Jay Ashcroft Proposes Major Financial Reorganization

Missouri Secretary of State Jay Ashcroft has unveiled plans for a massive reorganization of the state’s financial structure, aiming to eliminate the income tax by reallocating funds from areas like transportation and conservation to general revenue.

Why it matters: If implemented, this would be the biggest overhaul of Missouri’s finances in the state’s history, requiring significant legislative efforts and potentially one or more statewide votes.

The details:

• Ashcroft argues that the government is overextending itself and many functions could be streamlined.
• He wants to shift more money from earmarked sources into the general revenue fund.
• The plan includes pushing funds from budgets for conservation, state parks, education, and road maintenance into general revenue.
• Ashcroft advocates abolishing the state income tax and repealing the 2021 gas tax increase.

Ashcroft is currently competing in a three-way battle for the GOP nomination for governor against Lt. Gov. Mike Kehoe and state Sen. Bill Eigel.

What they’re saying:

• “We made Missouri one of the leading states in ensuring that only legally eligible voters participate in our elections,” Ashcroft said, highlighting his commitment to voter integrity as Secretary of State.
• Ashcroft criticized the Republican-led state government for not delivering conservative results, noting the increase in state spending from $28 billion to $51 billion over five years.
• “This is not the government’s money; it’s the people’s money,” he asserted, promising to deliver services rather than expand government programs.

The other side: Critics have raised concerns about the potential concentration of power and the risk of disrupting existing systems that are currently functioning well.

What’s next: The path forward for Ashcroft’s proposals will require substantial legislative cooperation and statewide voter approval. The primary election for governor is scheduled for August 6, 2024.

Full story

Jay Ashcroft has revealed plans for a major reorganization of Missouri’s financial structure. He proposes to eliminate the income tax by reallocating funds currently dedicated to areas such as transportation and conservation to general revenue. This ambitious overhaul would require significant legislative efforts and one or more statewide votes.

“We need to cut spending and retool the state tax system, shifting more money from earmarked sources into the general revenue fund,” Ashcroft said. He argues that the government is overextending itself and that many of its functions could be streamlined. Ashcroft, who currently serves as Secretary of State, is now running for governor.

He is competing in a three-way battle for the GOP nomination against Lt. Gov. Mike Kehoe and state Sen. Bill Eigel.

Ashcroft hopes voters will appreciate his efforts to advance a conservative agenda. As governor, Ashcroft envisions significant changes in budget and tax management. He advocates the abolition of the state income tax and the repeal of the 2021 gas tax increase.

The plan is to replace lost revenue by reorganizing budget allocations. This would involve pushing more funds from earmarked budgets, such as conservation, state parks, education, and road maintenance, into general revenue. Ashcroft’s strategy includes a “glide path” elimination of income tax through budget cuts and reallocation, though he has not provided details on specific cuts.

His crime strategy involves bolstering police forces and mental health services, with state support for hiring 1,000 new officers, filling local agency gaps, and increasing the Missouri State Highway Patrol to its full strength.

ashcroft’s financial overhaul plan

The path forward for Ashcroft’s proposals will require substantial legislative cooperation and statewide voter approval.

If implemented, it would mark the largest financial reorganization in Missouri’s history. In a recent speech, Ashcroft criticized the Republican-led state government for not delivering conservative results. He noted that state spending has increased from $28 billion to $51 billion over five years.

Ashcroft pledged to make Missouri a model of conservative leadership, advocating for a reform agenda called the “Red Print.”

Ashcroft’s plans include hiring 1,000 new police officers in his first year to address crime in cities like St. Louis and Kansas City. He also aims to phase out the state income tax, contending that it disincentivizes productivity.

Ashcroft plans to repeal the 12.5-cent gas tax increase from 2021, arguing that existing revenues are sufficient for infrastructure investments. On education, Ashcroft advocates for funding students instead of systems and giving parents control over their children’s education. He promotes educational freedom and aims to provide more choices to Missouri families.

Fiscal responsibility is another key focus for Ashcroft. He plans to use zero-based budgeting to ensure every taxpayer dollar is justified. “This is not the government’s money; it’s the people’s money,” he asserted, promising to deliver services rather than expand government programs.

The proposed financial reforms are seen as a response to the heightened need for fiscal prudence and innovation in state governance. If approved, the reorganization plan would require sweeping legislative changes and could set a precedent for other states facing similar financial management challenges. As Missouri prepares for the upcoming gubernatorial primary, Ashcroft’s financial reorganization proposal is likely to be a significant talking point among candidates and voters.

The primary election is scheduled for August 6, 2024.