Head Start facing elimination after 60 years

Missouri Governor Mike Kehoe said this week he would consider using state surplus funds to keep Head Start going if Congress approves discretionary spending cuts for the U.S. Department of Health and Human Services (HHS) proposed by the Trump Administration. His comments follow a leaked draft of the federal budget proposing zeroing out Head Start funding, one of the nation's longest-standing anti-poverty programs, which has received bi-partisan support for 60 years. 

President Lyndon B. Johnson established the program in 1965 as part of his administration's "War on Poverty". The program promotes school readiness and overall well-being from birth to age five, serving children and families living at or below the federal poverty line, including pregnant women. Head Start is not just an education program; it's a comprehensive system that includes health screenings, nutrition, mental health services, and family support. Early Head Start serves infants, toddlers, and pregnant women.  

Head Start is a "federal-to-local" program, which means the funds flow directly to communities. The program does not mandate a curriculum but instead allows for locally-driven decisions. For example, Central Missouri Community Action administers the Head Start program across 10 counties in mid-Missouri. The agency also assists families with housing, financial planning, and employment services and works to eradicate the causes and conditions of poverty. 

The Office of Head Start, housed within the HHS, oversees $12.2 billion annually. It serves over 778,000 children, making it the most extensive early childhood program in the United States and the most significant investment in dedicated early childhood education.  

In FY24, Missouri received $208.5 million for 13,278 seats, and Kansas received $87 million for 6,267 seats. Nearly half of all funded slots are in rural districts, and in many instances, Head Start is the hub and often the only access point for early childhood services like child care.  

What is behind the push to cut funding? 

The administration's plan appears tied to a broader effort to reduce federal programs and shift control to states. Cutting Head Start could also help pay for tax reductions. Some critics, such as those cited in Brookings Institution analyses, claim the program is outdated or ineffective—but those views are based on old data and miss what newer research has shown. 

More recent studies link Head Start to gains in kindergarten readiness, physical health, and social development. It also helps parents stay in the workforce or return to school, especially in rural areas with few other options. Child care shortages already plague both states. Eliminating Head Start would force more families into unlicensed care or out of the workforce altogether. No other program offers its combination of education, health, and family services. 

In a recent interview, Dr. Deborah Bergeron, who led the Office of Head Start during Trump's first term, expressed concern at the proposed cuts. "Head Start would preserve millions and millions of people in this country in terms of their opportunity to achieve the American Dream," she said. 

While the Trump Administration's budget proposal would eliminate funding for Head Start, that action requires Congressional approval. The current appropriation chairs in the Senate and the House have gone on record with strong support for Head Start.  

The Missouri Head Start Association published this video to celebrate the programs 60th anniversary. 

Aligned's Torree Pederson chats with Governor Mike Kehoe at the Missouri Governor's Mansion earlier this month.

Missouri Update

A look at the Governor’s first 100 days

Governor Mike Kehoe reached the 100-day mark in office this week, reflecting a period of early activity focused on public safety, education, workforce development, and government operations. 

Since taking office on January 13, the Kehoe administration has launched several initiatives and taken executive action to advance its stated priorities. These include the creation of a School Funding Modernization Task Force; however, the governor has yet to name all members. He also announced the Workforce of the Future Challenge, and the Safer Missouri initiative. The administration has also led state response efforts following severe weather events. 

Key legislative actions include signing HB 495, which expands law enforcement tools and establishes a citizen board for oversight of the St. Louis Metropolitan Police Department. SB 4, also signed into law, focuses on energy reliability and economic development. The governor also approved the FY 2025 supplemental budget billl, which provides continued funding for state operations and additional support for education, law enforcement, and services for individuals with special needs. 

In addition, Governor Kehoe has made nearly 100 appointments to state boards, commissions, judicial vacancies, and county offices including four new members of the State Board of Education. However, yesterday he pulled the nomination of Thomas Prater of Springfield after reports emerged that opposition was mounting from some Republican senators. 

