State Budget Director Dan Haug apologized for a mistake in the proposed fiscal year 2027 budget ahead of a hearing Wednesday on this year’s $3.3 billion supplemental budget.

Haug announced Tuesday in the House that he had accidentally undercounted the expected general revenue surplus by $261 million. He apologized again today to the members of the Senate Appropriations Committee.

When Gov. Mike Kehoe’s budget was announced earlier this month, projections indicated that the state would only have $4.7 million in general revenue surplus at the end of the coming fiscal year.

Haug’s mistake has been corrected, updating the supplemental fund to $265.7 million. Haug said this correction shouldn’t be interpreted as an increase in revenue. Rather, the reserve is already allocated to other funds.

“We still have the same issues that this budget is taking the first step to address, but there will be additional steps needed to address that in the (fiscal year) 2028 and probably the (fiscal year) 29 budget,” Haug said.

During the hearing on the supplemental budget, Haug noted some of the higher-cost items. The supplemental budget provides mid-year funding for the current fiscal year’s budget, in this case fiscal year 2026, to cover the costs of unforeseen expenses.

The proposed supplemental budget includes an additional $86 million for disaster relief in St. Louis and a total of $37 million in funding for special education students’ transportation and education costs for the Department of Elementary and Secondary Education’s Office of Special Education.

Another of the proposals would provide $118 million in funding to Medicaid Home and Community Based Services. Department of Health and Senior Services Director Sarah Wilson said this funding would help an increasing number of seniors who may require at-home care. Missouri’s elderly population is going to outnumber its younger population by 2034, Wilson said.

“We do anticipate needing to provide these services on a larger scale,” Wilson said. “It is more cost-effective to try to keep people in their homes with the supports and services needed versus long-term care facilities.”

The supplemental budget also includes $132 million in federal and state funding as part of the Rural Health Transformation program, which gives grants to qualifying rural health care providers with the intent to stabilize health care in rural areas.

Haug recommended that lawmakers approve these funds by March 15, which would allow for a more immediate dispersal of funds for World Cup proceedings in Kansas City and federal disaster funds for St. Louis following a tornado in May 2025.