Education (School Funding)

SB 1805 - Under this act, certain school districts shall no longer receive hold-harmless state aid payments or Small Schools Grant payments. Additionally, certain school districts shall have their foundation formula payments calculated using a new definition of the term "local effort" that is based on 2024 property values and local revenue from fiscal year 2025, rather than the 2004 property values and fiscal year 2005 revenue as provided under current law. The following school districts shall not receive hold-harmless state aid payments or Small Schools Grant payments: Northwestern, Keytesville, Blackwater, Cooper County, Otterville, Pilot Grove, and Higbee. (Subsection 1) The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Prairie Home, Brunswick, New Franklin, and Glasgow. Additionally, these school districts shall not receive state aid under hold harmless adjustments or the Small Schools Grant. (Subsection 2) The following school districts shall receive foundation formula payments calculated using a definition of the term "local effort" based on 2024 property values and fiscal year 2025 local revenue receipts, as provided in the act: Salisbury, Boonville, Fayette, and Westran. None of these school districts shall receive state aid under hold harmless adjustments. (Subsection 3) This act is identical to SB 1736 (2026). OLIVIA SHANNON

HB 2625 requires Missouri school districts to levy a minimum local property tax ("operating levy") of at least $1.25 per $100 of assessed property value to receive full state education funding. Districts failing to meet this threshold will receive state aid capped at their 2005-06 funding level per student, unless they qualify for exceptions (e.g., districts near nuclear plants or large power facilities). The bill links state aid eligibility directly to this local tax requirement, with rates increasing to $1.50 after 2026. It applies to all public school districts in Missouri, excluding specific utility-adjacent districts that may use a higher $2.75 levy limit. The law aims to ensure districts contribute locally before receiving full state funding.