Survey suggests 71% of Missouri teachers considered leaving profession

A new survey by the Missouri State Teachers Association (MSTA) found that 71% of Missouri educators seriously considered leaving the profession in the past year. While that percentage has held steady in recent years, the level of stress continues to rise. Top concerns include student behavior, burnout, low pay, and workload. Despite the challenges, many educators say they stay because of their commitment to students and the support they find in their school communities. 

As part of its survey, MSTA asked teachers to weigh in on what might help. Financial incentives—like scholarships, loan forgiveness, and better benefits—ranked higher than promotional campaigns or certification changes. Four-day school weeks and access to child care were also noted as meaningful supports. 

In response, lawmakers are considering HB 607, which would expand Missouri’s Teacher Recruitment and Retention State Scholarship Program. The bill allows scholarships to cover not only tuition, but also additional teacher preparation costs. If all available funds aren’t awarded, the Department of Higher Education can redistribute remaining dollars toward those expenses. 

To be eligible, students must be enrolled at a four-year Missouri college or university, be in their final semester of a state-approved teacher prep program, and be student teaching. 

The bill also clarifies that districts with a 169-day calendar remain eligible for additional teacher salary funding. And finally, the bill removes the sunset provision on the Certified Teacher Externship Program which is a provides educators with professional development experiences in workplaces. This immersive opportunity allows educators to gain firsthand knowledge of industry trends, skills, and tools, helping them connect classroom learning to real-world career opportunities. This collaboration strengthens teaching relevance and better prepares students for college and careers. 

Read our Priority Bill Update.

Read the Legislative Report.

Budget 

All eyes have been on the Senate this week as the May 9th constitutional deadline to pass the FY2026 operating budget swiftly approaches. Thursday, we finally saw the Senate Appropriation Committee changes reported. We expect the full FY2026 operating budget and Capitol Improvement bills (once they have been through the Senate Committee process) to be debated on the Senate floor early next week, leaving the week of May 5th for the chambers to work out their differences in Conference Committee before the May 9th constitutional deadline. 

In other news

• Kehoe's school funding task force slow to assemble
• Missouri governor drops state board pick amid criticism
• Senate set to approve Missouri governor’s shakeup of state education board
• Online educator job board helping teachers find jobs across Missouri
• Trump Administration cuts grant aimed at addressing teacher shortages in Missouri

Kansas Update

Revenues Are Up — But Kansas’ Budget Still Faces Long-Term Imbalance

On April 17, Kansas released its updated Consensus Revenue Estimate (CRE) — the state’s best projection of how much revenue it expects to collect from taxes and other sources. This report is critical because it serves as the foundation for building the state budget.

The good news: state revenue projections were increased by $377 million over FY 2025 and FY 2026 compared to November estimates. The revised numbers show:

• $9.89 billion in revenue for FY 2025
• $10.07 billion in revenue for FY 2026

But the core challenge remains: Kansas continues to spend significantly more than it brings in. According to the state’s General Fund Profile, Kansas will outspend its revenues by:

• $930 million in FY 2025
• $555 million in FY 2026
• $831 million in FY 2027
• …and the trend continues through FY 2029.

What’s Driving the Imbalance?

There are two key drivers:

1. Rising baseline expenditures: Kansas’ approved general fund spending has increased from $9.37 billion in FY 2024 to $10.82 billion in FY 2025, an increase of 15.5% in one year. Even with some one-time spending adjustments, the state’s commitments continue to grow — driven by health and human services, school finance, and higher education investments.
2. Revenue-reducing tax policy: The 2024 income tax overhaul — including reducing tax brackets and exempting Social Security income — is expected to reduce general fund revenue by $471.6 million in FY 2025 alone. While the CRE revision incorporates some of this, state analysts note the full impact won’t be understood until after the spring tax filing season, likely late May.

