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Today the House and Senate finalized the budget for FY 2023. In a year where the conflicts centered on the "problem" of too much money, both chambers worked hard to find common ground and compromise.
Missouri school districts scored a big win with record funding for the school transportation line item. Missouri law mandates that school districts provide transportation to students who live more than 3.5 miles from school. Per state statute, districts may receive up to 75% of their allowable costs for transporting eligible students. More than a decade ago, districts generally received about two-third of the maximum allowed. Over time, the gap grew. Legislators from rural districts would plead to budget leaders each year as they covered many more miles and the loss of funds meant students would sometimes be on buses for an hour and half each way.
With the extra funds this year, the legislature fully funded the allowable costs. However, budget leaders cautioned that these were one-time funds.
Foundation formula fully funded again
The appropriation for PK-12 foundation formula totalled $3,561,737,794.
Big-ticket items included in HB 3002, which funds Elementary and Secondary Education, included:
- School transportation - $328 million
- Baseline teacher salary increase to $38,000 - $21.8 million
- Career ladder teacher incentive program - $37 million
- Evidence-based reading instruction - $25 million
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Close the Gap - $50 million
- Competency-based education program - $2 million
- Parents As Teachers - $29 million
- Agency-based home visitation - $18 million
- First Steps - $73 million
- Early Childhood Quality Initiatives - $46 million
You can read the entire education appropriation bill here.
Here are a few details on some of the line items...
The Close the Gap program is a third-party tutoring program. This appropriation would provide up to $1,500 in grants or reimbursements to address unfinished learning related to the coronavirus pandemic. Varsity Tutors lobbied for this line item. At $1,500 per student, that amount would serve 33,000 children. The language specifies that the first tranche will include applicants with incomes below 185% of the federal poverty level.
The evidence-based reading instruction line item will fund the reading program created by SB 681.
The competency-based education line item will funding the CBE grant program, also created in SB 681.
The Missouri Career Ladder, created in 1985, is one of the oldest performance pay programs in the United States. The career ladder rewards teachers for extra work that contributes to student success, like tutoring and professional development. However, a study in 2008 conducted by Booker and Glazerman found that the program had a limited effect on student test scores. That said, bill proponents touted this legislation as potentially helpful for teacher retention.
The legislature last funded in the Career Ladder in 2010 with an appropriation of $37,467,000.
Child care spending update
Kids Win Missouri tracked child care appropriations approved by the legislature from multiple fund sources this year. You can read their update here. Highlights include:
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$444 million for child care stabilization grants per the American Rescue Plan
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$104.5 million of the $277 million in child care discretionary funds per the American Rescue Plan
- Language authorizing the Office of Childhood to offer rate increases for child care subsidy up to 4%
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