Millions at Stake for Schools as Budget Heads to Conference
The FY 2027 Missouri state budget is moving to a conference committee, where major differences between the House and Senate must be resolved—putting school funding at significant risk.
Missouri schools are already facing a $138 million shortfall this year due to lower-than-expected lottery and casino revenues, with an additional $190 million funding gap projected in the upcoming budget. Payments to districts are already being reduced.
The Senate version of the budget attempts to address this by allocating $118 million for the foundation formula and $15.2 million for transportation using one-time funds, but the final outcome depends on conference negotiations.
Property tax legislation is also a major concern. A House-modified bill (SB 1066) includes provisions that could:
Eliminate the minimum operating levy for schools
Change how tax measures are presented to voters
These changes could significantly reduce local school funding. Another bill, SB 1410, remains the key measure to watch.
HJR 173, a proposed constitutional amendment to phase out Missouri’s income tax, will go to voters. If approved, it could reshape state revenue and have long-term impacts on school funding.
The A-F school accountability bill (HB 2710) is nearing Senate debate. It would introduce a new letter-grade system for schools and tie funding to student performance outcomes. This system would be a bell curve; so even if you score enough to be an A school, the curve would determine your actual letter grade. So you could be an A school with a C letter grade.
Key takeaway: Schools face immediate and long-term financial uncertainty, and advocacy is being urged as legislative decisions in the coming weeks will directly impact district funding and operations.