Why It Matters
The Missouri School Funding Modernization Task Force is preparing to deliver its final recommendations to Governor Mike Kehoe, outlining a comprehensive overhaul of the state’s public school finance system. The proposed changes carry significant fiscal implications, with full implementation projected to increase formula costs by more than $600 million.
What Happened
After 15 months of deliberations facilitated by former state finance chief Kari Monsees, the task force is nearing the completion of its work. A draft plan is scheduled for review on October 19, with only two meetings remaining before the final report is due to the governor in December.
The group has focused heavily on dismantling “hold-harmless” provisions that guarantee districts receive at least as much funding as they did during the 2004-05 school year. These protections currently cost the state $150 million annually. Monsees recommended phasing out these guarantees over a 20-year period, while State Rep. Ed Lewis suggested a shorter 10-year phaseout.
The task force also aims to address disparities in the small-schools grant program, which distributes $30 million to districts with 350 or fewer students. Districts with daily attendance of 351 or more receive no such aid, creating what officials describe as a “funding cliff.” The proposed formula would incorporate a weighting factor to smooth this transition.
“Our whole goal is to get to a modern formula,” said Kerry Casey, a member of the State Board of Education. The current funding model was last overhauled in 2005, and lawmakers previously refused to fund a $190 million increase tied to a 2024 law tweak during this year’s legislative session.
By the Numbers
$600 million — Estimated cost increase if all recommendations become law
15 months — Duration of task force meetings
Oct. 19 — Date for review of draft plan
December — Due date for report to Gov. Mike Kehoe
$150 million — Annual cost of current hold-harmless protections
20 years — Monsees’ recommended phaseout period for hold-harmless provisions
10 years — Ed Lewis’ recommended phaseout period for hold-harmless provisions
$30 million — Amount distributed by the small-schools grant program
350 students — Threshold for guaranteed per-pupil funding and small-schools grant eligibility
351 students — Attendance number at which districts receive no small-schools grant
$190 million — Amount lawmakers refused to fund from a 2024 law tweak
Zoom Out
Missouri’s effort to modernize school funding mirrors broader national trends where states are grappling with outdated finance formulas that fail to account for current educational needs. Many states rely on baseline years from the early 2000s, creating inequities as student populations and costs shift. The debate over phasing out hold-harmless provisions reflects a common tension between fiscal responsibility and protecting districts from sudden revenue drops.
The task force’s approach aligns with recommendations from education nonprofits like Aligned, which advocate for weighted student funding models that direct resources based on student needs rather than historical spending patterns. Similar reforms have been attempted in other Midwestern states, often facing political resistance due to the high upfront costs of transitioning away from legacy funding structures.
What’s Next
Impact simulations for individual districts will be published around the October meeting, providing lawmakers and school officials with data on how the proposed changes would affect their budgets. The final report is due to Governor Kehoe in December, after which the proposal will likely move to the state legislature for consideration.
“Nobody wants to sign off on their districts getting less money,” Monsees noted, highlighting the political challenges ahead. Lawmakers will need to weigh the long-term benefits of a modernized formula against the immediate fiscal impact, particularly given previous resistance to funding increases in the current legislative session.