As we ready for the fights to defend public education funding forward, this newsletter has some grounding to help you make meaning of what we're up against as well as opportunities for what you can do next.

School Funding 101

Knowing how schools get their funds and how those funds are used is important information for making sure your kids are getting what they need. Taxes from three levels of government fund our schools—local, state, and federal.

Federal taxes fund only specific programs—schools with high populations of students with low-income families, students with disabilities, or other special needs. For many districts, this federal revenue is a smaller portion of their funding, accounting for only 13.8% of Missouri district budgets on average.

Missouri relies heavily on local funding, which typically accounts for well over half of school budgets. While some local funds can come from sales or use taxes, the bulk of those dollars come from your property taxes—the taxes paid on your home or land. The total local taxes collected by a school district is called “local effort” and determines how much the state will provide. 

The state uses ‘local effort” as part of a formula, or equation, to calculate its portion. One of the most important pieces of the formula is the “State Adequacy Target,” or the target cost to adequately educate one learner. In Missouri, that number is currently $7,145 per student, though it is lowered at times when lawmakers choose not to fully fund the formula in their annual budget. This has happened more than half the time in the last 20 years. On average, the state funds approximately 33% of school budgets, making us 49th in the nation for per-pupil state funding. It’s important to note that the portion of each district's state funding swings widely across districts, ranging from 1% in one to 50% or more in others. 

Missouri ranks 49th in the nation for state funding per student.

Other variables are included in the formula, too, including the number of students and the average wage rates in the district’s county. Unfortunately, some portions of the formula drive wide gaps in per-student funding. For example, a few districts whose property values are high fund their students at more than $20K/student. Meanwhile, many districts fund their students between $10-15K. Some end up with funding levels even lower.

There are a few reasons for these wide gaps. First, placing the heaviest portion of funding on local effort means kids in wealthy areas receive more. Second, the wage rate calculation adjusts the formula higher for areas with higher wages—often the same areas where property values are high and students are receiving high levels of funds. Finally, while some measures of the formula are designed to adjust each year, Missouri’s foundation formula—and some factors driving gaps in per-student funding—date back to 2005! The outdated measures mean that even when property values in some areas grow higher, the state still provides the same funding these districts received in 2005. While this isn’t true for all districts, it is a pain point in current calculations. 

This year, the governor has ordered a task force to write recommendations for a new state formula. 

A New State Formula—and Why Missouri Kids Need Your Voice at the Table

A new task force, formed last summer, is now considering two options that could create more even funding across districts, but ultimately the decision rests with the General Assembly and Governor Kehoe. Lawmakers will vote to either adopt or reject the formula, and the governor will then sign that bill or use his veto powers to keep it from becoming law.

Parents for Missouri Public Schools invites you to attend these task force meetings in person where possible or to listen in if you aren’t able to travel. The dates are shown below:

September 14th

October 19th

November 16th

We also encourage you to begin conversations with your local lawmakers, who have heavy influence on school funding decisions. Come to one of our virtual training sessions for tips on how to have these conversations, and prepare with us for the coming legislative session.

Better yet, register for an in-person training in a city near you to meet other parents and begin building power together!