Where Things Stand on School Finance Reform

Both Kansas and Missouri are revisiting how they fund public education. While each state is at different stages in the process, the conversation is focused on modernizing outdated formulas to better reflect the needs of today’s students, schools, and communities.

This is a pivotal moment for both states. Most states revisit their education funding formulas only once every few decades, and Missouri is no exception — its current formula is now nearly 20 years old. Kansas, on the other hand, stands apart. Ongoing judicial oversight and a history of school finance litigation have led to more frequent revisions, making its formula one of the more actively reviewed in the country.

Missouri: New Task Force, Familiar Challenges

In Missouri, Governor Mike Kehoe has established a 16-member School Funding Modernization Task Force to review and recommend updates to the state’s foundation formula by December 2026. The task force comprises a group of legislators, educators, business leaders, and policy experts.

Legislative appointments:

• Sen. Rusty Black (Chair), Sen. Travis Fitzwater, Rep. Ed Lewis, and Rep. Marlene Terry

Governor’s Appointments:

• Superintendents representing both urban and rural districts.
• Leaders from the charter sector, business community, agriculture, and education policy.

State Board of Education Appointments:

• Board members Kerry Casey and Pamela Westbrooks-Hodge will also join the task force.

The task force’s charge is broad: evaluate whether the formula reflects today’s enrollment trends, student needs, and local revenue capacity. Several longstanding issues have already emerged in early conversations:

• Shifting focus away from legacy policy constraints. While the task force is charged with modernizing Missouri’s school funding formula, elements like the State Adequacy Target — which is based on past district spending — limit flexibility and make Missouri an outlier among states that use a clear, per-student base amount to drive funding.
• Student count methodology: Missouri currently funds schools based on average daily attendance, which can disadvantage districts serving students with attendance challenges.
• Special education funding: The formula doesn’t fully capture the rising cost or complexity of special education services.
• Local revenue assumptions: The formula uses property values which underestimates a community’s true ability to contribute to local funding.

Kansas: Task Force Moves Toward Recommendations

We’ve previously reported on the Kansas Education Funding Task Force, which began meeting earlier this year. After some early presentations and data reviews, the group is now turning toward deeper analysis and potential recommendations. The next meeting is scheduled to take place in June.

The task force is chaired by Sen. Renee Erickson and vice-chaired by Rep. Susan Estes. Other legislative members include:

• Senators: Beverly Gossage and Pat Pettey.
• Representatives: Jason Goetz, Scott Hill, Nikki McDonald, and Kristey Williams.

Non-legislative members include education leaders and state officials with expertise in school finance and student services: Corey Gibson, Frank Harwood, Bert Moore, Brad Neuenswander, Jim Porter, Adam Proffitt, Melissa Rooker, and Dean Zajic.

Interesting policy opportunities include:

• Fixing special education funding: Kansas’s current reimbursement was the focus of one entire task force meeting, where members heard about alternative possibilities.
• Earlier academic interventions: Greater support for literacy and math instruction in the early grades is a frequent topic of discussion.

Aligned’s Take: Both states are asking important questions about how schools are funded. While the paths forward will differ, common themes are likely to emerge in the months ahead. Aligned will track these developments, offer considerations and analysis for both states to bear in mind. These discussions are encouraging steps towards a more fair and effective future for school finance.

Interested in learning more about how Missouri and Kansas fund special education students? Check out a recording of our first Education Policy Webinar! 

Upcoming Events

In-Person Policy Update

Kansas City Education Policy Update 

Monday, May 20, 2025 

9:00 AM – 11:00 AM 

SafetyCulture | Crossroads District, Kansas City 

What to Expect: 

Policy Progress Report – Learn about the key education issues Aligned has been advancing in Jefferson City and Topeka. 

Strategic Discussion – Help shape our next steps in improving education policy at the state and local levels. 

Collaboration & Networking – Connect with civic and business leaders committed to educational progress in the region. 

Please reply to claudia@wearealigned.org if you would like to attend. 

Finance Course

Georgetown Edunomics Certificate Course 

June 10–11, 2025 

Kauffman Foundation Conference Center, Kansas City, Missouri  

Aligned is proud to host the Edunomics Certificate Course in partnership with Georgetown University’s McCourt School of Public Policy. This intensive, four-day training explores cost drivers, resource equity, policy impacts, and financial decision-making in education systems. 

School board members, district leaders, policymakers, and education advocates encouraged to attend.

Register here.

