Here’s a concise summary of the update:
With two weeks until the Missouri General Assembly’s spring break and eleven weeks remaining in session, lawmakers are advancing major priorities, including property tax reform, open enrollment, and Gov. Mike Kehoe’s plan to replace the state income tax with a consumption tax. Budget pressures—estimated at $1–2 billion over the next two cycles—could complicate the session’s second half.
Property Tax Reform
Two House bills are moving forward:
HB 2780 (revised): Scaled back after lacking sufficient floor support, it removes several controversial provisions but still includes significant changes. Most notably, it lowers the minimum operating levy for certain foundation formula aid from $2.75 to $2.20 starting in 2026–27, raising concerns about long-term school funding impacts. It also changes levy calculations, valuation dispute procedures, and rules regarding voter-approved levy increases.
HB 2668: Considered a more sweeping reform measure, it includes many provisions removed from HB 2780. These include limiting when property tax proposals can appear on ballots, restricting ballot language, requiring levy reductions tied to tax abatements, and capping certain property tax credit increases. Opponents argue it significantly limits local control and threatens school and local government funding.
Open Enrollment (SB 971)
SB 971 is set for Senate debate. The proposal would allow students to transfer between districts, including to charter schools. Concerns center on funding losses for resident districts, fixed costs that remain despite enrollment declines, financial planning instability, and operational challenges tied to transportation and special education.
Income Tax Elimination Proposal
Gov. Kehoe’s plan to eliminate Missouri’s income tax and replace it with higher sales and use taxes is expected to advance in the House soon. The proposal, a key part of his agenda, would require a constitutional amendment and is reportedly nearing floor consideration.
Overall, major education and tax policy decisions remain unresolved as the legislature approaches its mid-session break.