This story was updated at 6:40 p.m. April 1, 2020, with more details.
Missouri Gov. Mike Parson and the state's budget director announced Wednesday a $180 million spending restriction in the state's budget due to the COVID-19 pandemic will affect at least five state departments.
As of Wednesday afternoon, there had been 1,581 reported cases in Missouri of the novel coronavirus (COVID-19), according to the state's Department of Health and Senior Services.
DHSS added 18 people had died from the disease.
The pandemic is expected to create an economic decline in the state due to interrupted jobs, businesses and lifestyles.
The state is "expecting significant revenue declines," perhaps some larger than those seen during the Great Recession, Parson said.
More precisely, between now and the end of June (the end of the current fiscal year), there will be an estimated $500 million shortfall in the state's budget, he said.
"We are hopeful we may be able to use an additional $315 million in federal funding this year to help with the shortfall," Parson said. But that would not be enough, and so the state plans to restrict $180 million in spending, he added.
That $180 million spending freeze will affect Missouri departments, including the departments of Higher Education and Workforce Development, Transportation, Natural Resources, Economic Development and the Office of Administration.
Parson's office later provided a more detailed summary of how spending restrictions will affect each department, with the state's colleges and universities to take the biggest hit:
Higher Education and Workforce Development: Four-year higher education institutions in the state are planned to have more than $61.3 million frozen. The University of Missouri system would lose more than $2.5 million further, mostly for a "Precision Medicine Initiative."
Community colleges in the state would lose more than $11.6 million. State Technical College of Missouri, a two-year school, would lose more than $487,000.
Other restrictions within the department would also include $5 million for the Fast-Track Workforce Incentive Grant Fund, which is a program to get more adults to earn post-high school degrees, something Parson had championed.
MoDOT: More than $1.1 million for "Port Authority Capital Improvements" would be restricted. Capital improvements for ports had been something Parson listed as a budget priority at the start of the year.
OA: More than $7.1 million for the Missouri Consolidated Health Care Plan would be restricted.
Natural Resources: More than $12.5 million of restrictions would mostly impact DNR's Multipurpose Water Resource Program, but a hazardous waste and a mined land reclamation program would also be affected.
The Multipurpose Water Resources Program funds the planning, design, construction or renovation of public water supplies, flood control storage, drought mitigation, public water supply treatment or transmission facilities projects. It also had been listed as a budget priority at the start of the year by Parson.
Economic Development: DED would have more than $13.1 million frozen, including almost $6.5 million for the Missouri Division of Tourism, more than $3.3 million for the Missouri One Start Job Development Program and $2.9 million for the Missouri Technology Corporation.
Also noted is more than $54 million in restrictions on facilities maintenance funds for the state.
"In the future, we may have to restrict even more, depending upon how extreme the economic impacts of COVID-19 become," Parson said.
He noted the Department of Elementary and Secondary Education: "We will continue to work with our schools, higher education institutions and congressional delegation to identify additional federal funding to help with any shortfalls we experience."
Parson added of the current planned restrictions, "The judiciary and the secretary of state have worked to identify savings in their own budgets."
The Secretary of State's Office would restrict $1 million for elections costs.
The Judiciary would restrict almost $3 million for treatment courts, as well as approximately $475,000 for judicial education and training.
"We are being proactive in restricting $180 million," said Dan Haug, director of OA's Division of Budget and Planning.
"We need to be able to do that right now, so that we have cash available to buy the needed supplies to fight COVID-19 - things like personal protective equipment, ventilators and other necessary supplies," Haug said.
He said the state many times has to pay up front for those things, so it has to make sure the general revenue is available to do that, even if the purchases will later be reimbursed by the federal government.
Parson said the $18 million order the state made a little more than a week ago for personal protective equipment, or PPE, would now cost more than $30 million because of demand: "Every day, that's what we're struggling with" to address the PPE shortage during the pandemic.
"This is going to be a multi-year issue that we're going to have to deal with, and we will," Haug said of the effect of the pandemic on the state's budget.
He said budget issues will persist into the 2021 fiscal year, which ends June 30, 2021, and "maybe even a little bit longer than that."
He added, "We will put a plan in place to make sure we have a balanced budget that delivers the essential services all Missourians need."
Parson said the state would continue to reach out to the White House and Congress for more federal funding.
Within Missouri's own Legislature, lawmakers and staff said Wednesday the plan is to return to the State Capitol next week to pass the supplemental budget that will allow the state to spend federal stimulus funding prompted by the pandemic.
Minority Floor Leader Sen. John Rizzo, D-Independence, tweeted the Senate's Appropriations Committee would meet April 7 to hear and pass the supplemental budget and a bill that would extend by a year reimbursement allowance taxes for certain medical facilities: ground ambulance, nursing, Medicaid-managed care, hospital, pharmacy and intermediate care for the intellectually-disabled.
Rizzo added the Senate would take up both bills April 8, and he expected the bills would pass with bipartisan support.
The supplemental budget would then go to the House for a final vote.
In the House, Rep. Rudy Veit, R-Wardsville, told the News Tribune the procedure will be for each member to be called individually to come from their office to the chamber to vote - minimizing contact that could spread infection of COVID-19.
"My understanding is that leadership from both parties are working together to ensure all those who want to speak on the bill are able to do so. The goal will be to maintain proper social distancing at all times, which will involve calling members up individually when they want to speak or inquire," House Communications Director Trevor Fox said.
It's not yet clear when lawmakers may conduct business on the state's regular budget.
News Tribune reporter Joe Gamm contributed to this report.
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