Source: Consensus Revenue Estimates Short Memo and SGF Profile for FY 2025 and FY 2026, April 2025, Kansas Legislative Research Department

Rainy Day Fund Buys Time — But Only for a While

The state currently has a $1.75 billion Budget Stabilization Fund — commonly known as a rainy day fund — which will help cover the near-term deficits. However, the state’s ending balance (the general fund surplus carried forward each year) is on a steep decline:

• $3.22 billion in FY 2024
• $2.29 billion in FY 2025
• $903 million in FY 2027
• $63.2 million in FY 2028
• - $730.5 million in FY 2029

By FY 2029, Kansas is projected to have no operating surplus left, and will be running a $730 million deficit, still having money in its rainy day fund. A positive ending balance allows the rainy day to grow; conversely, a negative ending balance requires the state to draw from the rainy day fund to cover a deficit. The current projections mean the state will rely more on reserves to cover recurring costs, a sign of growing fiscal stress.

“We are structurally imbalanced. There are no two ways about it.”

— Adam Proffitt, State Budget Director, Sunflower State Journal

Between 2021 and 2023, states experienced record revenue growth — fueled by a strong economy and an influx of federal aid totaling hundreds of billions of dollars. Many used the windfall to build up their rainy day funds, which reached a record high of over $160 billion nationwide by FY 2024.

As fiscal conditions begin to tighten, however, a growing number of states — Kansas included — face difficult choices about whether to rely on these reserves to sustain rising spending or offset tax reductions. Kansas’ Budget Stabilization Fund remains slightly above average, covering roughly 19% of general fund expenditures in FY 2025, but its role as a cushion may diminish as deficits worsen.

It’s important to remember that the Consensus Revenue Estimate is both a snapshot of recent tax collections and a forecast based on economic assumptions. These projections are sensitive to change. For instance, recessions typically reduce income and sales tax collections, while persistent inflation drives up the cost of state services – perhaps faster than revenue can keep up. Both scenarios would worsen the state’s fiscal position.

The April update reflects a stronger near-term outlook, but the underlying structural deficit remains. Without adjustments to either spending levels or revenue policy, Kansas will face increasingly limited fiscal choices in the years to come.

Kansas Lands Major Fintech Win with Fiserv Expansion

In a major boost to Kansas’ economic development efforts, global financial technology firm Fiserv announced plans to bring a regional fintech hub to Overland Park. The new location is expected to create 2,000 high-wage jobs and revitalize part of the former Sprint campus, marking one of the state’s largest office project announcements in recent memory.

The project has been under wraps for some time, operating under the name “Project Turtle” according to recent policy documents. Fiserv plans to set up its business in two phases, beginning in 2026 and finishing by 2030. 

Fiserv not only reinforces Overland Park’s role as a growing center for digital financial services but also signals Kansas’ broader strategy to attract high-value employers and retain homegrown talent. With average salaries projected at $102,000 and total payroll contributions of $4 billion over ten years, the project promises substantial economic impact across the region.

Policy Levers Pulled

To secure Fiserv’s investment, state and local leaders deployed a suite of incentives commonly used to recruit major employers:

• Promoting Employment Across Kansas Incentive: Fiserv is eligible to retain up to $89.4 million in employee withholding taxes. This business incentive supports job creation by allowing companies to keep a portion of payroll taxes from new hires.
• High Performance Incentive Program: The company could receive up to $17.4 million in tax credits for paying above-average wages and providing workforce training.
• Job Creation Fund: Fiserv will receive $20 million from this state fund, plus $5 million in relocation support for incoming employees.
• Local Property Tax Rebate: The Overland Park City Council approved a $1.3 million rebate over 10 years, excluding school district and community college tax levies.

The Bigger Picture

Fiserv’s decision followed a national site search that included cities like Phoenix, Dallas, and Atlanta. Company officials cited Kansas’ existing talent pipeline, quality of life, and workforce development efforts as key factors in choosing Overland Park.

