While Jefferson City’s approximately 14,000 state employees don’t receive a cost-of-living adjustment in Missouri Governor Mike Kehoe’s (R) proposed budget, the governor says the time of service plan his administration put in place in 2025 remains in effect.

Governor Kehoe appeared live on 939 the Eagle’s “Wake Up Missouri” from the governor’s prayer breakfast in Jefferson City:
“We’ve given over 17 percent raises to state employees over the last several years, including the time (of service) raise that we put in place last year. So that stays in place so every time you hit another two-year milestone you’ll get an automatic raise,” he says.
Then-Governor Mike Parson (R) signed an 8.7 percent pay increase into law at Jefferson City’s Truman Building in 2023. Governor Kehoe also tells listeners that his proposed budget includes about $72-million for Missouri Consolidated Health Care to help state employees keep their health care premiums down.

Governor Kehoe also addressed his income tax plan during the live “Wake Up” interview with hosts Randy Tobler and Stephanie Bell. The governor says phasing out and eliminating Missouri’s individual income tax is necessary for the Show-Me State to compete with Florida, Texas and Tennessee:
“I want to give future State of the State speeches, I want future (Missouri) governors to give State of the State speeches saying we’re hitting it out of the park. We’re really doing well. We have to change up what we’re doing or we’re going to have the same old same old,” says Governor Kehoe.
The governor says the first step is gaining approval from Missourians this year at the ballot box. He’s calling for a phased elimination and full repeal within the next five years. Democrats say the GOP wants to shift the tax burden to working families.