Missouri Amendment 7 Would Create Fund Aimed at Ending State Taxes
Missouri voters will decide next month whether to add a permanent public endowment fund to the state constitution, with the eventual goal of generating enough investment earnings to eliminate state taxes. Republican state Sen. Adam Schnelting said an initial $250 million investment could grow over 125 years to cover state expenses. The proposal is separate from Amendment 5, which voters rejected in August and which would have given lawmakers more power to move away from an income tax.
Missouri voters will decide next month whether to add a lasting state endowment to the constitution. Amendment 7 aims to eventually cover government costs without state taxes. It would receive general revenue appropriations and private gifts. Republican Sen. Adam Schnelting championed it.
Schnelting's legislative staff projected that $250 million could compound over 125 years to cover state expenses. The measure differs from Amendment 5, which voters rejected in August and which would have let lawmakers move away from income taxes. Unlike Alaska's oil-funded fund or Texas's school fund, Missouri's would rely on appropriated tax money.
If enacted, Amendment 7 could shift some budget debate toward long-term savings, but setting aside money now may reduce funds available for current services, especially as the state faces revenue shortfalls. Future Missourians might benefit from compounded returns, while present residents could see trade-offs in spending priorities. The measure's effect would depend on future legislative appropriations and economic returns.