Oct 30, 2025
Since members of the Missouri General Assembly adjourned in mid-May, several activities have continued or have emerged that will have future implications on various essential statewide activities.
Missouri Department of Elementary and Secondary Education (DESE)
DESE and the State Board of Education have been focusing in recent months on key issues to promote in the 2026 session of the General Assembly. Among those are full funding of the Foundation Formula, the state’s primary public school funding mechanism. Other issues include modernizing the state’s school funding model and implementing a new, more flexible assessment system.
DESE is working to adhere to federal requirements for paying child care subsidies based on authorized enrollment.
Some school districts may lose significant federal funding from certain grant programs, an amount that could total $64 million.
Teacher recruitment and retention are important topics, and DESE is focused on addressing teacher shortages in subjects like math, science, and elementary education. It was noted that teachers in identified shortage areas are eligible for federal loan forgiveness programs.
DESE is seeking federal authority to implement the “Success-Ready Student Assessment,” a new assessment system that uses a through-course model with multiple assessment occasions throughout the year. Also, the state’s school accountability system (MSIP 6) is set to be fully implemented, although districts’ accreditation status cannot be lowered based on the new scores until 2026.
Other key issues focused on by DESE are elementary literacy programs and hiring literacy coaches; improving early childhood special education and supporting quality initiatives for child care; the current state education budget that includes $50 million for school choice initiatives, which will be a continued point of discussion and implementation; and legislative changes in 2025 that will likely impact the 2026 school year related to teacher pay and accountability.
Missouri School Funding Modernization Task Force
The task force has been meeting and is expected to continue to meet throughout 2026. The group was established by an executive order of Governor Mike Kehoe (R) to review and recommend changes to the state’s K-12 public and charter school funding model.
Chaired by Sen. Rusty Black (R-Chillicothe), the task force will submit a final report with recommendations to the Governor by Dec. 1, 2026, aiming to create a more equitable, sustainable, and effective funding structure for schools, while considering modern options like virtual learning.
The task force is working to update the Foundation Formula for education, which has not seen significant changes since 2005. The new model should ensure all students have equal opportunities regardless of their geographic location or socio-economic status. Recommendations should be based on realistic state and local revenue forecasts, and the new structure should include performance-based incentives for schools and educational outcomes. The task force is looking at support of all options, including support for non-traditional public schools like charter schools and virtual learning.
The task force is debating a potential shift from attendance-based funding to enrollment-based funding, which could be more equitable for high-poverty districts. A “hold-harmless” provision in the current formula, which keeps funding flat for some districts, is being examined for its cost and impact on equity.
Also, the task force is addressing the formula’s reliance on local property tax revenue, which can create inequities between districts.
The task force is using work groups to develop recommendations, which will be presented for public feedback in the fall of 2026 before the final report is submitted. Any potential changes to the Foundation Formula would require action and approval by the General Assembly and would likely not be implemented until the 2027-28 school year at the earliest.
Empowerment Scholarship Accounts (ESA) Program
Missouri’s state budget for Fiscal Year 2026 includes a $50 million allocation to expand the Empowerment Scholarship Accounts Program, also known as MOScholars, which provides scholarships for students to attend private schools.
This marks the first time state general revenue funds will directly support the program, which has previously been funded by private donations. Governor Kehoe signed the budget, which includes the funding as part of the state’s overall education spending.
The $50 million is expected to more than double the number of scholarships available, allowing more families to use the funds for tuition at private or parochial schools. Proponents, like the Governor and the American Federation for Children, argue that this provides families with more educational choices. Critics, including the Missouri National Education Association, contend the funding diverts money from public schools.
State Tax Commission and the Current Property Tax Assessment System
In Missouri, the State Tax Commission’s equalization process updates county property tax assessments to ensure they are uniform, impacting how local revenue is calculated for the state’s K-12 funding formula. The current system, relying on 20-year-old assessment data, is widely acknowledged as outdated and is currently under review by the special Missouri School Funding Modernization Task Force created by the Governor
One of the goals of the task force is to unfreeze property values to ensure the formula remains accurate over time.
Missouri’s school funding formula is determined by a combination of state aid and local property taxes, and the equalization process is a critical part of the equation. Each county assessor is responsible for determining the market value of properties every odd-numbered year. The values are equalized by county boards and reviewed by the State Tax Commission to ensure fairness across the state.
Based on these assessments, local communities collect property taxes. Missouri is heavily reliant on local property taxes for school funding more than almost any other state.
The state’s funding formula uses an outdated figure – the assessed property values from the 2004-2005 school year – to calculate the local contribution for each district. This figure is then combined with an assumed tax rate known as the “performance levy” ($3.43 per $100 assessed value).
Because the formula uses decades-old data, districts with stagnating property values are shortchanged, while districts with booming property values appear “property-rich” in state calculations and receive less state aid.
The significant differences in reassessment rates and market value changes across the state have made the formula inaccurate and inequitable.
The outdated equalization process creates significant inequities in how K-12 schools are funded, resulting in major disparities between districts. The flawed process leads to less state funding for school districts that have higher current property values, even though those districts may have other educational needs.
Some school districts with lower property tax bases or lower tax rates struggle to generate sufficient local revenue, and the state aid they receive is insufficient to make up the difference due to the outdated formula. A study also found an inequity of funding per student based on race and location in some districts, partly due to disparities in local funding.
Legislative and Administrative Actions
In addition to the task force, other efforts are underway to address property tax issues that could impact school funding. Senate Bill 3, passed in 2025, allows voters in some counties to freeze or cap their property tax revenues. School districts are concerned this could significantly impact their operational funding, and some have challenged the law.
The State Tax Commission is also pushing to increase residential assessments to better reflect current market conditions, which could have an impact on the funding formula.
Missouri’s next General Assembly regular session will convene on Jan. 7, 2026.