Event sponsors include: 

• Venue Sponsor - Ewing Marion Kauffman Foundation 
• Platinum Sponsor - Missouri Charter School Association & William T. Kemper Foundation - Commerce Bank, Trustee
• Gold Sponsors - U.S. Engineering and Holland 1916 Inc. 
• Bronze Sponsors - JE Dunn Construction, KIDaccount, BMG Advisors and the City of Kansas City Missouri 

Missouri Update

Remembering Kit Bond: A Champion for Missouri’s Children 

Missouri lost a dedicated public servant this week with the passing of former Governor and U.S. Senator Christopher “Kit” Bond, who died May 13 at age 86. 

Bond’s four decades in public office were marked by bipartisan leadership and a deep commitment to improving the lives of Missourians. Among his proudest accomplishments was expanding Parents as Teachers, a program he championed after becoming a father himself. As Governor, he took the program statewide in 1984, recognizing its value in helping families navigate early childhood challenges. Later, as a U.S. Senator, he worked to bring Parents as Teachers to families across the country and worldwide. 

Bond’s belief that strong starts lead to stronger futures informed much of his policy work. From early childhood to public housing and health care, he built coalitions across the aisle to enact meaningful change — often saying that the best ideas came not from Washington, but from listening to Missourians. 

Bond’s legacy continues through the many programs he helped grow, including scholarship initiatives and global education efforts bearing his name. 

Kit Bond will be remembered as a tireless advocate for Missouri’s children, a mentor to many, and a statesman whose quiet faith and steady leadership left a lasting imprint on the state he loved. 

Watch the tribute video produced by Parents as Teachers released when Senator Bond retired from its Board of Trustees.

Session comes to a close – how things ended 

The 2025 regular legislative session wrapped up yesterday, marking the first time that the House has not worked on its final day since setting a fixed day in 1952. You can read how things fell apart on Wednesday here and why the 2026 session might be turbulent. 

Next week, Aligned will provide a full breakdown of how all priorities fared and what to expect heading into next year. But with just a few hours left, here’s where things stand: 

Things That Passed 

SB 68 – This omnibus education bill includes two key wins for K–12: the permanent authorization of the teacher externship program and a requirement that literacy curricula be grounded in phonics-based instruction. 

SB 150 – A strong higher education package that makes transferring credits easier, expands access to adult high schools, creates new STEM and career-tech grant programs, and increases financial aid through Access Missouri. 

Things That Didn’t 

HB 269 – A widely supported tax credit package to expand access to child care, stalled in the Senate after a last-minute filibuster. 

HB 711 – An open enrollment bill that made it further than ever, but a flurry of unrelated amendments derailed the bill in the final stretch. We’ll be back next year, pushing for a clean bill with transportation support. 

Funding Secured 

• Foundation Formula  – Fully funded at $4.28 billion, including approximately $300 million in additional general revenue. 

• Missouri Quality Pre-K Grants 
• $55.8 million for district and charter programs 
• $16.2 million for private providers 

• Teacher Pay 
• $68.5 million for Career Ladder 
• $66.8 million for the Baseline Salary Grant Program ($40,000 minimum) 

• New Pilot  – $5 million from HB 5 to launch a community child care exchange cost-sharing model, supporting low-income families and employer-driven solutions 

Stay tuned for next week’s full session recap, where we’ll break down the budget, policy, and what to watch in 2026. 

State board of education meeting report   

The Missouri State Board of Education met this week. Three new members, Michael Matousek, Kenneth “Brooks” Miller, and Jon Otto were sworn in and the board elected Mary Schrag from West Plains as its new president. Kim Bailey announced she would be leaving the board in June.  

At the meeting, the Department of Elementary and Secondary Education staff gave a thorough presentation on the history and framework of Missouri’s charter school law—offering a helpful refresher for returning members and critical context for new appointees.  

With charter schools now more than 25 years old in the state, the conversation revisited why the legislature created the law, how it has evolved, and what role the State Board plays in the process. New board members asked insightful questions about school location decisions, accountability structures, and the intended purpose of charters.  

The discussion underscored a key point: proponents designed Missouri’s charter schools to offer families more public school options, especially in places where traditional systems were struggling, in exchange for greater accountability. Hearing that history again reminded many of us why this model exists and what it takes to ensure it delivers on its promise. 

You can listen to a recording of the meeting here. 

Update on Federal Relief Funds at Risk 

The U.S. Department of Education recently told Missouri’s education department (DESE) that it will no longer allow extra time to spend certain federal COVID relief funds. DESE had asked for an extension so schools and state programs could finish using those funds for important projects. 

On May 8, DESE learned that the federal government denied its request to extend spending deadlines for eight initiatives — totaling more than $14.7 million.  

