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Aligned joins the Missouri school funding conversation
Missouri’s School Funding Modernization Task Force is taking a closer look at how the state funds K–12 education. Created by Governor Mike Kehoe earlier this year, the task force is charged with rethinking the 20-year-old foundation formula.
With four specialized working groups now underway, the effort has more than doubled in size. Subject-matter experts from across the state have been invited to help tackle complex questions around local tax effort, performance incentives, student counts, and funding targets.
Aligned is honored to share that our President and CEO, Torree Pederson, was selected to serve on the performance indicators working group. This group is exploring how Missouri might incentivize schools for measurable improvements in student outcomes — an issue with both promises and risks.
Working groups gather to discuss issues, find solutions
On September 17, members of the local effort factors working group met to discuss the current formula’s heavy reliance on property taxes. This group will grapple with how the formula assumes property values from 2004-5, an outdated approach that has created wide disparities in actual funding levels used to determine state calculations.
The group explored options to unfreeze local property values to reflect current valuations, reflect districts’ real tax effort, and potentially incorporate local income levels into a new formula. Members also acknowledge the challenge of aligning potential changes to local effort with ongoing debates surrounding property tax policy statewide.
That same afternoon, the performance indicators working group held its opening session. Members discussed potential ways Missouri could incorporate outcome-based funding incentives. Ideas included tying a portion of funding to third grade literacy benchmarks, college and career readiness, among others.
Task force facilitator Kari Monsees cautioned that any system must account for differences in student populations to avoid rewarding already-advantaged school districts.
Several participants highlighted Tennessee’s approach, which directs small incentive amounts toward schools that move English language learners, students from low-income backgrounds, and students with disabilities toward key targets.
The working groups will meet bi-monthly through the end of the year. Upcoming dates include:
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Oct. 1 – Local Effort Factors (10:30 AM) & Performance Incentives (1:00 PM)
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Oct. 7 – Funding Targets (10:30 AM) & Student Counts (1:00 PM)
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Oct. 15 – Local Effort Factors (10:30 AM) & Performance Incentives (1:00 PM)
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Oct. 20 – Funding Targets (10:30 AM) & Student Counts (1:00 PM)
Aligned’s Take: Missouri has an opportunity to modernize its funding system to be both adequate and fair. By joining a working group, Aligned will bring the voice of the business community to the table — helping ensure that any changes promote student success, align with workforce needs, and give schools resources to deliver results.
State audit highlights severe financial distress at SLPS
A newly released state audit warns that St. Louis Public Schools (SLPS) could run out of funds by the 2030–31 school year without urgent spending reforms. The audit, led by Missouri State Auditor Scott Fitzpatrick, cites widespread financial mismanagement and a lack of board oversight.
Key findings of the audit include:
- Unapproved high-paying salaries under former superintendent Keisha Scarlett.
- Questionable expenses, including thousands spent on luxury travel and events.
- Failure to follow state bidding laws for major purchases.
- Projected deficits of $35M+ annually could drain reserves by 2031.
SLPS leadership, including Superintendent Millicent Borishade, acknowledged the issues and said new financial controls are already being implemented. The district has hired a new CFO, recalled all credit cards, and adopted updated policies.
However, community leaders and the teacher’s union are calling for greater transparency and a long-term recovery plan beyond school closures and consolidations.
Missouri’s 2025 veto session ends with no veto overrides
Missouri lawmakers met on September 10, 2025, for the constitutionally scheduled veto session to consider Governor Mike Kehoe’s line-item vetoes and other budget cuts. Kehoe issued 208 vetoes and placed 32 expenditure restrictions in the FY26 state operating budget, cutting nearly $300 million in general revenue and restricting about $211 million more.
None of the governor’s vetoes were overturned — no successful override motions were taken during the session.
Alongside the veto session, a special (extraordinary) session addressed two major issues: a proposed change to how citizen-initiated ballot measures work (initiative petition reforms), and a congressional redistricting plan.
In other news
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