As Missouri’s 2026 legislative session enters its final two weeks, two major issues dominate: the state budget and property tax legislation, both with significant implications for schools.
State Budget Concerns
Lawmakers must finalize the FY 2027 budget by May 8, but a major challenge is a projected$190 million shortfallin fully funding the school foundation formula. This comes on top of an existing$138 million revenue gapfrom lottery, casino, and tobacco funds that schools were counting on but did not receive.
The House budget continues relying on these uncertain revenues, while the Senate proposes replacing them with more stable funding sources. The core concern is whether appropriated funds for schools will actually materialize, not just appear on paper.
Property Tax Legislation (SB 1410):
The Senate passed a more moderate property tax bill focusing on:
Clearer ballot language so voters understand tax impacts
Changes to property assessments, including limits on reclassification and added transparency
Adjustments to tax levies, including new reporting and rollback rules
This contrasts sharply with the House version, which would eliminate the minimum operating levy for school districts, potentially allowing school funding to drop to zero—raising serious concerns for districts.
Other Key Education Bills to Watch:
A-F school accountability (HB 2710) – awaiting Senate debate
Literacy bill (HB 2872) – includes mandatory retention and intensive intervention requirements, posing challenges for small/rural schools
MSHSAA oversight (SB 863) – passed and heading to the Governor; creates an appeals commission
Additional bills on IEP consent, bullying policies, screen time, financial transparency, parents’ rights, and physical education mandates could still advance quickly before session ends
Bottom line:
The final days of the session will determine school funding stability, tax policy impacts, and several major education mandates—many of which could significantly affect rural and small districts.