These included: 

• Support for Homeless Students: A university-led study and needs assessment for children and youth experiencing homelessness ($465,000). 
• Funding for Three School Districts: Remaining ESSER III funds for Ferguson-Florissant, Golden City, and Spokane school districts ($2.4 million). 
• Teacher & Leader Development: Funding for 20 consultants to recruit and retain teaching and leadership talent across the state ($1.5 million). 
• Literacy Support: 50 consultants to strengthen reading instruction and deliver LETRS training statewide ($3.2 million). 
• Math Instruction: 32 math consultants, educator training, and a statewide summer math summit ($2.7 million). 
• Assessment Tools: Creation of through-course and formative assessments and related training for schools ($1.7 million). 
• Mental Health Services: Mental Health First Aid training, a resource hub, and school-based grants ($723,000). 
• Student Data Systems: A statewide data system to better track student outcomes ($2 million). 

DESE is still awaiting a decision regarding $18 million in funding requests for afterschool programs, nonpublic school support, administrative needs, and a grants management system. The department is considering appeals to try to preserve the funds that were denied. 

Note: The Missouri General Assembly is still in session at the time of this publication. We will provide a complete end-of-session report next week.

Budget Update

Last week, lawmakers sent most of the FY26 budget to the governor’s desk. However, the House did not take up HB 19 which contained all new capital improvement projects. With session officially concluded, the governor would have to call a special session to reconsider the $515 million in spending. Some of the big ticket items that the House rejected include: 

• Missouri State Fair Facilities – $55,000,000 
• University of Missouri Radioisotope Science Center – $50,000,000 
• Mental Health Hospital Construction – $48,159,575 
• National Guard Facilities – $50,904,515  

The Missouri Independent reported that House Budget Chair Dirk Deaton said he decided to pull the bill after consulting with House Speaker Jon Patterson and Majority Leader Alex Riley, but not with Senate Appropriations Chair Lincoln Hough. House Democrats also said they were left out of the discussion. 

Revenue Update 

State Budget Director Dan Haug announced Wednesday that net general revenue collections for April 2025 increased 3.3 percent compared to those for April 2024, from $1.38 billion last year to $1.43 billion this year. Net general revenue collections for 2025 fiscal year-to-date decreased 0.8 percent compared to April 2024, from $10.70 billion last year to $10.61 billion this year.  

In other news

• Missouri unveils plan to transform program for students with disabilities
• Bill banning cellphone use in schools heads to governor
• Lawsuit accuses ex-St. Louis school leaders of misuse of funds

Kansas Update

Mixed Results in Kansas School Bond Elections

Last week, we shared that voters in the Augusta school district approved a $55 million no-tax-increase bond to modernize school buildings. That measure passed with 60% of the vote and will fund safety improvements, updated classrooms, and a new early childhood center.

This week, the results were different in Goddard, where voters rejected a proposed $70 million bond package. The bond would have funded the construction of a new intermediate school and district-wide safety upgrades, among other projects.

District leaders had cited projected enrollment growth, driven by new housing developments, as a key reason for the proposal. With the vote failing by a narrow margin, education leaders in Goddard expressed concern about how to manage future capacity and facility needs.

The outcome in Goddard follows a pattern seen elsewhere this year, as multiple Kansas school bond issues have failed to secure voter approval in Wichita, Mulvane, and Ness City.

School bonds require a simple majority to pass, but their success often hinges on effective communication with voters and community confidence in long-term planning. These recent elections offer a snapshot of how Kansas communities are weighing immediate financial pressures against long-term investments in their local schools.

Rethinking School District Reserves in Kansas

As Kansas policymakers continue discussing school finance, two recurring questions are gaining traction: how much money are school districts keeping in reserve and is it too much?

Maintaining reserves is standard financial practice for districts. They help smooth over cash flow gaps, cover unplanned expenses like HVAC repairs or snow days, and offer protection when funding is delayed. But as reserves have grown over time — particularly in restricted funds like bond and interest accounts — they’ve also drawn more scrutiny.

A 2020 Legislative Post Audit report examined a decade’s worth of school district balances and found that total unencumbered reserves had grown by 35% (after adjusting for inflation). Nearly all that growth came from just a few funds, including those used for long-term facility costs and contingency reserves. Most balances (86%) were in restricted funds, meaning they can only be spent on specific uses set in state law. The report also noted that most districts did not have written policies on how much they should keep in reserve.

Source: Author's analysis of KSDE data.

So, what’s changed since then?

