Bob Holden

In the 2000 election, Holden was expected to face a tough primary against Lieutenant Governor Roger B. Wilson.[14] But in March of 1998, Wilson declined a bid, mostly to spend more time with family, but also due to fundraising troubles against Holden.[15][16] Holden narrowly defeated Republican Congressman Jim Talent.

Holden was inaugurated as governor in January 2001. His inauguration was the most elaborate and expensive in state history. The ceremony cost $1 million, of which $125,000 was paid from state government funds.[17] Months after, there was still a remaining debt of $417,000.[18] Although Holden's inauguration ceremony received public financing equal to that of Missouri's previous two Governors, a perception that the inauguration was overly extravagant emerged and became a theme in opposition to his administration.[19]

Not long after his inauguration, Holden faced a challenge from the new legislature. In special elections held weeks after his inauguration, Republicans won control of the state senate.[20][21] However, in spite of this, Holden was able to get some legislative accomplishments. Later that year, when Holden called a special session, the legislature passed a bill, which created a new prescription drug benefit for seniors.[22][23] But the relationship would grow more troubled, with Holden at one point having three vetoes overridden in a year, the same number of vetoes among all Missouri governors post-Civil War.[24][25]

Holden was pro-gun, but due to some negative effects that he felt proposed legislation would have on Missouri gun owners, and due to the results of a 1999 referendum, he vetoed a concealed-carry bill passed by the Missouri General Assembly.[26][27] This was short-lived because his veto was overridden by both the Missouri House of Representatives and Senate and the concealed-carry bill passed into law in 2003.[28] Several Republican legislators who had initially voted against the bill, such as Michael Gibbons of Kirkwood, switched sides to override Holden's veto. [29][27]

Holden's biggest challenge arguably was the economy and spending. At various times during his administration, Holden made drastic cuts in the state's budget.[30][31] This included cuts, proposed and enacted, to Medicaid,[32] to education,[33] and to the state government.[34] Not helping matters, the state oversaw some 77,000 job losses in key industries due to the national recession.[35] Holden did generally favor greater spending on state elementary and secondary education, but faced problems with raising funds. and he called the state legislature back into session after they had recessed for the year to ask for more state funding for education via raising taxes on casinos, but they refused additional monies.[36]

Holden was a member of the National Governors Association and was elected chair of the Midwestern Governors’ Conference which led the Midwestern states’ efforts to stimulate the economy by focusing on education and research. He also chaired the Governor's Ethanol Coalition and represented fellow governors on the National Medicaid Reform Task Force.[37]

In March of 2003, Holden announced his bid for re-election in 2004.[38] He was challenged for the Democratic nomination for governor by a fellow Democrat, State Auditor Claire McCaskill, who had won the support of officials such as former Governor Roger B. Wilson.[39] McCaskill based her campaign on the broad-based disgruntlement with Holden that prompted even some Democrats to call him by the unflattering moniker "OTB" (One Term Bob).[40] However, Holden still had some support among the state establishment, and prominent backers in U.S. House Minority Leader Dick Gephardt and former U.S. Senator Thomas Eagleton.[35] After Holden's approval rating steadily dropped during the second half of his term, McCaskill defeated Holden in the Democratic primary, marking the first primary loss for a sitting governor in nearly two decades.

McCaskill lost the November 2 general election to Republican Secretary of State Matt Blunt. Holden's term ended on January 10, 2005.