Missouri School Funding Update: What It Means for Our Schools
Missouri lawmakers are currently finalizing the state budget for the 2026–27 school year, and there are some important funding concerns that could directly impact local schools.
1. School Funding May Be Short by Hundreds of Millions
The state budget relies on money from lottery sales, casino gaming, and cigarette taxes to help fund schools. However, these revenues are being overestimated.
This year alone, about $139 million in expected funding may not come in.
Next year, schools already need an additional $190 million just to keep up with costs.
If the state continues to rely on overestimated revenue, the total shortfall could grow to:
$308 million for school funding
$478 million total when including transportation
In simple terms: even if funding looks “flat,” schools could actually experience it as a cut.
2. $190 Million for Schools Is Sitting Unused
There is currently about $190 million in Prop C (sales tax) funding that has already been collected for education—but is not being distributed to schools.
The current budget proposal leaves this money unused.
If allocated, it could help reduce funding gaps for districts across Missouri.
3. Why This Matters
If these issues are not addressed:
Schools across Missouri could face nearly half a billion dollars in reduced support
This may impact staffing, programs, transportation, and student opportunities—especially in smaller and rural districts
4. Looking Ahead: Income Tax Proposal
Lawmakers are also considering a proposal that could eventually eliminate Missouri’s state income tax.
This tax is a major source of funding for public education
While the plan includes safeguards, there is no guarantee that school funding would be protected long-term if state revenues decline