outcomes, and legislation reflecting the priorities of term-limited lawmakers.

 

The election-year environment adds another layer of complexity. Several ballot measures are expected to drive voter turnout this fall, including proposals related to abortion policy, constitutional amendment procedures, and congressional redistricting. Although Republicans maintain strong majorities in both chambers, voter engagement could influence legislative strategy as members look toward November.

As committees organize and hearings begin, lawmakers will move quickly from ceremony to substance, navigating fiscal pressures, policy debates, and political dynamics that will shape the tone of the 2026 legislative session. 

 

Governor and Budget Leaders Announce FY 2027 Revenue Estimate

 

Governor Mike Kehoe, Senate Appropriations Chairman Rusty Black, and House Budget Chairman Dirk Deaton announced Missouri’s Consensus Revenue Estimate (CRE) for Fiscal Year 2027. The CRE, developed with input from state budget experts and economists, serves as a key benchmark for building a balanced state budget.

 

Net general revenue collections for FY2027 are projected at $13.65 billion, a 3.8% increase over the estimated revenue for FY2026. The current fiscal year is expected to see net revenue of $13.15 billion, a 2.1% decline from FY2025.

 

Governor Kehoe emphasized that while Missouri’s economy remains strong, spending pressures, not revenues, present the primary challenge for the upcoming budget. He pledged a responsible, fiscally disciplined budget with a long-term vision for growth.

 

Senator Black highlighted the importance of the CRE in guiding the Senate’s budget review, while Chairman Deaton noted the House’s commitment to delivering a sustainable budget that balances critical programs with fiscal responsibility.

 

State Auditor and Budget Leaders Warn of Future Fiscal Challenges

 

State Auditor Scott Fitzpatrick released a recent report warning that Missouri’s general revenue surplus could be depleted by mid-2028 if current spending trends continue. While the state previously held a record surplus, ongoing general revenue spending has outpaced revenue collections in recent years, requiring the use of reserves to balance the budget.

 

Fitzpatrick emphasized that slowing revenue growth, declining federal funding, and rising costs for education, health care, mental health services, and state employee pay are creating long-term pressure on the state budget. The report also notes that an economic downturn could accelerate the depletion of the surplus.

 

House Budget Committee Chairman Dirk Deaton said the auditor’s findings confirm concerns he has raised over the past year about the state’s long-term fiscal condition. Deaton pointed to the risk of a structural deficit when ongoing spending exceeds annual revenue collections and stressed the importance of addressing the issue through careful, disciplined budgeting.

 

As lawmakers prepare for the next budget cycle, both the auditor and legislative leaders have signaled that difficult decisions may be necessary to maintain Missouri’s fiscal stability and avoid more severe budget challenges in the years ahead.

 

Missouri Minimum Wage to Increase to $15 in 2026

 

Beginning January 1, 2026, Missouri’s minimum wage will increase from $13.75 to $15 per hour for most non-exempt employees, marking one of the largest single-year increases in recent state history. The change follows legislation signed by Governor Mike Kehoe in 2025 that also modified statewide earned paid sick leave and removed automatic inflation adjustments scheduled for 2027.

 

Certain employers, including those in retail and service industries with annual gross income under $500,000, remain exempt and may set wages at their discretion. The increase brings Missouri well above the federal minimum wage of $7.25 and aligns the state with neighboring states such as South Dakota, Nebraska, and Arkansas.

 

Economic analysts note that higher minimum wages can help workers keep pace with rising costs for rent, groceries, and childcare, while also benefiting employers by reducing turnover and supporting workforce stability.

 

Missouri Awarded $216 Million to Strengthen Rural Healthcare

 

Governor Mike Kehoe announced Missouri has secured more than $216 million in first-year funding through the federal Rural Health Transformation Program, placing the state among the top ten nationally. The competitive award will support efforts to expand access to care, improve health outcomes, and promote long-term sustainability in rural communities.

 

The funding will be administered through the MO HealthNet Division and focuses on locally driven solutions that strengthen hospitals, clinics, and community-based providers while improving care coordination and addressing longstanding rural health disparities. State officials emphasized the collaborative approach behind Missouri’s plan, which involved multiple state agencies and healthcare partners.

Governor Kehoe said the investment represents a significant opportunity to modernize rural healthcare delivery and ensure Missouri communities are better positioned to meet future needs.

If you ever have, any questions or concerns feel free to call me at 573-751-2042 or email me at Matthew.Overcast@house.mo.gov.  Our office is always here for you.