As the company renovates 427,000 square feet at the Aspiria campus, state leaders are emphasizing the long-term significance. Beyond new jobs and capital investment, the move represents a broader win for Kansas’ ongoing efforts to diversify its economy, compete for innovation-sector jobs, and offer new opportunities to graduates across the state.

In Other News

• KC Chamber reveals 2025 Top 10 Small Businesses
• Textron Aviation holds grand opening for new Career & Learning Center
• Kansas Nursing Workforce Center announces grant from the Kansas Board of Regents to launch the Kansas Nursing Pathways Project
• 66th Annual Western Kansas Technology Education Fair to be hosted at Fort Hays State University

Aligned team member Claudia Fury-Aguirre, pictured with her husband, is a fitness enthusiast in addition to a public policy expert.

At Aligned, building relationships is not just part of the job—it is the job. Our newest team member, Claudia Fury-Aguirre, is spearheading a new program to grow our policy network across Kansas and inject a fresh perspective in our advocacy work that reflects tangible community needs garnered from perspectives shared by policymakers, business leaders, and local advocates. A belief that every child has the potential to thrive drives Claudia's passion for education policy and she credits the mentors who shaped her early path. "Every child is created with dignity and purpose," she says, "and parents are their first and most important educators. We need systems that empower families."  

Claudia's daily responsibilities involve coordinating our regional advisory boards and informing policies that reflect on-the-ground insights. While policy may seem like it exists solely in spreadsheets and statutes, she emphasizes that it begins with trust. "People think policy is just research and bills—but the heart of it is listening."  

One achievement she is especially proud of is witnessing our team grow stronger together—taking on larger projects, expanding our reach, and maintaining our mission focus. Looking to the future, she envisions Aligned as the region’s go-to resource for education and workforce solutions .  

Outside of work, you can find her in the kitchen, at the gym, or spending time with her family and church community. A favorite quote from Ronald Reagan grounds her: "There is no limit to the amount of good you can do if you don't care who gets the credit."  

That spirit of service and collaboration is what keeps Aligned moving forward. We are grateful to have Claudia on our team! 

Upcoming Events

Dr. Marguerite Roza has the scoop on which federal funds are legitimately at risk. You can find out by registering for her webinar happening next week.

If you want to dive even deeper into education finance, Dr. Roza will be leading a two-day intenstive June 10-11 in Kansas City which you can learn how to realign your district's finances for long-term student success. 

Join Aligned, Dr. Roza and the Edunomics Lab team from Georgetown University, to explore strategies to prioritize investments directly affecting student outcomes and earn a Certificate in Education Finance. 

Location: Kauffman Foundation Conference Center, Kansas City, Missouri

Who should attend: School board members, district leaders, policymakers, and education advocates 

Register here

Thank you to our generous event sponsors:

• Venue Sponsor: Ewing Marion Kauffman Foundation
• Platinum Sponsor: Missouri Charter School Association
• Gold Sponsors: U.S. Engineering and Holland 1916 Inc.
• Bronze Sponsors: JE Dunn Construction, KIDaccount, BMG Advisors and the City of Kansas City Missouri

We look forward to seeing you there!

All the best,

Torree Pederson

President

torree@wearealigned.org

Linda Rallo

Vice President

linda@wearealigned.org

Eric Syverson

Director of Policy

erics@wearealigned.org

About Aligned

Aligned is the only state-wide non-profit, nonpartisan business group working in Kansas and Missouri on educational issues impacting the full development of our children, from supporting high-quality early learning to solid secondary programs that provide rigorous academic programs and real-world learning opportunities.

Our vision is that our public education systems in Kansas and Missouri have the resources and flexibility to prepare students to pursue the future of their choice.

We are currently focused on education policies that will strengthen early childhood education, teacher recruitment and retention, and school finance reform.

Learn more about our work.