Updated data from the Kansas State Department of Education shows that total reserves continue to rise, but much more slowly than before. From FY 2020 to FY 2024, total carryover balances increased by about 7.7% (adjusted for inflation), with most of the growth still concentrated in capital and debt service funds. Unrestricted reserves, which districts can spend more freely, have remained relatively flat, suggesting that districts are not stockpiling flexible funds, but maintaining steady buffers to manage risk.

Meanwhile, the Government Finance Officers Association (GFOA) is encouraging states and local governments to rethink reserve strategies altogether. Instead of relying on a universal “two month” rule, GFOA now recommends that risk-based planning considers each district’s unique financial conditions, stating that more than two months may be prudent given elevated risk profiles.

A longer form blog post takes a closer look at what the audit found, what the latest data tells us, and what Kansas leaders might consider as they revisit expectations for school district reserve practices.

Read the full blog here. 

In other news

• Kansas Board of Regents elects Regent Blank Benson and Regent Diana Mendoza as Chair and Vice Chair for FY 2026
• All state universities except Emporia State University seek tuition increases
• State Board approves updated state assessment performance level descriptors
• Putting the Brakes on the Summer Slide, KSDE Insight Podcast

A Decade of Success



It's time to share some bittersweet news: Linda Rallo will retire as Vice President of Missouri Policy on May 31, 2025.

A longtime champion for children in Missouri, Linda has led the charge on increasing access to quality early learning seats with passion and purpose for a decade. 

Linda has led Missouri's early learning efforts for Aligned for the past 10 years

To know Linda means understanding that her passion has always been with Missouri's youngest children, fighting for access to quality early childcare, and supporting families when needed most. That's why it is no surprise that in her retirement, Linda is most excited to spend more time with her family, particularly her two young grandsons.

Aligned's newsletters have always been driven by Linda's passion for good writing and storytelling. Linda published over 250 newsletters that were valued by advocates and stakeholders. She poured her talents and heart into every single story, ensuring recipients were informed on the latest policy updates. 

"Working with Linda has made work seem like play for the past 10 years. It didn’t feel like a job because I enjoyed working with her so much," said Torree Pederson, President and CEO of Aligned. “Although it won't be the same without Linda's wit and creativity, I know that she has left a tremendous mark on quality childcare in Missouri that will have an impact for years to come. I’m confident she will be wishing us the best of luck as we continue to carry out the mission and vision with passion and purpose, just as she did for so many years.”

Linda’s Reflections

We asked Linda to share some of her reflections on her work and looking ahead to her retirement.

What are you most looking forward to in retirement?   

I’ve always been more of a jack of all trades than an expert in any one thing. Retirement will provide the time to take some of my skills to the next level. I love to cook, and one goal is to learn how to make the five mother sauces by heart. I want to make more pasta from scratch, I especially want to learn how to make ravioli. Much of my career has tapped into my writing skills; I am curious to know if I have a novel or screenplay in me. And I need to finish that stack of half-read books on my nightstand. But mostly, I want to be that on-call kind of grandma who can “Mary Poppins” in at a moment’s notice and have time for long stroller walks and lazy afternoons in the park with my grandsons. 

What do you consider your biggest accomplishment in your work with Aligned?

Although my natural instinct is to swing for the fences, my work at Aligned taught me how to celebrate incremental gains and professionally thrive in environments with annual wins and losses. Ten years ago, Aligned worked to put a trigger in state statute that would lead to some Pre-K funding if the legislature fully funded the foundation formula. A colleague and I were sitting in the Senate gallery during budget deliberations when lawmakers narrowly approved the education budget, which included the full-filling of the state formula for K-12. We looked at each other with astonishment and said, “We just got Pre-K!”  

That moment sparked a series of advocacy efforts that led to the passage of Pre-K contracting provisions, which created more than a thousand free seats for income-eligible 4-year-olds in St. Louis and Kansas City; it laid the groundwork to secure federal grants, push for an Office of Childhood, create more funding for private providers and small school districts and double the annual investment in the formula.  

Lately, I have been interviewing superintendents to learn how they are implementing these funds in their local programs; I usually end up in tears when I find out all the amazing opportunities they are providing to children that wouldn’t have happened without the work of Aligned and our partners. Being a part of that decade’s effort is the highlight of my career. 

What will you miss most about your work with Aligned? 

I know it’s a cliché, but I’ll miss our team and the colleagues across Missouri who are in the trenches every day fighting for policies that help children and families. We always joke that no one’s getting rich advocating for education policy, and I feel lucky to have spent my career working on good causes with great people. 

Our team and Linda’s colleagues across Missouri will undoubtedly miss her. Her work is remarkable, and we wish her the best as she moves into retirement.

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.