Budget office outlines large supplemental: World Cup passthroughs, disaster reimbursements and rising special‑education costs
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Summary
State Budget Director Dan Hogg briefed the committee on House Bill 14, a broad FY26 supplemental that includes time‑sensitive passthroughs for KC2026 World Cup hosting, federal disaster funds to be distributed quickly, a $14 million FEMA counter‑UAS pass‑through and sizable increases for special‑education line items. Members requested follow‑up on program details and auditability.
State Budget Director Dan Hogg opened the supplemental briefing with a warning that several items are time‑sensitive and that the General Assembly should act quickly to allow Missouri to meet federal passthrough and distribution deadlines. He said the federal government indicated an amount of roughly $59.5 million tied to the World Cup host city organizing committee (KC2026) is expected and that, by federal rules, the state will have about 45 days to pass the funds to the organizing entity.
Hogg also described a $14 million federal award for counter‑unmanned aerial systems and related security support to be passed through to Kansas City and the Highway Patrol; he said the grant is administered through FEMA and carries specific training, reporting and accounting requirements. Mark James, director of the Missouri Department of Public Safety, told the committee the funds are intended for equipment that detects and can interdict hostile drone activity near large public venues and that the grant includes mandatory FBI‑led training for participating officers.
Committee members repeatedly pressed for a spend plan, accountability and whether interest on the funds could be retained in Missouri banking institutions. Hogg and DPS said federal grant rules are prescriptive and that budget staff would provide a coordinated packet of written follow‑ups with details on allowable uses, bank deposit questions and audit requirements.
On the education side, Hogg flagged large growth in special‑education costs and asked the Department of Elementary and Secondary Education (DESE) to examine drivers of rising per‑pupil costs. He said the average cost per high‑need student rose from about $50,481 in FY21 to $70,433 in FY25 and requested further departmental review of cost reporting and potential efficiencies; he also identified a requested $35 million supplemental for early childhood special education tied to a 1992 Supreme Court decision that requires state funding.
Other supplemental items discussed included additional Medicaid/DESE federal grants, Perkins and workforce grants, a veterans’ electronic health record replacement request ($2 million), security and utility cost increases for state‑owned facilities, and an item related to State Road Fund authority. Representatives asked for written documentation on the definitions and conditions attached to several federal grants, including the homeless students transportation grant and World Cup passthrough timing.
Budget staff committed to provide written responses and consolidated documentation to committee staff; members signaled interest in receiving detailed spend plans and banking/accounting clarifications before any final appropriation decisions. No floor vote was taken during the briefing portion of the session.